Disposed

Zakkeer Hussain v. Federal Bank Ltd.

Kerala HC13 Nov 2014OP (DRT)/75/2014

Case brief

AI extract

What is this about?

On appeal against a Debt Recovery Tribunal order, the High Court allowed the petitioner to clear the outstanding liability via instalments. The court ordered coercive proceedings under the SARFAESI Act to remain in abeyance until 12.1.2015, subject to full repayment, while denying extension of time in the future.

What did the court decide?

Coercive proceedings under SARFAESI Act to be kept in abeyance till 12.1.2015, subject to petitioner clearing entire outstanding liability.

Zakkeer Hussain Vs Federal Bank Ltd. — Banking and Recovery | Kerala HC (2014)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON

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THURSDAY, THE 13TH DAY OF NOVEMBER 2014/22ND KARTHIKA, 1936

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OP (DRT).No.75 of 2014 (O)

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SA NO.116/2014 of DEBT RECOVERY TRIBUNAL,ERNAKULAM.

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PETITIONER:

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ZAKKEER HUSSAIN,S/O.MOHAMMED KASSIM, AGED 52 YEARS,RESIDING AT 'ZAKKEER MANZIL' MULLIKKAD,CHITHARA P.O.,KOLLAM DISTRICT PIN-691559.

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BY ADVS.SRI.SAIJU S. SRI.P.P.SYAM

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RESPONDENT:

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FEDERAL BANK LTD.,ZONAL OFFICE, FEDERAL TOWERS,M.G.ROAD,STATUE, THIRUVANANTHAPURAM-695559 REPRESENTED BY ITS AUTHORISED OFFICER UNDER THE SARFAESI ACT 2002.

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BY ADVS.SRI.A.ANTONY SMT.LEELAMMA ANTONY

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THIS OP (DEBT RECOVERY TRIBUNAL) HAVING BEEN FINALLY HEARD ON 13-11-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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OP (DRT).No.75 of 2014 (O)

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APPENDIX

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PETITIONERS EXHIBITS:

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EXT.P1:THE TRUE COPY OF THE JUDGMENT DTD.10/12/2013 OF THE HON'BLE HIGH COURT OF KERALA IN WRIT PETITION (CIVIL)NO.30038 OF 2013.

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EXT.P2:THE TRUE COPY OF THE INTERIM ORDER DTD.17/3/2014, PASSED BY THE DEBTS RECOVERY TRIBUNAL IN SA NO.116/2014.

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EXT.P3:THE TRUE COPY OF THE NOTICE DTD. /7/2014, ISSUED BY THE ADVOCATE COMMISSIONER APPOINTED VIDE PROCEEDINGS IN CMP NO.195/14 IN THE FILE OF THE CHIEF JUDICIAL MAGISTRATE'S COURT, KOLLAM.

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EXT.P4:THE TRUE COPY OF RECEIPT DTD.10/7/2014 EVIDENCING REMITTANCE MADE BY THE PETITIONER TO THE RESPONDENT BANK.

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RESPONDENTS EXHIBITS:

NIL

//TRUE PY//

P.S. TO JUDGE

P.R. RAMACHANDRA MENON, J.

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========================

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O.P.(DRT). No. 75 of 2014

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Dated this the 13^th day of November, 2014

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JUDGMENT

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The petitioner availed an overdraft facility from the respondent Bank creating security interest over the property in question. But the repayment could not be effected promptly, when the respondent Bank proceeded against the petitioner by resorting to the remedy under the SARFAESI Act which in turn is under challenge in this writ petition.

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The learned counsel for the petitioner submits that the default was never wilful, but due to some unforeseen circumstances and that the petitioner does not dispute the liability to clear the due amount or the rights and liberties of the respondents in proceeding against the petitioner. The limited relief now pressed before this Court is to permit the petitioner to clear the entire liability granting some breathing time in this regard by way of reasonable instalments.

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The learned counsel appearing for the respondent Bank points out that the petitioner had approached this Court earlier by filing W.P.(C). No. 30038 of 2013 which was disposed of as per Ext.P1 judgment dated 10.12.2013 enabling the petitioner to satisfy the liability in a phased manner by way of ten equal monthly instalments commencing from 1.1.2014. Admittedly there occurred some default

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O.P.(DRT). No. 75 of 2014 -2-

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and the petitioner approached the DRT, Ernakulam by way of S.A. No. 116 of 2014 wherein Ext.P2 interim order came to be passed. The matter is still pending and because of the default on the part of the petitioner, the Bank proceeded with further steps and hence the present litigation.

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The learned counsel for the petitioner submits that, some more payments were effected by the petitioner after Ext.P1 judgment. It is stated by the learned counsel for the Bank that, the direction given by this Court as per interim order dated 14.7.2014 to deposit a sum of 3 lakhs has been complied with, though little belatedly. The₹ learned counsel also submits that some concessions were given to the petitioner permitting him to deposit a sum of 31.5 lakhs on or before₹ 10.09.2014 out of which only 16 lakhs was paid by the petitioner and₹ the balance is still due.

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The learned counsel for the petitioner submits that the petitioner is ready to clear the entire outstanding liability for which, breathing time is sought for, by two months. The learned counsel for the Bank submits that, the bonafides of the petitioner will have to be tested and if it is a genuine one, the petitioner might be given an opportunity to prove the same.

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In the said circumstance, this Court finds it fit and proper to

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O.P.(DRT). No. 75 of 2014 -3-

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direct the coercive proceedings if any, to be kept in abeyance till 12.1.2015, subject to the condition that, the entire outstanding liability shall be cleared by the petitioner in the meanwhile. It is also made clear that, no petition for extension of time will be entertained under any circumstance. The petitioner shall produce a copy of the judgment along with a copy of the O.P.(DRT) before the concerned respondent for further steps.

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The O.P.(DRT) is disposed of.

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P.R. RAMACHANDRA MENON, JUDGE.

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kp/-

Zakkeer Hussain v. Federal Bank Ltd.

Case brief

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Zakkeer Hussain v. Federal Bank Ltd.

Case brief

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