Disposed

K.v.Babu v. Union Bank of India

Kerala HC19 Jul 2018WP(C)/11578/2018

Case brief

AI extract

What is this about?

The High Court of Kerala disposed of a writ petition by a borrower who faced recovery proceedings under the SARFAESI Act. The petitioner sought a direction to sell assets privately or allow the bank to take possession. The Court observed that the Section 13(2) notice was merely a show cause notice and directed the parties to proceed accordingly.

What did the court decide?

Petitioner directed to reply to the Bank's notice expressing willingness for bank to take over assets.

K.v.Babu Vs Union Bank of India — Banking and Recovery | Kerala HC (2018)

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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 DAMA SESHADRI NAIDU

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THURSDAY, THE 19TH DAY OF JULY 2018 / 28TH ASHADHA, 1940

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WP(C).No. 11578 of 2018

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PETITIONER:

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K.V. BABU, AGED 60 YEARS, S/O.LATE GEORGE VARGHESE, PROPRIETOR, NATURAL FOODS, XV/467/PUTHUSSERY HOUSE, NEAR SANKAR PHARMACY, MANJUMMAL, ERNAKULAM, KOCHI - 683 501.

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BY ADVS.SRI.ANOOP JOSEPH

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SRI.K.B.ARUNKUMAR SMT.ZERENE LINDA MITCHEL SMT.K.K.DAJULA SMT.NEETHU SATHEESH SMT.SAIPOOJA

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RESPONDENT(S):

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1. UNION BANK OF INDIA, MANJUMMAL BRANCH, KOCHI - 683 501, REPRESENTED BY ITS MANAGER,

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2. THE CHIEF OFFICER AND AUTHORISED OFFICER, UNION BANK OF INDIA, NODAL REGIONAL OFFICE, UNION BANK BHAVAN, IIND FLOOR, M.G. ROAD, KOCHI - 682 035.

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

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19-07-2018, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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mbr/

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WP(C).No. 11578 of 2018

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APPENDIX

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PETITIONERS' EXHIBITS:

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EXHIBIT P1 : TRUE COPY OF THE RENT AGREEMENT DATED 12.5.2016 EXECUTED BY THE PETITIONER AND LANDLORD.

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EXHIBIT P2 : TRUE COPY OF THE LOAN RECALLING NOTICE DATED 1.3.2017 ISSUED BY THE FIRST RESPONDENT TO THE PETITIONER. EXHIBIT P3 : TRUE COPY OF THE SECTION 13(2) NOTICE DATED 14.3.2017 ISSUED BY THE SECOND RESPONDENT TO THE PETITIONER.

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RESPONDENTS' EXHIBITS: NIL

/TRUE COPY/

P.S.TO JUDGE

mbr/

24.07.2018.

DAMA SESHADRI NAIDU, J.

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W.P.(C). No. 11578 of 2018 (V)

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======================================================= Dated this the 19^th day of July, 2018

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JUDGMENT

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The petitioner, a borrower, faced with recovery proceedings, received Ext.P3 notice, dated 14.03.2018, under Section 13(2) of the SARFAESI Act. Now he has approached this Court seeking a direction that he may sell the hypothicated machinery through private negotiations and remit the amount.

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The Bank, as submitted by it's counsel, refuses to accept this proposal. Then the petitioner's counsel submits that the respondent Bank, at least, could take possession of the hypothicated assets and relieve the petitioner of the burden. For this, the Bank's counsel submits that the Bank will have to follow the due process: it will soon take steps under the SARFAESI Act.

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-2-

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W.P.(C). No. 11578 of 2018 (V)

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I reckon that Ext.P3 is only a show cause notice. The

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petitioner can as well reply to the Bank and express his willingness that the assets could be taken over. With

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these observations, I close this writ petition.

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Sd/-

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DAMA SESHADRI NAIDU JUDGE

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das 19.07.2018

K.v.Babu v. Union Bank of India

Case brief

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K.v.Babu v. Union Bank of India

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