Disposed

K.P. Priji, v. Hdb Financial Services Ltd.

Kerala HC18 Feb 2021WP(C)/4144/2021

Case brief

AI extract

What is this about?

In this writ petition, the petitioner contested coercive recovery action under the SARFAESI Act due to financial distress caused by the pandemic. The High Court ordered the bank to suspend enforcement if the petitioner paid Rs. 15 lakhs by March 2021 and cleared the balance within 12 months.

What did the court decide?

Directing the bank to keep recovery proceedings in abeyance if Rs. 15 lakhs is paid by March 2021 and the remaining balance is cleared in 12 equated monthly instalments.

K.P. Priji, Vs Hdb Financial Services Ltd. — Banking and Recovery | Kerala HC (2021)

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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 A.M.BADAR

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THURSDAY, THE 18TH DAY OF FEBRUARY 2021 / 29TH MAGHA,1942

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WP(C).No.4144 OF 2021(P)

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PETITIONER/S:

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K.P. PRIJI, AGED 56 YEARS, S/O.LATE B.PRABHAKARAN, RESIDING AT 374/2, VENMALAR, NEAR AMMAN KOVIL, NEDUMANGADU, THIRUVANANTHAPURAM DISTRICT, PIN-695541.

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BY ADVS. SRI.J.R.PREM NAVAZ SHRI.SUMEEN S.

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RESPONDENT/S:

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1 HDB FINANCIAL SERVICES LTD., HAVING ITS REGISTERED OFFICE AT RADHIKA, 2ND FLOOR, LAW GARDEN ROAD, NAVARANGPURA, AHMEDABAD, 380009, HAVING ITS BRANCH OFFICE AT “SPRINGS”, 1ST FLOOR, NEAR RELIANCE FRESH, EDAPPAZHANJI, THYCAUD P.O., THIRUVANANTHAPURAM DISTRICT, PIN-695014.

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2 AUTHORIZED OFFICER UNDER SARFAESI ACT, HDB FINANCIAL SERVICES LTD., “SPRINGS”, 1ST FLOOR, NEAR RELIANCE FRESH, EDAPPAZHANJI, THYCAUD P.O., THIRUVANANTHAPURAM DISTRICT, PIN-695014.

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SC- SRI. PRADEESH CHACKO

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 18.02.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C).No.4144 OF 2021

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JUDGMENT

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Dated this the 18th day of February 2021

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Heard both sides.

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2. Learned Counsel for the petitioner submits

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that the petitioner has availed financial assistance from the 1^st respondent bank, but due to outbreak of Covid-19 pandemic, his textile business suffered a lot causing financial crunch. Thereafter, the loan amount has been termed as Non Performing Asset. According to learned Counsel for the petitioner, action under SARFAESI Act is not challenged in the instant petition, but the petitioner wants to clear the overdue amount in suitable instalments.

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2. Learned Counsel for the respondents opposed the petition by contending that two loans for Rs.2 crores were taken and since last one year, there is no repayment. It is argued that total outstanding amount as on date is Rs.41,85,316/- (Rupees Forty One Lakhs Eighty Five Thousand Three Hundred and Sixteen

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WP(C).No.4144 OF 2021

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only) and if half of the amount is paid by the petitioner by the end of March 2021, the respondents may consider keeping the action under the SARFAESI Act in abeyance.

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3. I have considered the submission so advanced and also perused the duly sworn memo of petition.

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4. The textile business of the petitioner seems to have suffered due to outbreak of Covid-19 pandemic causing financial constraints. But, even then the respondents are interested in recovering the entire amount as seen from the argument of the learned Counsel for the respondents. Hence, the petition is disposed of with the following directions:

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i) the petitioner to pay an amount of Rs.15 lakhs towards the discharge of his liability to the respondents by the end of March 2021, and he should repay the balance outstanding amount of loans in 12 equated monthly instalments commencing from 21.04.2021.

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ii) if the petitioner abides by the above said direction, then the respondents shall keep the coercive action taken under

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WP(C).No.4144 OF 2021

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SARFAESI Act against the petitioner in abeyance.

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iii) a single default on the part of the petitioner in compliance with this direction shall entitle the respondents to continue with the action under the SARFAESI Act against the petitioner.

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iv) no further extension of time shall be granted to the petitioner for compliance of this direction.

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The writ petition is disposed of accordingly.

Sd/-

A.M.BADAR

JUDGE

18.2.2021

WP(C).No.4144 OF 2021

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APPENDIX

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PETITIONER'S/S EXHIBITS:

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EXHIBIT P1 THE TRUE COPY OF THE NOTICE ISSUED TO THE PETITIONER DATED 14.09.2020 UNDER SECTION 13(2) OF THE SARFAESI ACT.

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EXHIBIT P2 THE TRUE COPY OF THE ORDER DATED 17.12.2020 IN M.C.NO.699 OF 2020 PASSED BY THE CJM, THIRUVANANTHAPURAM.

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EXHIBIT P3 THE TRUE COPY OF THE NOTICE ISSUED TO THE PETITIONER DATED 10.02.2020 BY THE ADVOCATE COMMISSIONER.

K.P. Priji, v. Hdb Financial Services Ltd.

Case brief

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K.P. Priji, v. Hdb Financial Services Ltd.

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