Propyl Packaging Limited vs. State Bank Of INDIA - Kerala High Court, 22 February 2019

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN FRIDAY ,THE 22ND DAY OF FEBRUARY 2019 / 3RD PHALGUNA, 1940 WP(C).No. 1466 of 2019 PETITIONERS: 1 PROPYL PACKAGING LIMITED, DOOR NO.488/19, 1ST FLOOR, SUNCITY COMPLEX, KOORKENCHERRY, THRISSUR-680007, REPRESENTED BY ITS MANAGING DIRECTOR -RAJESH K.S. 2 RAJESH K.S., S/O. SATHEESH BABU, NANDANAM, SMRRA-111, SAWMILL ROAD, KOORKKENCHERRY, THRISSUR - 680007. 3 SALEESH K.S., S/O. SATHEESH BABU, KUTTIPARAMBIL HOUSE, PARADISO, 841 M-4, MERCY LANE-2, ELAMAKKARA, KOCHI-682026. BY ADVS. SRI.K.I.MAYANKUTTY MATHER SMT.T.K.SREEKALA SRI.R.JAIKRISHNA RESPONDENTS: 1 STATE BANK OF INDIA, SME BRANCH, THRISSUR - 680001, REPRESENTED BY ITS ASSISTANT GENERAL MANAGER. 2 ASSISTANT GENERAL MANAGER, STATE BANK OF INDIA, SME BRANCH, THRISSUR-680001. 3 STATE LEVEL BANKERS' COMMITTEE (SLBC), CANARA BANK, SLBC CELL, CIRCLE OFFICE, CANARA BANK BUILDING, PB NO.159, M.G. ROAD, THIRUVANANTHAPURAM - 695001, REPRESENTED BY ITS CONVENER. 4 STATE OF KERALA, REPRESENTED BY ITS CHIEF SECRETARY TO GOVERNMENT, SECRETARIAT, THIRUVANANTHAPURAM - 695001. WP(C).No. 1466 of 2019 2 5 DIRECTOR OF INDUSTRIES AND COMMERCE, DIRECTORATE OF INDUSTRIES AND COMMERCE, VIKAS BHAVAN, THIRUVANANTHAPURAM - 695033. BY ADVS. SRI.GEORGE THOMAS (MEVADA)(SR.) DR.PAULY MATHEW MURICKEN-SC SRI.AMAL GEORGE - SC, SBI OTHER PRESENT: SMT.AMMINIKUTTY-SR.GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22.02.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C).No. 1466 of 2019 3 J U D G M E N T Even though various allegations, averments and assertions are made in this writ petition, Sri.V.V.Asokan, the learned Senior Counsel assisted by Smt.T.K.Sreekala, learned counsel for the petitioners, confined his prayer that the Bank be directed to consider a representation that his clients will make, either for regularization or for restructuring of a loan facility, availed of by them from the respondent – Bank, within a short time frame. Sri.Asokan, also requests that I do not state affirmatively on the other issues raised in the writ petition, since according to him, his clients will raise all of them before the Bank and that the Bank be directed to consider it untrammeled by these proceedings.

Sri.George Thomas Mevada, the learned senior counsel, assisted by Sri.Amal George, the learned standing counsel for the State Bank of India, commenced his submissions by saying that he has serious objections to the contentions raised in this writ petition, but when he saw that Sri.Asokan was confining only to the afore limited relief, he agreed that his client will consider the representation of the petitioners, if it is made properly and within a period of two weeks from the date of receipt of a copy of this judgment. The learned senior counsel prayed that this Court may allow the Bank full liberty to deal with the

WP(C).No. 1466 of 2019 4 representation in terms of law without any observations being made in this judgment.

Sri.Pauly Mathew Muricken, the learned counsel for the State Level Banker's Committee, said that his client has, in fact, considered the petitioners' claims in terms of the applicable orders and circulars, but that they were not able to help them, even though the issues projected by them appear to be serious, on account of the Master Directions of the Reserve Bank of India.

Taking note of the afore submissions and since I see that the learned senior counsel appearing on both sides are virtually in unison, that I confine my consideration only to the limited extent of allowing the petitioners to make a representation, I deem it appropriate to order this writ petition, granting such liberty to the petitioners.

