Mylath Sandeep vs. Reserve Bank Of INDIA - Kerala High Court, 26 March 2021

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH FRIDAY, THE 26TH DAY OF MARCH 2021 / 5TH CHAITHRA, 1943 WP(C).No.24771 OF 2020(V) PETITIONERS: 1 MYLATH SANDEEP, AGED 49 YEARS, S/O.NARAYANAN KUTTY, PROPRIETOR M/S. NANDANAM SANITARIES, NEAR SOBHA CITY, KUNNAMKULAM RD., PUZHAKKAL P.O., TRISSUR - 680 003. 2 DEEPA P., AGED 42 YEARS, W/O.MYLATH, SANDEEP, RESIDING AT MYLATH HOUSE, KANNAPURAM, CHETTUPUZHA P.O., TRISSUR - 680 012. BY ADVS. SRI.R.S.KALKURA SRI.HARISH GOPINATH SMT.NEENU PAVITHRAN RESPONDENTS: 1 RESERVE BANK OF INDIA, REGIONAL OFFICE, TRIVANDRUM, BAKERY JUNCTION, P.B.NO.6507, THIRUVANANTHAPURAM - 695 033, REPRESENTED BY ITS REGIONAL DIRECTOR. 2 NATIONAL CREDIT GUARANTEE TRUSTEE COMPANY LTD., MINISTRY OF FINANCE, GOVERNMENT OF INDIA, HAVING ITS REGISTERED OFFICE SWALAMBAN BHAVAN, C11, G BLOCK, BANDRA KURLA COMPLEX, BANDRA E, MUMBAI - 400 051, REPRESENTED BY ITS MANAGING DIRECTOR.

WP(C) Nos.24771/2020 & 4737/2021 : 2 : 3 BAJAJ FINANCE LTD., REGISTERED OFFICE AKURDI, PUNE, CORPORATE OFFICE, 4TH FLOOR, BEHIND WEIKFIELD, IT PARK VIMAN NAGAR, PUNE 411014, REPRESENTED BY ITS MANAGING DIRECTOR. 4 BAJAJ FINANCE LTD., DD TRADE TOWER, 3RD FLOOR, KALOOR KATHRIKADAVU ROAD, OPP. WELLMART SUPER MARKET, KALOOR, COCHIN - 682017, KERALA, INDIA, REPRESENTED BY ITS AREA CREDIT MANAGER. 5 UNION OF INDIA, REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF FINANCIAL SERVICES, 3RD FLOOR, JEEVAN DEEP BUILDING, SANSAD MARG, NEW DELHI - 110 001. R3-4 BY ADV. SRI.B.S.SURESH KUMAR R5 BY SRI.DINESH CHERUKAT, SC, RAILWAYS THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 26.03.2021, ALONG WITH WP(C).4737/2021(N), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) Nos.24771/2020 & 4737/2021 : 3 : IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH FRIDAY, THE 26TH DAY OF MARCH 2021 / 5TH CHAITHRA, 1943 WP(C).No.4737 OF 2021(N) PETITIONERS: 1 MYLATH SANDEEP, AGED 49 YEARS, S/O. NARAYANAN KUTTY, MYLATH HOUSE, KANNAPURAM, CHETTUPUZHA P.O., THRISSUR-680 012. 2 DEEPA P., AGED 42 YEARS, W/O. MYLATH SANDEEP, RESIDING AT MYLATH HOUSE, KANNAPURAM, CHETTUPUZHA P.O., THRISSUR-680 012. BY ADV. SRI.R.S.KALKURA RESPONDENTS: 1 RESERVE BANK OF INDIA, REGIONAL OFFICE, TRIVANDRUM, BAKERY JUNCTION, P.B.NO.6507, THIRUVANANTHAPURAM-695 033, REPRESENTED BY ITS REGIONAL DIRECTOR. 2 M/s. KOTAK MAHINDRA BANK LTD., 5TH FLOOR, SAMSUNG TOWERS, 402L, PANTHEON ROAD, EGMORE, CHENNAI-600008, REPRESENTED BY ITS MANAGER.

