Kerala High Court
M.M. Ramachandran vs South Indian Bank Ltd on 21 October, 2013
Author: A.M. Shaffique
Bench: A.M.Shaffique
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE
MONDAY, THE 25TH DAYOF JULY2016/3RD SRAVANA, 1938
WP(C).No. 19104 of 2016 (K)
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PETITIONER(S):
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1. M.M. RAMACHANDRAN,
313, 3RD FLOOR, AL-RAIS SHOPPING COMPLEX,
BUR DUBAI, DUBAI, UAE, REPRESENTED BY HIS WIFE
AND NEXT OF KIN INDIRA RAMACHANDRAN.
2. INDIRA RAMACHANDRAN,
313, 3RD FLOOR, AL-RAIS SHOPPING COMPLEX,
BUR DUBAI, DUBAI, UAE.
BY ADVS.SRI.C.K.KARUNAKARAN,
SRI.JOPHY POTHEN KANDANKARY.
RESPONDENT(S):
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1. SOUTH INDIAN BANK LTD.,
REGD. OFF: SIB HOUSE, T.B. ROAD,
MISSION QUARTERS, THRISSUR-680 001.
2. AUTHORISED OFFICER,
SOUTH INDIAN BANK LTD., SIB HOUSE,
T.B. ROAD, MISSION QUARTERS,
THRISSUR-680 001.
3. SOUTH INDIAN BANK LTD.,
MAIN BRANCH, ROUND SOUTH,
THRISSUR -680 001, REP.BY SENIOR MANAGER.
BY SRI.K.K.CHANDRAN PILLAI, SENIOR SC,
ADVS. SRI.K.K.JOHN, SC,
SRI.K.S.DILIP,
SRI.SAJU N.A.,
SMT.G.LEKHA,
SMT.P.J.FLONY,
SMT.S.AMBILY,
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 25-07-2016, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
rs.
WP(C).No. 19104 of 2016 (K)
APPENDIX
PETITIONER'S EXHIBITS:-
P1 TRUE COPY OF SANCTION/RENEWAL LETTER DATED 21.10.2013
ISSUED BY THE 3RD RESPONDENT.
P1(A) TRUE COPY OF 3RD RESPONDENT LETTER DATED 21.11.2013.
P2 STATEMENT OF INTEREST PAID IN THE VARIOUS ACCOUNTS TILL
END OF SEPTEMBER, 2015.
P3 TRUE COPY OF THE PUBLICATION THATAPPEARED IN HINDU
NEWS PAPER OF 6TH APRIL, 2016.
P4 TRUE COPY OF THE LETTER SENT BY THE 1ST PETITIONER TO
THE 1ST RESPONDENT, ALONG WITH THE COURIER RECEIPT
DATED 15.05.2016.
P5. TRUE ENGLISH VERSION OF THE NEWS THAT APPEARED IN
MATHRUBHUMI NEWS PAPER OF 12/11/2015.
P6. TRUE COPY OF THE DUBAI APPELLATE COURT JUDGMENT
DATED 12/05/2016.
P7. TRUE COPY OF THE MINUTES OF THE MEETING DATED 28/06/2016
CONVENED BY BANKS AT DUBAI.
RESPONDENT'S EXHIBITS:-
EXT.R1A COPIES OF THE REGISTRATION RECEIPTS EVIDENCING SENDING
OF DEMAND NOTICE.
EXT.R1B INFORMATION RECEIVED FROM THE OFFICE OF THE SENIOR
SUPERINTENDENT OF POST OFFICE.
EXT.R1C COPY OF THE DEMAND NOTICE DATED 08/01/2016.
EXT.R1D COPY OF THE E-MAIL DATED 02/05/2016 SENT IN THE NAME
OF 1ST PETITIONER.
EXT.R1E COPY OF THE LETTER DATED NIL WITH ITS COVER AND
ENDORSEMENTS.
EXT.R1F COPY OF THE REPLYDATED 19/05/2016.
.....2/-
WP(C).No. 19104 of 2016 (K)
EXT.R1G COPY OF THE LETTER SIGNED BY THE 1ST RESPONDENT.
EXT.R1H COPY OF THE REPLYDATED 08/06/2016.
EXT.R1I COPY OF THE REGISTRATION RECEIPT.
EXT.R1J COPY OF THE RECEIPT FROM COURIER COMPANY.
//TRUE COPY//
P.S.TO JUDGE
rs.
A.M. SHAFFIQUE, J.
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W.P.(C) No.19104 of 2016
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Dated this the 25th day of July, 2016
JUDGMENT
Petitioners have approached this Court being faced with the proceedings initiated by the respondent Bank under the SARFAESI Act.
2. It is stated that though the Bank had taken up a contention that there was proper service of notice under Section 13 (2) and 13(4) of the Act, petitioners were not served with any such notice. However, possession of the property has been taken without complying with the aforesaid requirements.
3. During the course of hearing, the learned counsel for the petitioners submits that the petitioners does not intend to challenge the service of notice under Section 13 (2) and 13 (4) of the Act, as the Bank had filed a counter affidavit, stating the manner in which the notice had been served by W.P.(C) No.19104 of 2016 -2- registered post as well as by affixture.
4. The learned counsel for the petitioners however submits that the petitioners should be granted some time to arrange settlement of the liability either by private sale of the property or by other methods. According to the learned counsel for the petitioners, if the property is sold by private sale, the liability of the Bank could be settled as early as possible.
5. Learned Senior Counsel appearing on behalf of the respondent Bank submits that the Bank had taken all necessary steps to effect sale of the property by issuing notice under Section 13 (2) and 13(4) in the proper manner. However, if the petitioners are ready and willing to bring any purchasers for the properties, the Bank shall take appropriate steps in the matter.
Taking into consideration the aforesaid fact situation, I am of the view that this writ petition can be disposed of as under:
(i) It shall be open for the petitioners to arrange W.P.(C) No.19104 of 2016 -3- purchasers for private sale of the secured asset and to bring the said purchasers to the Bank to enable conduct of the private sale on agreed terms and conditions.
(ii) To enable the petitioners to avail of the aforesaid opportunity, the Bank shall defer further proceedings pursuant to notice under Section 13 (4) of the Act for a period of three months.
(ii) Thereafter, if the settlement is not arrived at or the petitioners are unable to bring the purchasers for the value to be agreed upon by the Bank, it shall be open for the Bank to effect publication for sale of the properties.
(ii) Petitioners shall also provide the address of the petitioners to whom service of notice can be made and the subsequent status of the petitioners to the respondent Bank.
(iii) The right of the petitioners to approach the Bank for one time settlement is left open to be decided in an appropriate manner.
Sd/-
A.M. SHAFFIQUE JUDGE Scl/26.07.2016