Resultantly, I order this writ petition, permitting the petitioners to make a proper representation, either for regularization or restructuring of the loan account, to the 2nd respondent – Assistant General Manger, State Bank of India, within a period of two weeks from the date of receipt of a copy of this judgment; in which event, the said Authority will consider the same, after affording an opportunity of being heard to the petitioners, not later than one month thereafter, and communicate

WP(C).No. 1466 of 2019 5 the resultant proceedings/order to the petitioners without any avoidable delay.

Needless to say, unless such time as the afore exercise is completed by the 2nd respondent and the resultant order communicated to the petitioners, all further action being pursued by the Bank under the SARFAESI Act will stand deferred. DEVAN RAMACHANDRAN rp JUDGE

WP(C).No. 1466 of 2019 6 APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 AOF THE LETTER OF ARRANGEMENT ISSUED BY THE 1ST RESPONDENT DATED 07/01/2017. EXHIBIT P2OF THE LETTER SENT BY THE 1ST PETITIONER DATED 04/10/2018. EXHIBIT P3E-MAIL COMMUNICATION ISSUED BY THE 2ND RESPONDENT DATED 23/10/2018. EXHIBIT P4OF VIABILITY REPORT PREPARED BY THE 1ST RESPONDENT. EXHIBIT P5OF THE E-MAIL COMMUNICATIONS ISSUED BY THE 2ND RESPONDENT DATED 10/10/2018. EXHIBIT P5 AOF THE E-MAIL COMMUNICATIONS ISSUED BY THE 2ND RESPONDENT DATED 31/10/2018. EXHIBIT P6OF THE NOTICES ISSUED BY THE 1ST RESPONDENT DATED 05/11/2018. EXHIBIT P6 AOF THE NOTICES ISSUED BY THE 1ST RESPONDENT DATED 5/11/2018. EXHIBIT P6 BOF THE NOTICES ISSUED BY THE 1ST RESPONDENT DATED 05/11/2018. EXHIBIT P7OF THE PROPOSAL SUBMITTED BY THE 1ST PETITIONER TO THE 1ST RESPONDENT DATED 05/11/2018. EXHIBIT P8OF THE E-MAIL COMMUNICATION ISSUED BY THE 2ND RESPONDENT DATED 08/11/2018. EXHIBIT P9 TRUE COPIES OF THE COVERING LETTERS ALONG WITH MINUTES OF THE MEETING OF THE 3RD RESPONDENT DATED 29/08/2018. EXHIBIT P9 A TRUE COPIES OF THE COVERING LETTERS ALONG WITH MINUTES OF THE MEETING OF THE 3RD RESPONDENT DATED 20/08/2018. EXHIBIT P10OF THE OBJECTION SUBMITTED BY THE 1ST PETITIONER DATED 12/11/2018. EXHIBIT P11OF THE E-MAIL ISSUED BY THE 2ND RESPONDENT DATED 14/11/2018. WP(C).No. 1466 of 2019 7 EXHIBIT P12OF THE LETTER ISSUED BY THE 1ST PETITIONER DATED 17/11/2018. EXHIBIT P13OF THE E-MAIL ISSUED BY THE 2ND RESPONDENT DATED 19/11/2018. EXHIBIT P14OF THE REPRESENTATION SUBMITTED BY THE 1ST PETITIONER DATED 27/11/2018. EXHIBIT P15OF THE E-MAIL ISSUED BY THE 2ND RESPONDENT DATED 10/12/2018. EXHIBIT P16OF THE REPRESENTATION SUBMITTED BY THE 1ST PETITIONER TO THE 5TH RESPONDENT DATED 13/12/2018. EXHIBIT P17OF THE E-MAIL ISSUED BY THE 3RD RESPONDENT TO THE 1ST RESPONDENT