Dismissed

Mohammed Rafi. M., v. Urban Co- Operative Bank Limited

Kerala HC20 Jul 2023WP(C)/1066/2023

Case brief

AI extract

What is this about?

Petitioners challenged the initiation of recovery proceedings by a bank under the SARFAESI Act, seeking instalment facilities due to pandemic disruptions. The Court held no extraordinary circumstances existed. It dismissed the writ, reiterating that High Courts should not interfere with such proceedings absent extreme situations.

What did the court decide?

Writ petition dismissed, directing petitioners to pursue statutory remedies.

Mohammed Rafi. M., Vs Urban Co- Operative Bank Limited — Banking and Recovery | Kerala HC (2023)

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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 C.S.DIAS

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THURSDAY, THE 20^TH DAY OF JULY 2023 / 29TH ASHADHA, 1945

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WP(C) NO. 1066 OF 2023

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PETITIONERS:

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1 MOHAMMED RAFI. M., AGED 43 YEARS S/O. ENI, AMBALI HOUSE, POOLAPEES, OORAKAM, MELMURI P.O, MALAPPURAM., PIN – 676519

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2 JAFAR. K.C., AGED 46 YEARS S/O. AHAMMED, KILAYIL HOUSE, NANNAMUKKU P.O, PALLIKKARA, MALAPURAM DISTRICT-679575., PIN – 679575

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BY ADV RAFEEK. V.K.

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RESPONDENTS:

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1 URBAN CO-OPERATIVE BANK LIMITED, REP. BY ITS AUTHORIZED OFFICER, ANGADIPPURAM BRANCH, PERINTHALMANNA, MALAPPURAM., PIN – 679322

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2 BRANCH MANAGER, URBAN CO- OPERATIVE BANK LIMITED, ANGADIPPURAM BRANCH, PERINTHALMANNA, MALAPPURAM-679322., PIN – 679322

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BY ADVS.JAYASREE K.P. JOHN JOSEPH

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20.07.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 1066 OF 2023

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JUDGMENT

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Dated this the 20^th day of July 2023

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The writ petition is filed to direct the respondents to permit the petitioners to pay the overdue amount in instalments and regularise the loan account.

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The petitioners’ case is that, the second petitioner had availed financial assistance from the second respondent – Bank. The first petitioner was the guarantor of the loan. The petitioners have mortgaged and created an equitable mortgage of their properties in favour of the second respondent. Due to Covid-19 pandemic and reasons beyond their control, they could not pay the instalments on time. The respondents have now proceeded against the secured assets under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (in short, ‘Act’). The petitioners are willing

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WP(C) NO. 1066 OF 2023

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to pay the overdue amount in instalments and regularise the loan account. Hence, the writ petition.

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Heard; Sri.Rafeek, the learned counsel appearing for the petitioners and Smt.Jayasree.K.P., the learned counsel appearing for the respondents.

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Smt.Jayasree.K.P., on instructions, submitted that the outstanding amount as on today is Rs.3,56,47,049/-. The petitioners have not paid a single rupee towards the repayment of the loan. The respondents are not willing to extend any instalment facility to the petitioners due to enormous outstanding amount. Hence, the writ petition may be dismissed.

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The Hon’ble Supreme Court in South Indian Bank Ltd vs. Naveen Mathew Philip [2023 LiveLaw (SC) 320], after adverting to a myriad of earlier judicial pronouncements rendered under the Act, has categorically declared that High Courts shall not, unless in extra ordinary circumstances, interfere with

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WP(C) NO. 1066 OF 2023

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proceedings initiated under the Act, in writ proceedings under Article 226 of the Constitution of India.

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Having considered the pleadings and materials on record and taking note of the submissions made by the respective counsel appearing for the parties, I find no extra ordinary circumstances to entertain the writ petition by exercising the discretionary powers of this Court. Nonetheless, it will be up to the petitioners to work out their statutory remedies in accordance with law.

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Resultantly, the writ petition is dismissed, without prejudice to the right of the petitioners to work out their remedies, in accordance with law.

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SD/C.S.DIAS JUDGE

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jes

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WP(C) NO. 1066 OF 2023

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APPENDIX OF WP(C) 1066/2023