Partly allowed

Siddique v. the Authorized Officer

Kerala HC26 Mar 2014WP(C)/1699/2014

Case brief

AI extract

What is this about?

Petitioner, a defaulter on bank loans, sought breathing time to repay dues under SARFAESI Act. Court directed payment of cash credit immediately and term loan in installments, staying recovery proceedings pending compliance.

What did the court decide?

Directing petitioner to clear cash credit dues immediately and term loan dues in ten monthly installments; staying recovery proceedings subject to compliance.

Siddique Vs the Authorized Officer — Contract and Commercial Disputes | 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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WEDNESDAY, THE 26TH DAY OF MARCH 2014/5TH CHAITHRA, 1936

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WP(C).No. 1699 of 2014 (J)

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PETITIONER :

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SIDDIQUE, AGED 43 YEARS S/O. IMBICHIKOYA, M/S. ARROW SIGN OPP. CORONATION THEATRE, PAVAMANI ROAD, KOZHIKODE.

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BY SENIOR ADVOCATE SRI.RENJITH THAMPAN BY ADV. SMT.P.R.REENA

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RESPONDENT(S) :

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1. THE AUTHORIZED OFFICER UNDER THE SECURITIZATION AND RECONSTRUCTION

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OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT 2002

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STATE BANK OF INDIA, RASMECCC KOZHIKKODE KALLAYI HEIGHTS, KOZHIKKODE. PIN-673 003.

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2. STATE BANK OF INDIA REP. BY ITS REGIONAL MANAGER RASMECCC KOZHIKKODE KALLAYI HEIGHTS, KOZHIKKODE, PIN-673003.

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3. MANAGER

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STATE BANK OF INDIA, PALAYAM BRANCH, UDUPPI BUILDINGS M.M. ALI ROAD, PALAYAM, KOZHIKKODE, PIN-673 003.

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R1 TO R3 BY SENIOR ADVOCATE SRI.K.K.CHANDRAN PILLAI BY ADV. SRI.THOMAS JAMES MUNDACKAL

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26-03-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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...2/-

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WP(C).No. 1699 of 2014 (J)

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APPENDIX

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PETITIONERS' EXHIBITS :

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EXT. P1. TRUE COPY OF THE NOTICE DATED 14-11-12 ISSUED BY THE STATE BANK OF INDIA TO THE PETITIONER.

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EXT. P2. TRUE COPY OF THE STATEMENT OF ACCOUNTS IN ACCOUNT NO. 31907223428.

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EXT. P3. TRUE COPY OF THE RELEVANT PAGES OF ACCOUNT NO. 31907289672.

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EXT. P4. TRUE COPY OF THE REPRESENTATION FILED BY THE PETITIONER BEFORE THE RESPONDENTS DATED 11-1-2014.

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RESPONDENT(S)' EXHIBITS : NIL

//TRUE COPY//

P.A. TO JUDGE

P.R. RAMACHANDRA MENON J.

JUDGMENT

The petitioner availed one cash credit facility and a term loan from the respondent Bank. Because of some adverse circumstances, the repayment could not be effected on time, as scheduled, which made the petitioner a defaulter, when the Bank proceeded with steps under the SARFAESI Act. This in turn is sought to be intercepted by way of this writ petition.

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The learned counsel for the petitioner submits that the default was never wilful, but because of some frustrating pecuniary circumstances. It is stated that the petitioner does not intend to dispute the liability, simultaneously pointing out that, there is absolutely no challenge whatsoever with regard to the rights and liberties of the Bank to proceed with steps under the SARFAESI Act. The only prayer now pressed before this Court is to grant some breathing time to clear the entire liability by way of reasonable installments.

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Heard the learned standing counsel for the respondent Bank as well, who points out that outstanding liability as on date in respect

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W.P.(C) No. 1699 of 2014

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: 2 :

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of the cash credit facility is Rs. 22,000/-; while outstanding liability in respect of overdraft facility is Rs. 11.7 lakhs.

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After hearing both the sides, the petitioner is directed to clear entire outstanding amount of Rs.22,000/- in respect of cash credit facility on or before the 20^th of April, 2014 and directed to clear entire liability in respect of term loan by way of 'ten' equal monthly installments; the first of which shall be effected on or before the 20^th of April, 2013; followed by similar installments to be effected on or before the 20^th of the succeeding months. Subject to this, the recovery proceedings stated as being pursued against the petitioner shall be kept in abeyance for the time being. It is made clear that, if the petitioner commits any default in remitting the installments as above, the respondent Bank will be at liberty to proceed with further steps for realization of the entire amount in lump, from the stage where it stands now.

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The Writ Petition is disposed of.

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Sd/-

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P. R. RAMACHANDRA MENON, (JUDGE)

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kmd

Siddique v. the Authorized Officer

Case brief

What is this about?

What did the court decide?

Siddique v. the Authorized Officer

Case brief

What is this about?

What did the court decide?

What the court decided

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