Petitioners challenged bank's possession notices under the Securitisation Act, arguing for loan regularisation. The Court held that private banks are not 'State', recovery is a commercial decision, and remedies lie with the DRT. Petition dismissed.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
MONDAY, THE 11TH DAY OF DECEMBER 2023/20TH AGRAHAYANA, 1945
WP(C) NO. 29752 OF 2023
PETITIONERS:
1 NAVEEN MATHEW PHILIP AGED 39 YEARS S/O. PHILIP MATHEW, PROPRIETOR M/S. PHILIP GRANO PRODUCTS, NOOROMAVU P.O., MALLAPPALLY WEST, PATHANAMTHITTA THEKKENEDUMPLAKKAL HOUSE, MALLAPPALLY WEST P.O., PATHANAMTHITTA, PIN - 689585
2 CLEA JOSE AGED 35 YEARS W/O. NAVEEN MATHEW PHILIP, THEKKENEDUMPLAKKAL HOUSE, MALLAPPALLY WEST P.O., PATHANAMTHITTA, PIN - 689585
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6 M/S. P.G. ROCK AND CONCRETE PRODUCTS PVT. LTD., REPRESENTED BY ITS MANAGING DIRECTOR NAVEEN MATHEW PHILIP, 126/V, THEKKENEDUMPLAKKAL HOUSE, OPP. CMS LP SCHOOL, MALLAPPALLY WEST P.O., PATHANAMTHITTA, PIN – 689585
BY ADVS. P.HARIDAS BIJU HARIHARAN SHIJIMOL M.MATHEW P.C.SHIJIN ROSHIN MARIAM JACOB RAJASREE T.R.
RESPONDENTS:
2 THE REGIONAL MANAGER, M/S. SOUTH INDIAN BANK LTD 2ND FLOOR, TMJ COMPLEX, RAMANCHIRA, THIRUVALLA, PIN - 689107
3 THE MANAGER, M/S. SOUTH INDIAN BANK LTD MALLAPPALLY BRANCH, KARAKKAL BUILDING CENTRAL JUNCTION, MALLAPALLY-WEST P.O., PATHANAMTHITTA, PIN – 689585
BY ADVS. SUNIL SHANKER VIDYA GANGADHARAN
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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N. NAGARESH, J.
W.P.(C) No.29752 of 2023
Dated this the 11th day of December, 2023
J U D G M E N T
~ ~ ~ ~ ~ ~ ~ ~ ~
The petitioners, aggrieved by the coercive steps
taken by the 1st respondent-Bank against the petitioners, have approached this Court seeking to quash Exts.P12 and P14 and to command the respondent to treat all the loan accounts of the petitioners as regular and to issue formal proceedings regularising such loans.
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purpose of writ jurisdiction. The relief sought for by the petitioners is not in relation to discharge of any public function. The respondents submitted that the petitioners failed to comply with the instalments granted by this Court. The amounts paid by the petitioners have been properly credited to the account. A total amount of ₹3,64,09,997.66 is outstanding in the credit facilities availed by the 1st petitioner for his proprietorship concern. An amount of ₹1,71,54,352.92 is outstanding in the credit facility availed by the 1st petitioner along with the 2nd petitioner. Admittedly, the petitioner has defaulted the repayments and hence the respondent-Bank proceeded with the securitisation measures.
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[Civil Appeal Nos.257-259 of 2022] has reiterated that staying of recovery measures under the Securitisation Act would have serious adverse impact on the financial health of the secured creditor /assignor.
In the facts and circumstances of the case, I do not find any extraordinary circumstances in the case of the petitioners warranting interference by this Court in exercise of the powers under Article 226 of the Constitution of India. The writ petition is therefore dismissed. It is made clear that the petitioners will be at liberty to approach the Debts Recovery Tribunal or the 1st respondent-Bank for redressal of their grievances.