WP(C) Nos.24771/2020 & 4737/2021 : 4 : 3 M/s.KOTAK MAHINDRA BANK LTD., 1ST FLOOR, OPPOSITE HOTEL INTERNATIONAL, KANAKA DAMODAR BUILDING, VEEKSHANAM ROAD, KOCHI-682 035, REPRESENTED BY ITS MANAGER. 4 UNION OF INDIA, REPRESENTED BY ITS SECRETARY TO GOVERNMENT, DEPARTMENT OF FINANCIAL SERVICES, 3RD FLOOR, JEEVAN DEEP BUILDING, SANSADMARG, NEW DELHI-110 001. R4 BY ADV. SMT.M.S.KIRAN, CGC R4 BY SRI.P. VIJAYAKUMAR, ASGI SMT. RADHIKA RAJASEKHARAN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 26.03.2021, ALONG WITH WP(C).24771/2020(V), THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) Nos.24771/2020 & 4737/2021 : 5 : J U D G M E N T ~ ~ ~ ~ ~ ~ ~ ~ ~ Dated this the 26th day of March, 2021 [WP(C) Nos.24771/2020 & 4737/2021] The petitioners in these two writ petitions are husband and wife. W.P.(C) No.24771/2020 has been filed by the petitioners seeking to direct respondents 3 and 4 to grant the benefit of financial assistance as envisaged under Ext.P4 Emergency Credit Line Guarantee Scheme (ECLGS).

W.P.(C) No.4737/2021 has been filed seeking to direct respondents 2 and 3 to restructure the home loan availed by the petitioners or in the alternative direct respondents 1 and 4 to oversee that respondents 2 and 3 grant the benefit envisaged under Ext.P1 Circular dated 06.08.2020 of the Reserve Bank of India including restructuring of loan to the petitioners within a time limit to be prescribed by this Court.

The learned Standing Counsel for respondents 3 and 4 in W.P.(C) No.24771/2020 pointed out that for considering the application for revival and restructuring of loan,

WP(C) Nos.24771/2020 & 4737/2021 : 6 : they issued Ext.R3(a) letter dated 08.12.2020 to the petitioners requesting to furnish the financials for the year 2019-2020. However, the petitioners have not made available the financials.

The learned Standing Counsel for respondents 2 and 3 in W.P.(C) No.4737/2021, on instructions, submitted that the petitioners have not produced financials of the relevant period, for considering their request. In the circumstances, the writ petitions are disposed of directing the petitioners to produce requisite financials before respondents 3 and 4 in W.P.(C) No.24771/2020 and respondents 2 and 3 in W.P.(C) No.4737/2021. If the petitioners produce the requisite documents on or before 29.03.2021, the respondents-financial institutions will consider the applications submitted by the petitioners and take a decision without further delay and at any rate, before the expiry of the period of the relevant Scheme. N. NAGARESH, JUDGE aks/26.03.2021

WP(C) Nos.24771/2020 & 4737/2021 : 7 : APPENDIX OF WP(C) 24771/2020 PETITIONERS' EXHIBITS: EXHIBIT P1OF THE LETTER OF SANCTION DATED 28/10/2014 EXECUTED BY THE PETITIONERS IN FAVOR OF THE 4TH RESPONDENT. EXHIBIT P2OF THE RELEVANT PORTION OF THE LOAN AGREEMENT DATED 28/10/2014 EXECUTED BY THE PETITIONERS IN FAVOR OF THE 4TH RESPONDENT. EXHIBIT P3 THEOF THE FINANCIAL STATEMENT PERTAINING TO M/S.NANDANAM SANITARIES AS ON 31/3/2017. EXHIBIT P4 THEOF THE EMERGENCY CREDIT LINE GUARANTEE SCHEME UPDATED AS ON 31/10/2020. EXHIBIT P5OF THE REGISTRATION CERTIFICATE UNDER THE GST VALID FROM 21/9/2017. EXHIBIT P6OF THE NOTICE DATED 28/8/2020 ISSUED BY THE RESPONDENTS 3 AND 4 THROUGH THEIR COUNSEL. EXHIBIT P7OF THE REPLY DATED 18/10/2020 ISSUED BY THE COUNSEL FOR THE PETITIONERS TO THE COUNSEL FOR THE RESPONDENTS 3 AND 4. EXHIBIT P8OF THE EMAIL DATED 1/10/2020 ISSUED BY THE PETITIONERS TO THE 3RD RESPONDENT. EXHIBIT P9OF THE EMAIL DATED 7/11/2020 ISSUED BY THE PETITIONERS TO THE 3RD RESPONDENT.

