Appeal against Single Judge order quashing coercive proceedings under SARFAESI Act. Court modified order to keep proceedings in abeyance for three months to allow repayment, with threat of resuming proceedings if not paid.
Coercive proceedings kept in abeyance for 3 months; proceedings to continue if amount not paid.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR.JUSTICE K.M.JOSEPH & THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR TUESDAY, THE 25TH DAY OF MARCH 2014/4TH CHAITHRA, 1936 WA.No. 457 of 2014 () IN WP(C).3058/2014
(AGAINST THE ORDER/JUDGMENT IN WP(C) 3058/2014 of HIGH COURT OF KERALA DATED 13-02-2014)
APPELLANT(S)/PETITIONERS:
RESPONDENT(S)/RESPONDENTS:
THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 25-032014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
K. M. JOSEPH & A.K.JAYASANKARAN NAMBIAR, JJ
W.A.No. 457 OF 2014
Dated this the 25th day of March 2014
J U D G M E N T
K.M. Joseph, J
The appellants are the writ petitioners. The second appellant availed an overdraft facility of Rs.10 Lakhs from the respondent-Bank. Since there is no repayment, proceedings were initiated under SARFAESI Act. The appellants approached the Government, which passed Ext.P2 order directing the appellants to pay Rs.1,22,600/- on or before 30/11/2013 and the balance in 36 equal monthly installments. The bank's contention that the Government had no authority to pass Ext.P2 order was approved by the learned Single Judge. The learned Single Judge directed the appellants to satisfy the entire liability in ten equal monthly installments and, subject to the same, coercive proceedings were kept in abeyance.
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the learned senior counsel for the first respondent - Bank. The learned counsel for the appellants would submit that the entire amount due to the bank will be paid off within three months from today as the second appellant has auctioned a chitty. The learned senior counsel for the bank submits that if the amount is paid, the bank will consider any concessional scheme available in view of one time payment being made by the appellants.
i). We modify the judgment of the learned Single Judge and in order to enable the appellants to pay off the entire amount within a period of three months from today, coercive proceedings will be kept in abeyance for a period of three months from today.
ii). In case the appellants do not pay off the amount due, coercive proceedings can be continued against the appellants as per law from the position where it stands today.
iii). If the appellants make an application seeking the benefit of any concessional scheme, the respondent-bank will
W.A.No.457/2014
3
consider the same.
The appeal is disposed of as above.
Sd/-
K. M. JOSEPH, JUDGE .
Sd/-
A.K.JAYASANKARAN NAMBIAR, JUDGE.
Dpk.
/True copy/ PS to Judge.
2 issues framed by the court
Whether coercive proceedings under SARFAESI Act under appeal are to be maintained.
Whether an extension of time for repayment should be granted to prevent auction.
Appellants
State Bank of India
K.M. Joseph
A.K. Jayasankaran Nambiar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
