Allowed

Shanavas V.P. v. State of Kerala

Kerala HC15 Feb 2022WP(C)/4334/2022

Case brief

AI extract

What is this about?

In a writ petition regarding coercive recovery proceedings initiated by a bank under the SARFAESI Act, the Court granted the petitioner an opportunity to clear dues. Directions were issued to remit a specific amount within one month and pay the balance in equal monthly instalments, with the threat of resuming proceedings upon two consecutive defaults.

What did the court decide?

Petitioner to pay ₹2,00,000 within one month and balance overdue in ten equal monthly instalments; proceedings against petitioner if two consecutive defaults occur.

Shanavas V.P. Vs State of Kerala — 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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TUESDAY, THE 15^TH DAY OF FEBRUARY 2022 / 26TH MAGHA, 1943

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WP(C) NO. 4334 OF 2022

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PETITIONER:

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SHANAVAS V.P., AGED 47 YEARS, S/O. SHOUKATHALI, VALIYAPEEDIKAKKAL HOUSE, POOKOTTUMPADAM POST, AMARAMBALAM, NILAMBUR TALUK, MALAPPURAM DISTRICT – 679332.

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BY ADV E.C.AHAMED FAZIL

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RESPONDENTS:

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1 STATE OF KERALA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF REVENUE, SECRETARIAT, THIRUVANANTHAPURAM – 695001.

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2 THE DISTRICT COLLECTOR, MALAPPURAM, CIVIL STATION, MALAPPURAM – 676505.

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3 THE DEPUTY COLLECTOR (RR), MALAPPURAM, CIVIL STATION, MALAPPURAM – 676505.

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4 THE DEPUTY TAHSILDAR (RR), NILAMBUR, MINI-CIVIL STATION, NILAMBUR, MALAPPURAM -679329.

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5 CANARA BANK, WANDOOR BRANCH BUSHRA BUILDING, MANJERI-WANDOOR ROAD, WANDOOR MALAPPURAM DISTRICT, - 676552, REPRESENTED BY ITS AUTHORIZED OFFICER. BY ADV. SHRI.M.GOPIKRISHNAN NAMBIAR, SC, CANARA BANK SMT.PARVATHY KOTTOL, GOVERNMENT PLEADER

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.02.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C)No.4334/2022

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JUDGMENT

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Dated this the 15^th day of February, 2022

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The petitioner, who has availed financial assistance from the 5^th respondent-Bank, is before this Court seeking to quash Ext.P3 and to permit the petitioner to pay the amount due in 60 equal monthly instalments.

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The petitioner states that the petitioner availed an MSME loan for ₹25,00,000/- towards establishment and development of a proprietary concern, namely “RIGHT VISION” engaged in lights and sound renting business, in the year 2017. The advance was availed from the 5^th respondent-Bank. Due to Covid-19 pandemic and consequential issues, the petitioner could not remit the monthly instalments promptly. Consequently, the loan

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WP(C)No.4334/2022

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account fell into arrears. The 5^th respondent initiated coercive proceedings as evidenced by Exts.P2 and P3. Aggrieved by the coercive proceedings now initiated by the 5^th respondent, the petitioner is before this Court.

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The learned Standing Counsel for the 5^th respondent entered appearance and submitted that the total outstanding amount of the petitioner is above ₹38 lakhs. The petitioner has consistently defaulted in making monthly payments and therefore the 5^th respondent was forced to take recovery proceedings. Accordingly, Ext.P2 Possession Notice was issued to the petitioner invoking the SARFAESI Act, 2002. Ext.P3 attachment was also made against the petitioner. The action of the 5^th respondent is perfectly legal.

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I have heard the counsel for the petitioner and the Standing Counsel representing the 5^th respondent.

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Hearing the arguments raised on either side, it

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appears that though the petitioner had availed advance, the

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WP(C)No.4334/2022

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petitioner was earnestly making repayment for some time and due to Covid-19 pandemic, there occurred some defaults on the part of the petitioner in making remittances. The learned Standing Counsel for the 5^th respondent submits that the overdue amount payable by the petitioner would come to ₹11,69,081/-. This Court is of the view that the petitioner should be given a reasonable opportunity to clear off the overdue amount.

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In the circumstances, the writ petition is disposed of with the following directions:

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i) The petitioner shall remit an amount of ₹2,00,000/within a period of one month from today.

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ii) The balance overdue amount along with accruing interest shall be paid in ten equal monthly instalments thereafter, along with the regular monthly instalments.

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iii) If the petitioner commits two consecutive defaults

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in paying the monthly instalments as directed above, the

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respondents will be at liberty to proceed against the petitioner

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in accordance with law.

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Sd/- N. NAGARESH JUDGE

APPENDIX OF WP(C) 4334/2022

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PETITIONER'S EXHIBITS:

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Exhibit P1 TRUE COPY OF PASSBOOK OF PETITIONER HEREIN ISSUED FROM CANARA BANK, WANDOOR BRANCH Exhibit P2 TRUE COPY OF POSSESSION NOTICE DATED 02.12.2021 ISSUED BY CANARA BANK, WANDORR BRANCH TO PETITIONER Exhibit P3 TRUE COPY OF DEMAND NOTICE RRC NO. 2021/3287/10 DATED 29.01.2022 ISSUED BY THE DEPUTY TAHSILDAR, NILAMBUR TO PETITIONER.

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Shanavas V.P. v. State of Kerala

Case brief

What is this about?

What did the court decide?

Shanavas V.P. v. State of Kerala

Case brief

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What did the court decide?

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