Court dismissed wishlist to regularize expired bank facility but suspended SARFAESI action for one month to allow petitioner to seek renewal from bank.
Coercive action initiated by the bank under Section 14 of the SARFAESI Act is suspended for one month.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR.JUSTICE ANTONY DOMINIC
THURSDAY, THE 21ST DAY OF FEBRUARY 2013/2ND PHALGUNA 1934
WP(C).No. 4483 of 2013 (I)
PETITIONER(S):
JOHN MATHAI, AGED 48 YEARS S/O.LATE MATHEW, VELUNTHARA VEEDU KIZHAKKETHERIVU P.O., KOTTARAKKARA, KOLLAM.
BY ADV. SRI.C.RAJENDRAN
RESPONDENT(S):
THE CHIEF MANAGER, STATE BANK OF TRAVANCORE KOTTARAKKARA BRANCH, KULAMON JUNCTION, KOTTARAKKARA KOLLAM DISTRICT-691506.
BY SRI.R.S.KALKURA
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21-02-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No. 4483 of 2013
APPENDIX
PETITIONER(S) EXHIBITS
EXHIBIT P1: A TRUE PHOTOCOPY OF THE RELEVANT PAGES OF THE PASS BOOK. EXHIBIT P2: A TRUE PHOTOCOPY OF THE NOTICE ISSUED BY THE ADVOCATE COMMISSIONER DATED 01/02/2013
/true copy/
sd/- P.A. To Judge
ANTONY DOMINIC, J
JUDGMENT
In December 2008, petitioner had availed of a Cash Credit facility of Rs.2 Lakhs from the respondent Bank. Although certain payments were made, according to the learned Standing Counsel for the Bank, the present liability due from the petitioner is Rs.2,57,197/-. On account of the defaults committed, the account was classified as NPA and in the SARFAESI proceedings that were initiated by the Bank, an order was passed by the Chief Judicial Magistrate Court, Kollam, under Section 14 of the SARFAESI Act. On that basis, the Advocate Commissioner has issued Ext.P2 notice proposing to take over possession of the secured assets. It is at that stage, petitioner has filed this writ petition and the request made by him is to get the Cash Credit facility regularized.
was granted for one year and that the same has not been renewed thereafter. If the Cash Credit facility has not been renewed after the initial one year period, this Court cannot now direct the Bank
W.P.(C).4483/13
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to regularize the same. On the other hand, if the petitioner is desirous of getting the facility revived, it is for him to approach the respondent Bank, submit an application along with necessary documents and on that basis, seek orders from the Bank itself.
Therefore, I dispose of this writ petition directing that the coercive action now initiated against the petitioner will stand suspended for a period of one month. In the meantime, it will be open to the petitioner to approach the Bank, complete the procedural formalities and seek renewal of the Cash Credit facility availed of by him.
Sd/- ANTONY DOMINIC, JUDGE
mrcs
/true copy/
sd/- P.A. To Judge
3 issues framed by the court
Whether the writ court can direct the bank to regularize a cash credit facility that has not been renewed post the initial period.
Whether the coercive action initiated under the SARFAESI Act can be suspended.
Reform of the judgment requires mapping to subject vocabulary.
1 provisions across 1 enactments
John Mathai
The Chief Manager, State Bank of Travancore Kottarakkara Branch
Antony Dominic
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
