Allowed

M/S Sree Krishna Coir Works, v. the Chief Manager, (Authorized Officer)

Kerala HC29 Mar 2023WP(C)/3869/2023

Case brief

AI extract

What is this about?

The High Court of Kerala, addressing a writ petition regarding SARFAESI proceedings, allowed the petitioners to clear dues in 12 monthly instalments. The court ordered enforcement proceedings to be kept in abeyance contigend on timely repayment of cash credit and term loan defaults.

What did the court decide?

Recovery proceedings under Section 13(2) SARFAESI Act kept in abeyance pending payment of dues in 12 monthly instalments; default leads to cancellation of facility and resumption of recovery.

M/S Sree Krishna Coir Works, Vs the Chief Manager… — Insolvency and Bankruptcy | 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 ZIYAD RAHMAN A.A.

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WEDNESDAY, THE 29^TH DAY OF MARCH 2023 / 8TH CHAITHRA, 1945

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WP(C) NO. 3869 OF 2023

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PETITIONERS:

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1 M/S SREE KRISHNA COIR WORKS, AGED 49 YEARS REPRESENTED BY ITS PROPRIETOR, BIJUMON DASAN, S/O DASAN, THEKKE KANAKA VELIYIL, PANAVALLY VILLAGE, POOCHAKKAL P.O.,CHERTHALA THALUK, ALAPPUZHA DISTRICT. PIN-688526., PIN - 688526

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2 BIJUMON DASAN, AGED 49 YEARS S/O. DASAN, THEKKE KANAKA VELY, PANAVALLY VILLAGE, POOCHAKKAL P.O, CHERTHALA THALUK, ALAPPUZHA DISTRICT. 688526.

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3 PREENA BIJU, AGED 45 YEARS W/O. BIJUMON DASAN, MANGALASSERIL, THEKKE KANAKA VELIYIL, PANAVALLY VILLAGE, POOCHAKKAL P.O, CHERTHALA THALUK, ALAPPUZHA DISTRICT- 688526.

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4 REMANI, AGED 65 YEARS D/O. AMBUJAKSHI, THEKKE KANAKA VELIYIL, PANAVALLY VILLAGE, POOCHAKKAL P.O., CHERTHALA THALUK, ALAPPUZHA DISTRICT-688526. BY ADV P.V.DILEEP

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RESPONDENTS:

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1 THE CHIEF MANAGER, (AUTHORIZED OFFICER), INDIAN OVERSEAS BANK, VSV BUILDING, CCNB ROAD, ALAPPUZHA DISTRICT, PIN-688011., PIN - 688011

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2 THE BRANCH MANAGER, INDIAN OVERSEAS BANK, ALAPPUZHA BRANCH, VSV BUILDING, CCNB ROAD, ALAPPUZHA DISTRICT-688011 BY ADVS. SRI.SUNIL SHANKAR, SC, INDIAN OVERSEAS BANK SUNIL SHANKER VIDYA GANGADHARAN SANDHRA.S

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29.03.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) No.3869/2023

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JUDGMENT

Dated this the 29^th day of March, 2023

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The 1^st petitioner is a proprietary concern of the 2^nd

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petitioner. The third petitioner is the wife of the 2^nd petitioner and the 4^th petitioner is the mother of the 2^nd petitioner. The 2^nd petitioner, for the purpose of the business, availed a cash credit facility and three term loans from the respondent bank. Similarly, the 3^rd petitioner availed another cash credit facility and three term loans from the respondent bank.

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However, in all the aforesaid accounts, there occurred

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default on the part of the petitioners in repayment, which compelled the respondent bank to initiate recovery proceedings against the petitioners by invoking the provisions under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act. As part of the said proceedings, Ext.P1 notice under Section 13(2) of the Act is issued against the petitioners. This writ petition is submitted in such circumstances seeking for a direction to the respondents to

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WP(C) No.3869/2023

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permit the petitioners to clear the liabilities in easy instalments.

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Heard Sri. P.V. Dileep, the lerned counsel appearing

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for the petitioners and Sri. Sunil Shanker, the learned counsel appearing for the respondents.

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The limited prayer put forward by the learned counsel for the petitioner is that, he may be permitted to clear the entire amounts payable towards the cash credit facilities availed by the 2^nd and 3^rd respondents in instalments. At the same time, he also seeks for an opportunity to regularise the term loans by paying the amount towards the overdue charges.

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On the other hand the learned counsel appearing for

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the respondents would submit that, as regards the cash credit facility availed by the 2^nd petitioner, the total amount due is 37,76,000/- as on 20.03.2023 and the total overdue amount in respect of the three term loans availed by the 2<sup>nd</sup> petitioner 5,78,000/-. Similarly, the total outstanding amount towards the cash credit facility availed by the third petitioner is 20,34,000/whereas the total overdue amount in respect of the term loan is 5,69,000/- as on 20.03.2023. It is pointed out that if the petitioner remits the said amount in instalments, the term loans

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WP(C) No.3869/2023

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can be regaularised and the cash credit facility can be finally settled.

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Considering the facts and circumstances, I deem it appropriate to dispose of this writ petition considering the limited prayer sought for by the petitioner in the following terms:

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The petitioners shall pay the amount towards respective cash credit facilities, in 12 equal monthly instalments commencing from 30.04.2023. Similarly, the petitioner shall pay the overdue charges in respect of the respective term loans availed by them in 12 equal monthly instalments commencing from 30.04.2023 along with the regular monthly instalments payable in respect of the said loan transactions. Subject to the payments as above, the recovery proceedings initiated against them shall be kept in abeyance. However, it is clarified that in case of default of any of the payments as above, the aforesaid facility shall stand cancelled and in such an event, it shall be open for the respondents to proceed with the recovery, from the point it was stopped.

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Sd/ZIYAD RAHMAN A.A. JUDGE

ncd

WP(C) No.3869/2023

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APPENDIX OF WP(C) 3869/2023

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PETITIONER EXHIBITS Exhibit-P1 A TRUE COPY OF THE NOTICE ISSUED BY THE 1ST RESPONDENT UNDER SECTION 13(2) OF THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT PUBLISHED IN MALAYALA MANORAMA DAILY DATED 02.02.2023.

M/S Sree Krishna Coir Works, v. the Chief Manager, (Authorized Officer)

Case brief

What is this about?

What did the court decide?

M/S Sree Krishna Coir Works, v. the Chief Manager, (Authorized Officer)

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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