Petitioner transferred term loan liability but owed cash credit/overdraft. Since bank took symbolic possession under SARFAESI but no auction steps, court directed petitioner to approach bank for regularization if permissible.
Petitioner directed to approach the bank; bank directed to take steps to regularize loan account if permissible.
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WP(C).No.517 OF 2020(L)
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE AMIT RAWAL
MONDAY, THE 10TH DAY OF FEBRUARY 2020 / 21ST MAGHA, 1941
WP(C).No.517 OF 2020(L)
PETITIONER/S:
A.K.ALI, AGED 53 YEARS
S/O UMMER, RAFNETH MAHAL, KARAPPUZHA P.O.KOTTAYAM, PROPRIETOR, ALIS RIYA PROVISIONAL STORES NO XVII/548, KANDATHIL BLDG, TEMPLE ROAD, KOTTAYAM, PIN-686 001.
BY ADV. SRI.R.MURALEEDHARAN
RESPONDENT/S:
1 M/S ALLAHABAD BANK, BENNYS TOWERS, SASTRI ROAD, KOTTAYAM, PIN-686 001. (BR.CODE 02315),REPRESENTED BY THE BRANCH MANAGER.
2 AUTHORIZED OFFICER/CHIEF MANAGER, ALLAHABAD BANK, ZONAL OFFICE, CHENNAI, VAIRAMS, 112, SIR THYAGARAYA ROAD, T. NAGAR, CHENNAI, PIN600017, TAMIL NADU.
R1-2 BY ADV. SRI.K.P.RAMACHANDRAN
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10.02.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No.517 OF 2020(L)
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JUDGMENT
Learned Counsel for the petitioner submitted that against the outstanding amount of term loan petitioner has already cleared the entire liability, but against the cash credit facility and overdraft facility, there are certain amounts due. Though the bank had taken the proceedings under Section 13(4) of SARFAESI Act 2002, but only symbolic possession. This Court specifically raised a query whether the Bank has taken any steps under Section 14(3) of the SARFAESI Act or called any advertisement for inviting bids or auction of the property, the answer was in negative. It is also submitted that petitioner is willing to clear all the outstanding amounts pertaining to the proceedings of the bank.
WP(C).No.517 OF 2020(L)
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take necessary steps to regularise the loan account, if
permissible.
The writ petition is disposed of accordingly.
AMIT RAWAL
JUDGE
Jm/
WP(C).No.517 OF 2020(L)
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APPENDIX
PETITIONER'S/S EXHIBITS:
EXHIBIT P1 TRUE COPY OF THE STATEMENT OF ACCOUNT OBTAINED FROM THE 1ST RESPONDENT DATED 2.1.2010 IN RESPECT OF TERM LOAN ACCOUNT EXHIBIT P2 TRUE COPY OF THE STATEMENT OF ACCOUNT OBTAINED FROM THE 1ST RESPONDENT DATED 2.1.2020 IN RESPECT OF CASH CREDIT ACCOUNT EXHIBIT P3 TRUE COPY OF THE NOTICE ISSUED BY THE 2ND RESPONDENT UNDER SEC 13 (3) DATED 22.7.2019 EXHIBIT P4 TRUE COPY OF THE NOTICE ISSUED BY THE 2ND RESPONDENT UNDER SEC 13(4) DATED 23.10.2019 EXHIBIT P5 TRUE COPY OF THE APPLICATION FILED BY THE PETITIONER REQUESTING TIME TO CLOSE DOWN THE LOAN ACCOUNTS DATED 10.12.2019
1 issue framed by the court
Whether the court should allow the petitioner to approach the bank to regularize the loan account.
A.K. Ali
M/s Allahabad Bank
Amit Rawal
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
