Disposed

M/S. P.K. Construction Company v. the Authorized Officer

Kerala HC13 Jan 2022WP(C)/1186/2022

Case brief

AI extract

What is this about?

In a writ petition, the petitioner construction company sought relief from Immediate NPA status by proposing to pay outstanding loan dues in instalments. Hon'ble Court allowed the petitioner to remit an initial lump sum and pay the balance in 12 monthly instalments with a proviso on consecutive defaults.

What did the court decide?

Allowed the petitioner to pay ₹12 lakhs within one month and balance dues in 12 equal monthly instalments, subject to no two consecutive defaults.

M/S. P.K. Construction Company Vs the Authorized Officer — Banking and Recovery | Kerala HC (2022)

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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 N.NAGARESH

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THURSDAY, THE 13^TH DAY OF JANUARY 2022/23RD POUSHA, 1943 WP(C) NO. 1186 OF 2022

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PETITIONER:

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M/S. P.K. CONSTRUCTION COMPANY, XV/111/1, POTTAIKANDATHIL, NEAR NGO QUARTERS, MUVATTUPUZHA, ERNAKULAM DISTRICT, PIN - 686 661 REPRESENTED BY ITS MANAGING PARTNER SRI.KABEER KHAN P.B., AGED 57 YEARS, S/O.P.S.BAVA RAWTHER, RESIDING AT POTTAIKANDATHIL HOUSE, NEAR NGO QUARTERS, MUVATTUPUZHA, ERNKAULAM DISTRICT, PIN - 686 661.

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BY ADVS. NIREESH MATHEW NIJU MATHEW VIVEK VENUGOPAL BABU JOSE SEBIN SEBASTIAN GAJENDRA SINGH RAJPUROHIT DEVAN N.R

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RESPONDENTS:

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1 THE AUTHORIZED OFFICER, CSB BANK LIMITED, 1ST FLOOR, DJM BUILDING, MARKET ROAD, ERNAKULAM, KOCHI - 682 011.

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2 THE BRANCH MANAGER, CSB BANK LIMITED, MUVATTUPUZHA BRANCH, GROUND FLOOR, OMBALAYIL TOWERS, SH-1, OPPOSITE KSRTC BUS STAND, NEAR 130 JUNCTION, THOTTUMKAL PEEDIKA, MUVATTUPUZHA, ERNAKULAM DISTRICT, PIN - 686 661.

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13.01.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C)No.1186/2022

JUDGMENT

Dated this the 13^th day of January, 2022

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The petitioner is a Construction Company. The petitioner has taken certain advances from the respondents. The present outstanding balance payable towards the loan account is `113.22 lakhs, according to the petitioner.

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The respondents are proposing to declare the account of the petitioner as NPA. Therefore, the petitioner prays that the respondents be directed to drop all further proceedings pursuant to Exts.P1 and P4 and permit the petitioner to pay the loan dues in 25 equal monthly instalments.

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On instructions, the learned Standing Counsel representing the respondents submits that the outstanding amount from the petitioner is `1,12,92,469.96 plus accrued interest and other charges as can be seen from Ext.P5.

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WP(C)No.1186/2022

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Taking into consideration the past history of the petitioner, a reasonable time can be granted to the petitioner to wipe off the liabilities.

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I have heard the learned counsel for the petitioner and the learned Standing Counsel representing the respondents.

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Taking into consideration the fact that the petitioner has availed a much higher amount from the Bank and also taking into consideration the Covid-19 pandemic situation prevailing, this Court is of the view that the petitioner can be granted reasonable time to pay off the debt in instalments.

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In such circumstances, the writ petition is disposed of permitting the petitioner to wipe off the liabilities on the following conditions:

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(1) The petitioner shall remit an amount of `12 lakhs within a period of one month and on or before 15.02.2022.

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(2) The balance outstanding amount along with

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accrued interest and other bank charges shall be paid by the petitioner in 12 equal monthly instalments commencing from 15.03.2022.

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(3) If the petitioner commits any two consecutive defaults in remitting the instalments as stated above, the respondents will be at liberty to proceed against the

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petitioner in accordance with law.

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Sd/-

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N. NAGARESH JUDGE

ncd/15.01.2022

APPENDIX OF WP(C) 1186/2022

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PETITIONER'S EXHIBITS

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Exhibit P1 TRUE COPY OF THE LETTER ISSUED BY THE 1ST RESPONDENT DATED 11/10/2021. Exhibit P2 TRUE COPY OF THE REPRESENTATION SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT DATED 25/10/2021. Exhibit P3 TRUE COPY OF THE LETTER ISSUED BY THE EXECUTIVE ENGINEER, PWD ROADS DIVISION, MUVATTUPUZHA TO THE 2ND RESPONDENT DATED 17/11/2021. Exhibit P4 TRUE COPY OF TTHE LETTER ISSUED BY THE 1ST RESPONDENT DATED 15/12/2021. Exhibit P5 TRUE COPY OF THE BANK ACCOUNT STATEMENT SHOWING THE REMITTANCE OF RS.10 LAKHS.

M/S. P.K. Construction Company v. the Authorized Officer

Case brief

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M/S. P.K. Construction Company v. the Authorized Officer

Case brief

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