Sd/-
N. NAGARESH, JUDGE
aks/07.12.2023
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APPENDIX OF WP(C) 29752/2023
PETITIONER'S EXHIBITS
Exhibit P1 TRUE COPY OF THE NOTICE DATED 12.08.2021 UNDER 13(2) OF THE SARFAESI ACT Exhibit P2 TRUE COPY OF THE REQUEST SUBMITTED BY THE PETITIONERS DATED 28.10.2021 Exhibit P3 TRUE COPY OF THE JUDGMENT IN WP(C) NO. 23940/2021 OF THIS HON'BLE COURT DATED 02.11.2021 Exhibit P4 TRUE COPY OF THE POSSESSION NOTICE DATED 20.12.2021 UNDER THE SARFAESI ACT Exhibit P5 TRUE COPY OF THE STATEMENT FILED BY THE COUNSEL FOR THE RESPONDENTS IN I.A.NO.1 OF 2022 IN WP(C) NO. 30238/2021 DATED 19.01.2022 BEFORE THIS HONORABLE HIGH COURT OF KERALA Exhibit P6 TRUE COPY OF THE COMMON JUDGEMENT IN WP(C) 30238/2021 AND WP(C) NO. 30450/2021 OF THIS HON'BLE COURT DATED 31.08.2021 Exhibit P7 TRUE COPY OF THE COMMON JUDGMENT IN WA NO. 1492/2022 AND WA NO. 1497/2022 DATED 19.10.2022 Exhibit P8 TRUE COPY OF THE ORDER IN I.A. NO. 1/2022 IN WA NO. 1492/2022 OF THIS HON'BLE COURT DATED 10.11.2022 Exhibit P9 TRUE COPY OF THE JUDGMENT IN SPECIAL LEAVE TO APPEAL (CIVIL) NO. 22021 AND 22022 OF 2022 OF THE HON'BLE SUPREME COURT DATED 17.04.2023 Exhibit P10 TRUE COPY OF THE AFFIDAVIT AND PETITION DATED 02.05.2023 AS IA.NOS. 1/2023,2/2023,3/2023 IN WA. NO. 1497/2022
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| Exhibit P11 | TRUE COPY OF THE ACCOUNT WISE |
|---|---|
| STATEMENTS PERIOD FROM 1-3-2023 TO 31.3.2023 |
|
| Exhibit P11(a) | TRUE COPY OF THE MONTHLY WISE FROM SEPTEMBER, 2021 TO AUGUST, 2023 |
| Exhibit P11(b) | TRUE COPY OF THE YEAR WISE LOAN REPAYMENT DETAILS FROM 1.9.2021 TO 23.8.2023 |
| Exhibit P12 | TRUE COPY OF THE POSSESSION NOTICE UNDER SARFAESI ACT DATED 19.08.2023 |
| Exhibit P13 | TRUE COPY OF THE PHOTOGRAPH OF THE PROPERTY |
| Exhibit P14 | TRUE COPY OF THE TENDER CUM AUCTION SALE NOTICE DATED 19.08.2023 |
| Exhibit P15 | TRUE COPY OF THE COVERING LETTER DATED 04.09.2023 SUBMITTED BY THE 1ST PETITIONER BEFORE THE SENIOR MANAGER OF THE SOUTH BANK, MALLAPPALLY BRANCH |
| Exhibit P16 | TRUE COPY OF THE SCREEN SHOT OF WHATSAPP MESSAGE SENT BY THE 3RD RESPONDENT DATED 04.09.2023 |
| Exhibit P17 | TRUE COPY OF THE JUDGMENT IN CONMT.PET.(C) NOS. 1150-1151/2023 IN C.A. NOS. 2861-2862/2023 OF THE HON'BLE APEX COURT DATED 27.09.2023 |
| Exhibit P18 | TRUE COPY OF THE LETTER OF THE LEARNED ADVOCATE COMMISSIONER APPOINTED BY THE LEARNED A.C.J.M, SPECIAL COURT, AND ERNAKULAM IN M.C.NO.700/2023 DATED 28.10.2023 |
| Exhibit P19 | TRUE COPY OF THE E-MAILS SENT BY THE RESPONDENTS TO THE 1ST PETITIONER DATED 21.09.2023 AND 29.09.2023 |
| Exhibit P20 | TRUE COPY OF THE LETTER DATED 30.10.2023 SUBMITTED BY THE 1ST PETITIONER TO THE 3RD RESPONDENT |
| Exhibit P21 | TRUE COPY OF THE MAIL DATED 10.10.2023 SENT BY THE RESPONDENTS TO THE 1ST PETITIONER |
| Exhibit P22 | TRUE COPY OF THE COVERING LETTER DATED 30.10.2023 SUBMITTED BY THE 1ST PETITIONER TO THE 3RD RESPONDENT |
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Exhibit P23 TRUE COPY OF THE E-MAIL DATED 08.11.2023 SENT BY THE 3RD RESPONDENT TO THE 1ST PETITIONER Exhibit P24 TRUE COPY OF REPLY SUBMITTED BY THE 1ST PETITIONER TO THE 3RD RESPONDENT DATED 08.11.2023
3 issues framed by the court
Whether the lending and recovery measures initiated by a private bank constitute a public function amenable to writ jurisdiction under Article 226.
Whether the issuance of possession notices under the Securitisation Act by a bank can be challenged in this Court while the remedy is available under Section 17.
Whether commercial decisions taken by a private bank regarding loan repayment and recovery are subject to judicial review.
Colour shows how this judgement treated each authority
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As recorded by the court registry
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