DATED 21/12/2018. EXHIBIT P18OF THE CERTIFICATE ISSUED BY VILLAGE OFFICER, MURINGOOR THEKKUMURY DATED 04/12/2018. EXHIBIT P19OF THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT (AMENDMENT) BILL 2018 (BILL NO.102/2018) DATED 22/03+/2018. EXHIBIT P20 PHOTOGRAPH DISCLOSING THE REPLACEMENT OF ROOFING SHEETS. EXHIBIT P20 A PHOTOGRAPH DISCLOSING THE REPLACEMENT OF ROOFING SHEETS. EXHIBIT P21OF THE VOUCHER IN RESPECT OF THE PAYMENT TO CEEJO MACKSON ENGG. WORKS, KOCHI DATED 29/08/2018. EXHIBIT P21 AOF THE VOUCHER IN RESPECT OF THE PAYMENT TO CEEJO MACKSON ENGG. WORKS, KOCHI DATED 27/08/2018. EXHIBIT P21 BOF THE VOUCHER IN RESPECT OF THE PAYMENT TO CEEJO MACKSON ENGG. WORKS, KOCHI DATED 28/08/2018. EXHIBIT P21 COF THE VOUCHER IN RESPECT OF THE PAYMENT TO CEEJO MACKSON ENGG. WORKS, KOCHI DATED 23/08/2018. EXHIBIT P21 DOF THE RECEIPT GIVEN BY CEEJO MACKSON ENGG. WORKS, KOCHI. EXHIBIT P22OF THE VOUCHER IN RESPECT OF THE PAYMENT TO MR. VINOD KUMAR DATED 08/09/2018. WP(C).No. 1466 of 2019 8 EXHIBIT P22 AOF THE VOUCHER IN RESPECT OF THE PAYMENT TO MR. VINOD KUMAR DATED 15/09/2018. EXHIBIT P22 BOF THE VOUCHER IN RESPECT OF THE PAYMENT TO MR. VINOD KUMAR DATED 22/09/2018. EXHIBIT P22 COF THE VOUCHER IN RESPECT OF THE PAYMENT TO MR. VINOD KUMAR DATED 29/09/2018. EXHIBIT P22 DOF THE VOUCHER IN RESPECT OF THE PAYMENT TO MR. VINOD KUMAR DATED 13/10/2018. EXHIBIT P22 EOF THE VOUCHER IN RESPECT OF THE PAYMENT TO MR. VINOD KUMAR DATED 20/10/2018. EXHIBIT P22 FOF THE VOUCHER IN RESPECT OF THE PAYMENT TO MR. VINOD KUMAR DATED 27/10/2018. EXHIBIT P22 GOF THE VOUCHER IN RESPECT OF THE PAYMENT TO MR. VINOD KUMAR DATED 02/11/2018. EXHIBIT P23OF THE VALUATION CERTIFICATE GIVEN BY THE APPROVED VALUER DATED 08/09/2018. EXHIBIT P23 AOF THE VALUATION CERTIFICATE GIVEN BY THE APPROVED VALUER DATED 08/09/2018. EXHIBIT P23 BOF THE VALUATION CERTIFICATE GIVEN BY THE APPROVED VALUER DATED 08/09/2018. EXHIBIT P23 COF THE VALUATION CERTIFICATE GIVEN BY THE APPROVED VALUER DATED 08/09/2018. EXHIBIT P23 DOF THE VALUATION CERTIFICATE GIVEN BY THE APPROVED VALUER DATED 08/09/2018. EXHIBIT P23 EOF THE VALUATION CERTIFICATE GIVEN BY THE APPROVED VALUER DATED 08/09/2018. EXHIBIT P23 FOF THE VALUATION CERTIFICATE GIVEN BY THE APPROVED VALUER DATED 08/09/2018. EXHIBIT P24OF THE STATEMENT SHOWING THE DETAILS OF SALES DURING THE PERIOD 01/03/2018 TO 31/12/2018. EXHIBIT P24 AOF THE STATEMENT SHOWING THE DETAILS OF PURCHASES DURING THE PERIOD 01/03/2018 TO 31/12/2018. EXHIBIT P25OF THE GST RETURN FOR THE MONTH OF MARCH 2018. EXHIBIT P25 AOF THE GST RETURN FOR THE MONTH OF APRIL 2018. WP(C).No. 1466 of 2019 9 EXHIBIT P25 BOF THE GST RETURN FOR THE MONTH OF MAY 2018. EXHIBIT P25 COF THE GST RETURN FOR THE