Allowed

Karthik Constructions v. Union Bank of India

Kerala HC22 Nov 2016WP(C)/37384/2016

Case brief

AI extract

What is this about?

Petitioner faced SARFAESI proceedings for unpaid bank overdraft. Expressing willingness to repay dues in instalments, Court allowed time, ordered payment in 12 monthly instalments, and deferred possession of secured assets. Default would permit bank to take legal steps.

What did the court decide?

Petitioner to pay overdue amount with interest in 12 equal monthly instalments starting 21/12/2016; Advocate Commissioner to defer possession of secured asset; default allows bank to take steps in acc

Karthik Constructions Vs Union Bank of India — Banking and Recovery | Kerala HC (2016)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT:

¶3

THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE

¶4

TUESDAY, THE 22ND DAY OF NOVEMBER 2016/1ST AGRAHAYANA, 1938

¶5

WP(C).No. 37384 of 2016 (W)

¶6

PETITIONER(S):

¶7

KARTHIK CONSTRUCTIONS, EDAKKATTIL PARAMBIL, BINANIPURAM, EDAYAR, ERNAKULAM 683 502, (REPRESENTED BY P.K.MOHANAN, PROPRIETOR).

¶8

BY ADVS.SRI.T.K.RAJESH KUMAR

¶9

SMT.T.N.BINDU SRI.P.KRISHNANKUTTY NAIR (KOLLAMALA) KUM.APARNA SOMARAJAN

¶10

RESPONDENT(S):

¶11

UNION BANK OF INDIA, NODAL REGIONAL OFFICE, ERNAKULAM, UNION BANK BHAVAN, II FLOOR, M.G ROAD, KOCHI 682 035, REPRESENTED BY ITS CHIEF MANAGER & AUTHORISED OFFICER MR.SAMIR CHANDRA JHA.

¶12

R BY SRI.A.S.P.KURUP, SC.

¶13

THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22-11-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶14

SKG

¶15

WP(C).No. 37384 of 2016 (W)

¶16

APPENDIX

¶17

PETITIONER(S)' EXHIBITS

¶18

EXHIBIT P1. COPY OF THE UNDERTAKING DATED 5.7.13 ISSUED BY M/S. BINANI ZINC LIMITED TO THE RESPONDENT BANK. EXHIBIT P2. COPY OF THE NOTICE BEARING REF.NO.NRO. E.CRLD.SPN.5647/16 DATED 16.6.16 ISSUED BY THE RESPONDENT TO THE PETITIONER. EXHIBIT P3. COPY OF THE LETTER DATED 1.3.16 ISSUED BY M/S. BINANI ZINC LIMITED TO THE PETITIONER. EXHIBIT P4. COPY OF THE MP 23/16 OF FILED BY THE RESPONDENT BANK BEFORE THE HONOURABLE CHIEF JUDICIAL MAGISTRATE COURT, ERNAKULAM.

¶19

RESPONDENT(S)' EXHIBITS NIL -----------------------

/TRUE COPY/

P.A. TO JUDGE

SKG

A.M. SHAFFIQUE, J.

¶24

=============== W.P. (C) No. 37384 of 2016

¶25

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

¶26

Dated this, the 22^nd day of November, 2016

¶27

J U D G M E N T

¶28

Petitioner has approached this Court being faced with proceedings initiated by the respondent Bank under the SARFAESI Act.

¶29

Petitioner availed overdraft facility from the respondent Bank by pledging six valuable properties belonging to the proprietor as well as his near relatives for undertaking various civil contract works. The petitioner could not repay the monthly instalments in time on account of certain financial difficulties. In the meantime, proceedings had been taken by the respondent Bank under the SARFAESI Act.

¶30

Learned counsel for the petitioner submits that the petitioner is ready and willing to pay the outstanding dues in instalments and will also pay the regular instalments if some time is granted.

¶31

Having regard to the fact that the petitioner had expressed the willingness to repay the amount in instalments, I am

¶32

W.P(C) No.37384/16

¶33

-:2:-

¶34

of the view that some indulgence can be shown to the petitioner.

¶35

Accordingly, this writ petition is disposed of as under:-

¶36

(i) The petitioner shall pay the overdue amount with accrued interest in 12 equal monthly instalments starting from 21/12/2016.

¶37

(ii) The Advocate Commissioner shall defer taking possession of the secured asset for the time being.

¶38

(iii) In addition to payment of the aforesaid amount, petitioner shall also remit monthly instalments as per the agreed terms.

¶39

(iv) If there is default in payment of any of the aforesaid amounts, it shall be open for the respondent Bank to take such steps in accordance with law.

¶40

Sd/- A.M. SHAFFIQUE, JUDGE

¶41

Rp22/11/2016

¶42

//True Copy//

¶43

P.S to Judge

Karthik Constructions v. Union Bank of India

Case brief

What is this about?

What did the court decide?

Karthik Constructions v. Union Bank of India

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Punjab National Bank Vs Debts Recovery Tribunal and Others

The Kerala State Co. Operative Federation for Fisheries Development Ltd. Vs Pd.Raphael

T.C. John Vs Commercial Tax Officer

Sanobar.K.K Vs the Village Officer

Jibimol J.P. Vs the Authorised Officer, Chief Manager (Advances), Sbt

M/S a.v.G.Motores Limited Kottayam Vs the Assistant Commissioner, Spl.Circle, Commercial Taxes