Disposed

Abdulkhader C.P., v. South Indian Bank Limited

Kerala HC22 May 2024WP(C)/2109/2024

Case brief

AI extract

What is this about?

The court disposed of a writ petition where the petitioner challenged notices under the SARFAESI Act issued by a bank for loan defaults. The court directed the petitioner to propose a One Time Settlement within two weeks; if approved, coercive proceedings would stand deferred, and redemption of a gold loan would follow loan settlement.

What did the court decide?

Petitioner directed to propose One Time Settlement within two weeks; coercive proceedings deferred till bank's decision; gold loan redemption permitted post-settlement.

Abdulkhader C.P., Vs South Indian Bank Limited — Banking and Recovery | Kerala HC (2024)

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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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WEDNESDAY, THE 22ND DAY OF MAY 2024 / 1ST JYAISHTA, 1946

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WP(C) NO. 2109 OF 2024

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PETITIONER:

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ABDULKHADER C.P.,
AGED 55 YEARS
S/O. KOYAN PAREETH, CHATHANATTU HOUSE, PARAPPURAM,
PERUMBAVOOR PO, ERNAKULAM,
PIN – 683542

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BY ADVS.
BOBY THOMAS
WINSTON K.V

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RESPONDENTS:

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1 SOUTH INDIAN BANK LIMITED, REGIONAL OFFICE ERNAKULAM, INFO-PARK ROAD, KAKKANAD, ERNAKULAM, REPRESENTED BY ITS AUTHORISED FFICER, PIN - 682039

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2 SOUTH INDIAN BANK LIMITED, PERUMBAVOOR BRANCH OPPOSITE GOVERNMENT HOSPITAL, A.M ROAD, PERUMBAVOOR, ERNAKULAM, REPRESENTED BY ITS BRANCH MANGER, PIN – 683542

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BY ADV P.A.AUGUSTINE(AREEKATTEL)

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
22.05.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) No.2109 Of 2024

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JUDGMENT

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Dated this the 22^nd day of May, 2024

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The petitioner, who has availed financial assistance

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from the 1^st respondent-Bank, has approached this Court aggrieved by the proceedings initiated by the Bank invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,

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The petitioner sought for the following reliefs:-

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“(I) Calls for the records leading to Exhibits-P1, P2 & P5 and quash them issuing a writ in the nature of certiorari;

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(II) Issue a writ of mandamus, order or direction commanding respondents to consider and pass appropriate orders on Exhibits-P3 & P4 representations after hearing the petitioner;

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(III) Issue a writ of mandamus, order or direction commanding respondents to permit the petitioner to regularize Cash Credit Loan account availed by the petitioner;

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(IV) Issue a writ of mandamus, order or direction commanding respondents to change the status of the gold as NPA availed by the petitioner.”

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WP(C) No.2109 Of 2024

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Standing Counsel entered appearance on behalf of the respondents and resisted the writ petition. The Standing Counsel pointed out that against a Cash Credit loan of 6 lakhs advanced to the petitioner in the year 2020₹ and another gold loan of 6,13,000/-, the total outstanding₹ amount payable by the petitioner would exceed 12 lakhs.₹ The petitioner has not been maintaining the loan account properly in spite of the repeated reminders of the Bank. In the circumstances, the Bank had no other go than to invoke the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

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I have heard the learned counsel for the petitioner

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and the learned Standing Counsel representing the respondents.

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This Court passed an interim order in the writ petition on 26.02.2024 directing the petitioner to remit an

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WP(C) No.2109 Of 2024

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amount of ₹3 lakhs on or before 25.03.2024. The said

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amount was paid. Subsequently on 12.04.2024, this Court directed the petitioner to remit a further amount of 1 lakh₹

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within a period of one month. The petitioner could not remit the said amount till date.

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Taking into consideration the facts, I am of the view that the petitioner can be permitted to approach the Bank for a One Time Settlement for any other arrangement for repayment of loan.

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The writ petition is accordingly disposed of directing that if the petitioner makes a proposal for One Time Settlement of the Cash Credit Loan account within a period of two weeks from today, the Bank shall take appropriate decision thereon within a further period of four weeks. If the petitioner makes an application for One Time Settlement within a period of two weeks, coercive proceedings against the petitioner shall stand deferred till the Bank takes a

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WP(C) No.2109 Of 2024

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decision on the proposal. If the petitioner settles the Cash Credit Loan account, then the petitioner can approach the

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Bank to redeem the gold loan.

Sd/-

N.NAGARESH

JUDGE

hmh

WP(C) No.2109 Of 2024

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APPENDIX OF WP(C) 2109/2024

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PETITIONER EXHIBITS

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Exhibit P1A TRUE COPY OF NOTICE ISSUED BY THE
2ND RESPONDENT TO THE PETITIONER DATED
13.12.2023
Exhibit P2A TRUE COPY OF NOTICE ISSUED BY THE
2ND RESPONDENT TO THE PETITIONER DATED
13.12.2023
Exhibit P3A TRUE COPY OF REPRESENTATION ISSUED
BY THE PETITIONER TO THE FIRST
RESPONDENT DATED 18.12.2023
Exhibit P4A TRUE COPY OF REPRESENTATION ISSUED
BY THE PETITIONER TO THE SECOND
RESPONDENT DATED 18.12.2023
Exhibit P5A TRUE COPY OF NOTICE UNDER 13(2) OF
SARFAESI ACT ISSUED BY THE FIRST
RESPONDENT TO THE PETITIONER DATED
26.12.2023

Abdulkhader C.P., v. South Indian Bank Limited

Case brief

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Abdulkhader C.P., v. South Indian Bank Limited

Case brief

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