MONTH OF JUNE 2018. EXHIBIT P25 DOF THE GST RETURN FOR THE MONTH OF JULY 2018. EXHIBIT P25 EOF THE GST RETURN FOR THE MONTH OF AUGUST 2018. EXHIBIT P25 FOF THE GST RETURN FOR THE MONTH OF SEPTEMBER 2018. EXHIBIT P25 GOF THE GST RETURN FOR THE MONTH OF OCTOBER 2018. EXHIBIT P25 HOF THE GST RETURN FOR THE MONTH OF NOVEMBER 2018. EXHIBIT P25 IOF THE GST RETURN FOR THE MONTH OF DECEMBER 2018. EXHIBIT P26OF THE GST RETURN FOR THE MONTH OF MARCH 2018. EXHIBIT P26 AOF THE GST RETURN FOR THE MONTH OF APRIL 2018. EXHIBIT P26 BOF THE GST RETURN FOR THE MONTH OF MAY 2018. EXHIBIT P26 COF THE GST RETURN FOR THE MONTH OF JUNE 2018. EXHIBIT P26 DOF THE GST RETURN FOR THE MONTH OF JULY 2018. EXHIBIT P26 EOF THE GST RETURN FOR THE MONTH OF AUGUST 2018. EXHIBIT P26 FOF THE GST RETURN FOR THE MONTH OF SEPTEMBER 2018. EXHIBIT P26 GOF THE GST RETURN FOR THE MONTH OF OCTOBER 2018. EXHIBIT P26 HOF THE GST RETURN FOR THE MONTH OF NOVEMBER 2018. EXHIBIT P26 IOF THE GST RETURN FOR THE MONTH OF DECEMBER 2018. WP(C).No. 1466 of 2019 10 EXHIBIT P27OF THE STATEMENT SHOWING THE DETAILS OF QUARTERS PROVIDED TO THE EMPLOYEES. EXHIBIT P28OF THE COVERING LETTER OF DIRECTOR OF INDUSTRIES DATED 06/02/2019. EXHIBIT P28 AOF THE LETTER OF STATE LEVEL BANKERS' COMMITTEE KERALA ADDRESSED TO DIRECTOR OF INDUSTRIES DATED 21/12/2018. RESPONDENT'S/S EXHIBITS: ANNEXURE R1 F ANNEXURE R2 F ANNEXURE R3 A TRUE PHOTOCOPY OF THE MASTER DIRECTION - RESERVE BANK OF INDIA (RELIEF MEASURES BY BANKS IN AREAS AFFECTED BY NATURAL CALAMITIES) DIRECTIONS, DATED 03/07/2017. ANNEXURE R3 B TRUE PHOTOCOPY OF THE MINUITES OF THE SPECIAL MEETING OF SLBC, KERALA HELD ON 20/08/2018. ANNEXURE R3 C TRUE PHOTOCOPY OF THE DECISIONS TAKEN IN THE MEETING OF THE SLBC SUB COMMITTEE ON NATURAL CALAMITY (2018) HELD ON 11/09/2018. ANNEXURE R3 D TRUE PHOTOCOPY OF THE MINUTS OF THE SPECIAL SLBC (FLOOD RELIEF MEASURES) 2018 HELD ON 29/08/2018. ANNEXURE R3 E TRUE PHOTOCOPY OF THE DECISIONS TAKEN BY THE SLBC SUB COMMITTEE ON NATURAL CALAMITY (2018) HELD ON 15/10/2018. ANNEXURE R3 F TRUE PHOTOCOPY OF THE DECISIONS TAKEN BY THE SLBC SUB COMMITTEE ON NATURAL CALAMITY (2018) HELD ON 15/11/2018. ANNEXURE R3 G A TRUE PHOTOCOPY OF THE LETTER DATED 17/12/2018 OF THE DIRECTOR OF INDUSTRIES AND COMMERCE, THIRUVANANTHAPURAM ADDRESSED TO THE 3RD RESPONDENT. ANNEXURE R3 H TRUE PHOTOCOPY OF THE LETTER DATED 10/01/2019 OF THE 1ST RESPONDENT ADDRESSED TO THE 3RD RESPONDENT. ANNEXURE R3 I A TRUE PHOTOCOPY OF THE MINUTES OF THE 126TH MEETING OF SLBC, KERALA HELD ON 18/12/2018. WP(C).No. 1466 of 2019 11 EXT R1(A) TRUE PHOTOCOPY OF THE SATELLITE MAP OF KINFRA INDUSTRIAL PARK EXT R1(B) TRUE PHOTOCOPY OF THE PHOTOGRAPH OF ONE OF THE MACHINES INSTALLED IN THE FACTORY