WP(C) Nos.24771/2020 & 4737/2021 : 8 : EXHIBIT P10OF THE PRESS RELEASE DATED 30.12.2020 ISSUED BY THE MINISTRY OF FINANCE. EXHIBIT P11OF THE NOTICE DATED 25/1/2021 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONERS EXHIBIT P12OF THE NOTICE DATED 12.2.2021 ISSUED BY THE 3RD RESPONDENT. EXHIBIT P13OF THE E-MAIL DATED 17.03.2021 ISSUED BY THE DIRECTOR, MSME TO THE PETITIONER AS WELL AS RESPONDENTS 3 AND 4 RESPONDENTS EXHIBITS: EXHIBIT R3(a)OF THE LETTER DATED 08.12.2020 WITH POSTAL RECEIPT ISSUED BY RESPONDENT Nos.3 TO 4 TO THE PETITIONER. EXHIBIT R3(b)OF THE GUIDELINES ISSUED BY RESERVE BANK OF INDIA REGARDING RESTRUCTURING THE LOAN

WP(C) Nos.24771/2020 & 4737/2021 : 9 : APPENDIX OF WP(C) 4737/2021 PETITIONERS' EXHIBITS: EXHIBIT P1OF CIRCULAR NO.RBI/2020-21/17 DOR NO.DP.BC4/21.4.048/2020-21 DATED 6.8.2020

ISSUED

BY THE FIRST RESPONDENT. EXHIBIT P2OF THE QUESTION ANSWER SESSION PUBLISHED BY HDFC BANK IN THE INTERNET. EXHIBIT P3OF THE NOTICE DATED 6.11.2020 ISSUED BY THE RESPONDENTS 2 AND 3 TO THE PETITIONERS. EXHIBIT P4OF THE NOTICE DATED 24.11.2020 ISSUED BY THE RESPONDENTS 2 AND 3 TO THE PETITIONERS. EXHIBIT P5OF THE REPLY ISSUED BY THE PETITIONERS TO THE SUIT NOTICES DATED 6.11.2020. EXHIBIT P6OF THE EMAIL DATED 21.10.2020 SENT BY THE PETITIONERS TO THE SECOND RESPONDENT. EXHIBIT P7OF THE EMAIL DATED 2.11.2020 ISSUED BY THE 2ND RESPONDENT TO THE PETITIONERS. EXHIBIT P8OF THE EMAIL DATED 7.11.2020 ISSUED BY THE PETITIONERS TO THE SECOND RESPONDENT. EXHIBIT P9OF THE EMAIL DATED 17.11.2020 ISSUED

BY THE PETITIONERS

TO RESPONDENTS 2 AND 3. EXHIBIT P10OF THE EMAIL DATED 25.1.2021 ISSUED BY THE SECOND RESPONDENT TO THE PETITIONERS.

WP(C) Nos.24771/2020 & 4737/2021 : 10 : EXHIBIT P11OF THE NOTICE DATED 19.2.2021 ISSUED UNDER THE INSTRUCTIONS OF THE 2ND RESPONDENT TO THE 1ST PETITIONER SR