Disposed

Sreejith C.S v. Yes Bank

Kerala HC11 Jul 2024WP(C)/22818/2024

Case brief

AI extract

What is this about?

A transporter defaulted on a commercial vehicle loan after a Tamil Nadu ban on M-sand transportation affected his business. The court directed that if he remitted Rs.6,00,000 within two weeks and produced the vehicle for inspection, the bank would consider his regularization request in accordance with law.

What did the court decide?

Direction to bank: on remitting Rs.6,00,000 within two weeks and producing the vehicle for inspection, petitioner's regularization request shall be considered per law.

Sreejith C.S Vs Yes Bank — Contract and Commercial Disputes | 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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THURSDAY, THE 11TH DAY OF JULY 2024 / 20TH ASHADHA, 1946
WP(C) NO. 22818 OF 2024

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PETITIONER:

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SREEJITH C.S
AGED 33 YEARS
S/O SURENDRAN C.V, CHERIYAMPARAMBIL, KURUMASSERY P.O,
PARAKKADAVU, ERNAKULAM DISTRICT, PIN - 683579
BY ADVS.
SRI.P.MOHAMED SABAH
SRI.LIBIN STANLEY
SMT.SAIPOOJA
SRI.SADIK ISMAYIL
SMT.R.GAYATHRI
SRI.M.MAHIN HAMZA
SRI.RAYEES P.
SRI.ALWIN JOSEPH
SRI.BENSON AMBROSE
SMT.AISWARYA K.M.

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RESPONDENT:

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YES BANK
KOCHI BRANCH, FIRST FLOOR, PUTHURAN PLAZA,
KPCC JUNCTION, M.G. ROAD, ERNAKULAM, ERNAKULAM
DISTRICT, REPRESENTED BY ITS BRANCH MANAGER,
PIN - 682011
BY ADV
SRI.P.PAULOCHAN ANTONY P -SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
11.07.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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W.P.(C) No.22818 of 2024 2

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N. NAGARESH, J.

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W.P.(C) No.22818 of 2024

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Dated this 11^th day of July, 2024

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JUDGMENT

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The writ petition is filed seeking for issuance of Writ of Mandamus or any other appropriate Writ to the respondent-Bank directing them to regularize the loan account of the petitioner and to allow the petitioner to pay the outstanding liability pertaining to the said loan account in instalments. The petitioner has availed a commercial loan for Rs.4,574,666/- from the respondent-Bank in

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the year 2022 and purchased a Tata Goods Carrier vehicle bearing registration No. KL-63-H-8575.

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The petitioner is running a proprietorship which is engaged in the field of interstate transportation of M-sand, quarrying aggregates and other raw materials which are used for the construction activities in the State of Kerala. At the beginning

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of 2023, the Government of Tamilnadu had prohibited

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W.P.(C) No.22818 of 2024 3

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transportation of M-sand, quarrying aggregates and other raw materials which is essential for construction activities from the State of Tamilnadu to other States and the same has adversely affected the petitioner. The petitioner’s institution is mainly transporting raw materials from the State of Tamilnadu to Kerala and due to the ban, all the work carried out by the petitioner was stopped. Because of the extreme financial problems owing to the aforementioned situation, the petitioner was not able to make regular payments and defaulted in making the payment of interest towards the said loan, over the past few months. Prior to that, the petitioner has been prompt in paying the periodical instalments in connection with the loan account, contends the petitioner.

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Thereafter, the petitioner received Exhibit.P2 Vehicle Inspection Notice dated 10.06.2024 issued by the lawyer of the respondent-Bank calling upon the petitioner to bring the asset for the purpose of inspection at the designated place and time before the authorized representative mentioned in the notice within 7 days from the date of receipt of notice along with the copy of registration book & asset insurance documents failing which the

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W.P.(C) No.22818 of 2024 4

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respondent-Bank shall be constrained to take appropriate actions against the petitioner. As per Exhibit-P2 Notice, as on 07.06.2024, an amount of Rs.59,57,711/- is due to the respondent-Bank. Due to extreme financial issues and related loss in the business of the petitioner, the petitioner is unable to pay the defaulted amount in lump sum within a short span of time. The petitioner is ready to clear off the debt due to the respondent, if an opportunity is given to pay the said amount in instalments, contends the Counsel for the petitioner.

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Standing Counsel representing the respondent-Bank submitted that the petitioner has been consistently defaulting in repayment, and therefore the petitioner is not entitled to any discretionary reliefs from this Court. However, if the petitioner remits an amount of Rs.6,00,000/- within a period of two weeks and makes the proposal for regularization of the loan account, such proposal can be considered and a decision can be taken on regularization, provided the petitioner produces the vehicle for inspection.

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W.P.(C) No.22818 of 2024 5

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In the afore facts, the writ petition is disposed of directing that if the petitioner remits an amount of Rs.6,00,000/- within a period of two weeks and produces the vehicle for inspection by the respondent-Bank, the respondent-Bank shall consider the request of the petitioner for regularization and take appropriate decision thereion in accordance with law.

Sd/-

N.NAGARESH

JUDGE

vnk/-

W.P.(C) No.22818 of 2024 6

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APPENDIX OF WP(C) 22818/2024

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PETITIONER’S EXHIBITS :-

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EXHIBIT P1TRUE COPY OF THE REGISTRATION CERTIFICATE
OF THE VEHICLE BEARING REGISTRATION NO.
KL-63-H-8575
EXHIBIT P2TRUE COPIES OF THE VEHICLE INSPECTION
NOTICE DATED 10.06.2024 ISSUED BY THE
LAWYER OF THE RESPONDENT BANK TO THE
PETITIONER

Sreejith C.S v. Yes Bank

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Sreejith C.S v. Yes Bank

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