High Court dismissed a writ appeal against the dismissal of a writ petition. The High Court held that there was no jurisdiction to interfere with SARFAESI Act proceedings or alter contractual loan terms via Article 226. The impugned judgment was found to be correct.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE THE CHIEF JUSTICE MR.S.MANIKUMAR
&
THE HONOURABLE MR. JUSTICE SHAJI P.CHALY
TUESDAY, THE 28TH DAY OF JANUARY 2020 / 8TH MAGHA, 1941
WA.No.156 OF 2020
AGAINST THE JUDGMENT DATED 15.01.2020 IN WP(C) NO. 33586/2019(W) OF HIGH COURT OF KERALA
APPELLANTS/PETITIONERS:
1 SUMA G.P., AGED 48, W/O. STEPHAN G., RESHMA HOUSE, GANGA NAGAR, PAPPANAMKOD, THIRUVANANTHAPURAM DISTRICT, PIN 695 018 (PROPRIETOR M/S. ANNA EXIM, TC.53/964 PAPPANAMKOD, THIRUVANANTHAPURAM DISTRICT-695 018.)
4 STEPHAN C., AGED 55, S/O. CHELLAPPAN, RESHMA HOUSE,PAPPANAMKOD, THIRUVANANTHAPURAM DISTRICT, PIN-695018.
BY ADV. SMT.PRAISHEEL PRAKASAM
RESPONDENT/RESPONDENT:
THE AUTHORISED OFFICER AND THE ASST. VICE PRESIDENT, THE FEDERAL BANK LTD., FEDERAL TOWERS, STATUTE, THIRUVANANTHAPURAM-695001.
BY ADV.SRI.SUNIL SHANKAR
THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 28.01.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.A.No.156 OF 2020
2
JUDGMENT
S.Manikumar, CJ.
Instant appeal is filed against judgment dated 15.01.2020 in W.P.(C) No.33586 of 2019, by which writ court declined to grant the reliefs sought for in the writ petition and consequently, dismissed the same.
2. Short facts leading to the appeal are that,-
Petitioner No.1/appellant No.1 availed a loan from Federal Bank Limited, Thiruvananthapuram, in 2015, wherein the rest of the petitioners/ appellant Nos.2, 3 and 4 stood as guarantors. They contended that though the 1st appellant serviced the loan and paid back significantly, the respondent bank has declared the account as Non Performing Asset. Thereafter, the bank has obtained an order from the learned Chief Judicial Magistrate, Thiruvananthapuram, for taking possession of the property pledged with them and the petitioners/appellants were vacated from their residence. Hence, the appellants filed W.P.(C) No.33586 of 2019 for the following reliefs:
(a) “Give a direction to the respondent to keep the coercive proceedings against the petitioners in abeyance and permit them to pay the loan amount in monthly equated installments without hampering the business and family life.
(b) Permit the petitioners to pay the defaulted amount in installments and to direct the respondent to regularise their loan amount.”
W.A.No.156 OF 2020
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15.01.2020, dismissed the writ petition by observing thus:
“After hearing both sides, this Court is confident with serious jurisdictional limitations in exercise of discretion under Article 226 of the Constitution of India, while dealing with the impugned proceedings arising out of the SARFAESI Act. In the light of these aspects, it will not be right and proper on the part of this Court to interdict in this matter (sought for the discretionary powers conferred in writ proceedings). The above application is bereft of any merit and the same will stand dismissed.”
other grounds:
available on record.
W.A.No.156 OF 2020
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We find no error in the judgment dated 15.01.2020 passed in W.P.(C) No.33586 of 2019 and, therefore, writ appeal is dismissed. No costs.
Sd/S.MANIKUMAR CHIEF JUSTICE
Sd/SHAJI P.CHALY JUDGE
KRJ.1/2
3 issues framed by the court
Whether the writ court erred in declining to interfere with SARFAESI proceedings and dismiss the writ petition.
Whether Article 226 jurisdiction can be used to alter contractual terms between a bank and its borrower.
Whether the high court can direct the bank to regularize the loan amount through installments.
2 provisions across 2 enactments
Suma G.P.
Riju J.S.
Haridas B.
Stephan C.
The Authorised Officer and the Asst. Vice President, The Federal Bank Ltd.
S.Manikumar
Shaji P.Chaly
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
