Disposed

Mr. Shafi Adattil, v. Can Fin Homes Ltd.

Kerala HC14 Dec 2023WP(C)/24124/2023

Case brief

AI extract

What is this about?

The High Court disposed of a writ petition challenging coercive proceedings for recovery of a financial default. It granted the petitioner six months to clear dues in installments, deferring coercive action regarding asset auction if payments are made, otherwise reserving liberty to the respondent to proceed.

What did the court decide?

Relief: Petitioner granted six months to clear dues in monthly installments; coercive proceedings deferred if paid; otherwise respondent may continue proceedings.

Mr. Shafi Adattil, Vs Can Fin Homes Ltd. — Contract and Commercial Disputes | 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 N.NAGARESH

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THURSDAY, THE 14^TH DAY OF DECEMBER 2023 / 23RD AGRAHAYANA, 1945

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WP(C) NO. 24124 OF 2023

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PETITIONER:

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MR. SHAFI ADATTIL, AGED 53 YEARS S/O.ABDUL RAHMAN, AL MAS, POOKAD, CHEMANCHERY, KOZHIKODE, KERALA, PIN – 673304

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BY ADVS. E.A.BIJUMON MALAVIKA MARY THOMAS

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RESPONDENTS:

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CAN FIN HOMES LTD., KT COMMERCIAL COMPLEX, FIRST FLOOR, JAIL ROAD, PUTHIYARA, KOZHIKODE, KERALA-673004, REPRESENTED BY ITS AUTHORIZED OFFICER.

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BY ADV C.AJITH KUMAR

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO.24124 OF 2023 2

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JUDGMENT

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Dated this the 14^th day of December, 2023

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The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the Can Fin Homes Limited to the petitioner, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

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The respondent paid loan of ₹30 lakhs to the petitioner in the year 2017. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, he could not pay the repayment instalments promptly later due to Covid-19 pandemic, he lost his job. The repayment of loans fell into arrears. It happened due to reasons beyond the control of the petitioner.

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Though the petitioner requested the respondent to permit the petitioner to repay the overdue amounts in easy

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WP(C) NO.24124 OF 2023 3

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monthly instalments, the respondent authorities were not yielding. The authorities, instead started coercive proceedings invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the Security Interest (Enforcement) Rules, 2002 and issued Ext.P6 notice.

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The petitioner states that he is still in a position to clear the overdue amounts towards the loan, if sufficient time is given to clear the dues in easy monthly instalments. If the respondent is permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioner, he will be put to untold hardship and loss.

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Standing Counsel entered appearance on behalf of the respondent and denied all the statements made by the petitioner. On behalf of the respondent, it is submitted that the loans were given to the petitioner in the year 2017. The petitioner committed default in repaying the loans.

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WP(C) NO.24124 OF 2023 4

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The respondent repeatedly reminded the petitioner and required her to clear the dues. The petitioner deliberately omitted to do so. In the circumstances, the respondent had no other go than to proceed against the petitioner invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The impugned Ext.P6 notice was issued in these circumstances. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the respondent.

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The Standing Counsel, however, submitted that if the petitioner is ready and willing to make a substantial payment soon and remit the balance overdue amount immediately thereafter, a short breathing time can be granted to the petitioner to clear the dues. The Standing Counsel submitted that the outstanding amount due to the respondent from the petitioner as on 14.12.2023 is ₹ 9,92,774/-.

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I have heard the counsel for the petitioner and the

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Standing Counsel representing the respondent.

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WP(C) NO.24124 OF 2023 5

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The specific case of the petitioner is that the petitioner has been making the repayment and maintaining the loan account initially. The default in repayment of the loan occurred lately due to reasons beyond the control of the petitioner. The petitioner has provided substantial security which will safeguard the interest of the respondent.

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In the facts and circumstances of the case, I am inclined to dispose of the writ petition giving a short and reasonable time to the petitioner to clear off the liability.

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The writ petition is therefore disposed of with the following directions:

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(i) The petitioner shall remit the outstanding amount of ₹9,92,774/- in six consecutive and equal monthly instalments along with accruing interest and other administrative charges, if any. First of such instalments shall be paid on or before 15.01.2024.

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WP(C) NO.24124 OF 2023 6

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(ii) If the petitioner commits default in making payments as directed above, the respondent will be at liberty to continue with the coercive proceedings against the petitioner in accordance with law. No further time will be granted to the petitioner to pay the installments. (iii) If the petitioner makes payments as directed above, coercive proceedings, if any, against the petitioner shall stand deferred.

Sd/-

N.NAGARESH

JUDGE

hmh

WP(C) NO.24124 OF 2023 7

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APPENDIX OF WP(C) 24124/2023

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PETITIONER EXHIBITS

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Exhibit P1 TRUE COPY OF THE JUDGMENT DATED 30.08.2019 IN WP(C) 23596/2019. Exhibit P2 TRUE COPY OF THE JUDGMENT IN RP NO. 537/2021 DATED 09.09.2021. Exhibit P3 TRUE COPY OF THE ORDER IN I A NO. 1/2022 IN RP NO. 537/2022 DATED 12/08/2022. Exhibit P4 TRUE COPY OF THE ORDER IN S A NO. 72/2023 DATED 24/05/2023. Exhibit P5 TRUE COPY OF THE JUDGMENT DATED 06/06/2023 IN W.P(C) NO.18215/2023. Exhibit P6 TRUE COPY OF THE ADVOCATE COMMISSIONER NOTICE DATED 30/06/2023. Exhibit P7 TRUE COPY OF THE REQUEST LETTER DATED 13.03.2023 SUBMITTED BEFORE THE RESPONDENT.

Mr. Shafi Adattil, v. Can Fin Homes Ltd.

Case brief

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Mr. Shafi Adattil, v. Can Fin Homes Ltd.

Case brief

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