Disposed

M/S.Sharon Spices v. the Chief Manager

Kerala HC14 Jul 2017WA/1442/2017

Case brief

AI extract

What is this about?

In a writ appeal regarding SARFAESI proceedings, the High Court of Kerala extended the initial installment due date from July to October 2017. The court increased the first installment amount to 45 lakhs to balance debt recovery with the business viability of the appellants.

What did the court decide?

Extension of initial installment due date to October 10, 2017, with a minimum amount of Rs. 45 lakhs.

M/S.Sharon Spices Vs the Chief Manager — Banking and Recovery | Kerala HC (2017)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE THE CHIEF JUSTICE MR.NAVANITI PRASAD SINGH

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THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V

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FRIDAY, THE 14TH DAY OF JULY 2017/23RD ASHADHA, 1939

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WA. No. 1442 of 2017 ()

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(AGAINST THE JUDGMENT DATED 28-06-2017 IN WP(C) NO.20936/2017.)

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APPELLANT(S)/PETITIONERS:

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M/S. SHARON SPICES, XI/74A,75 KOLLAD PO., KOTTAYAM, PIN-686029, REPRESENTED BY ITS PARTNERS MR. BOBBY JACOB MARKOSE,

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AGED 48 YEARS, S/O. MARKOSE, RESIDING AT FLAT NO.B-2,

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583 B (16/229) FIRST FLOOR, JJ APARTMENT, MUTTAMBALAM, DEVALOKAM PO., KOTTAYAM, PIN-686038 AND MRS. ANCY BOBBY, AGED 44, W/O. BOBBY JOCOB MARKOSE,

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RESIDING AT FLAT NO.B-2, 583 B(16/229), FIRST FLOOR,

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J.J APARTMENT, MUTTAMBALAM, DEVALOKAM PO., KOTTAYAM-686038.

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BOBBY JOCOB MARKOSE, AGED 48 YEARS, S/O. MARKOSE, RESIDING AT FLAT NO.B-2, 583 B(16/229) FIRST FLOOR, JJ APARTMENT, MUTTAMBALAM, DEVALOKAM PO., KOTTAYAM-686038.

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ANCY BOBBY, AGED 44, W/O. BOBBY JACOB MARKOSE, RESIDING AT FLAT NO.B-2, 583 B(16/229) FIRST FLOOR, JJ APARTMENT, MUTTAMBALAM, DEVALOKAM PO., KOTTAYAM-686038.

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BY ADV. SRI.HARISH GOPINATH

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RESPONDENT(S)/RESPONDENTS:

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THE CHIEF MANAGER, ANDHRA BANK, K.K.ROAD, KANJIKUZHY, KOTTAYAM, KERALA-686004.

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AUTHORIZED OFFICER, ANDHRA BANK, ZONAL OFFICE, ERNAKULAM-683001.

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BY ADV. SRI. ABRAHAM MATHEW (VETTOOR)

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THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 14-07-2017, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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NAVANITI PRASAD SINGH, C.J. &

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RAJA VIJAYARAGHAVAN V., J.

W.A. No.1442 of 2017

Dated this the 14^th day of July, 2017

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JUDGMENT

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Navaniti Prasad Singh, C.J.

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We have heard learned counsel for the appellants and learned counsel for the Andhra Bank, and with their consent, this appeal is being disposed of at this stage itself.

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The appellants being in substantial default, the Bank resorted to SARFAESI proceedings. The accounts of the appellants were declared as Non Performing Asset (NPA) and the entire loan which is about Rs.4.87 crores was recalled. Threatened with dispossession, the appellants approached the learned single Judge stating that they have a spices industry and if some breathing time is given, it could develop a repaying capacity. However, the learned single Judge directed that commencing from 10.07.2017, the appellants would pay the dues in 12 equal installments. Learned counsel for the appellants submits that if the appellants are given some more time, they would liquidate the entire dues.

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WA.1442/17

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-:2:-

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Having considered the matter, in our view, as the Bank is interest in recovery of its money and not to disrupt business of the enterprise, we alter the date fixed by the learned single Judge in the judgment under appeal from 10.07.2017 to 10.10.2017. The first installment will thus be required to be paid in the first week of October, 2017 and it would not be less than Rs. 45,00,000/-. In case of any default by the appellants, the Bank would be at liberty to proceed further with the proceedings as it may be entitled to and may be advised. If the appellants approach the Bank for any readjustment/re-schedulement, the Bank upon payment of the first installment would consider it in accordance with law.

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With the above observations, this appeal stands disposed of.

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Sd/Navaniti Prasad Singh, Chief Justice

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Sd/Raja Vijayaraghavan V., Judge

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krj.15/7

M/S.Sharon Spices v. the Chief Manager

Case brief

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M/S.Sharon Spices v. the Chief Manager

Case brief

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