Kerala High Court
Benny K P vs The State Bank Of India on 6 February, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
TUESDAY, THE 6TH DAY OF FEBRUARY 2024 / 17TH MAGHA, 1945
WP(C) NO. 4037 OF 2024
PETITIONER:
BENNY K P
AGED 55 YEARS
S/O PAILY, AGED 55, KOZHIMULLORATH HOUSE,
SENGULAM, VELLATHOOVAL, IDUKKI DIST - 685565
BY ADV N.S.REHNA
RESPONDENT:
THE STATE BANK OF INDIA
REPRESENTED BY ITS AUTHORIZED AUFFICER,
MEKKATTIL BUILDING, NEAR PRIVATE BUS STAND,
ADIMALY P.O., IDUKKI DIST., PIN - 685561
SMT.BINDUMOL JOSEPH
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 06.02.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
WP(C) No.4037 of 2024
2
JUDGMENT
Dated this the 6th day of February, 2024 The petitioner has approached this Court aggrieved by the coercive proceedings for recovery of financial advance made by the State Bank of India to the petitioner, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
2. The Bank paid ₹2.90 lakhs towards KCC Loan, ₹4,33,900/- towards WC Term Loan, ₹2,99,000/- towards FITL and ₹16,81,000/- towards Over Draft facility to the petitioner. The petitioner states that though the petitioner made remittances promptly during the initial repayment period of the financial advance, he could not pay the repayment instalments promptly later due to Covid-19 pandemic. The repayment of loans fell into arrears later. It happened due to reasons beyond the control of the petitioner. WP(C) No.4037 of 2024 3
3. Though the petitioner requested the Bank to permit the petitioner to repay the overdue amounts in easy monthly instalments, the Bank authorities were not yielding. The authorities, instead, started coercive proceedings, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the Security Interest (Enforcement) Rules, 2002 and issued Ext.P3 notice.
4. The petitioner states that he is still in a position to clear the overdue amounts towards the loans, if sufficient time is given to clear the dues in easy monthly instalments. If the respondent is permitted to continue with the coercive proceedings and auction the secured assets provided by the petitioner, he will be put to untold hardship and loss.
5. Standing Counsel entered appearance on behalf of the Bank and denied all the statements made by the petitioner. On behalf of the respondent, it is submitted that the petitioner committed default in repaying the loans and WP(C) No.4037 of 2024 4 maintaining the advance / credit facility.
6. The Bank repeatedly reminded the petitioner and required him to clear the dues. The petitioner deliberately omitted to do so. In the circumstances, the Bank had no other go than to proceed against the petitioner invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The impugned Ext.P3 was issued in these circumstances. The petitioner has not advanced any legal reasons to thwart the coercive proceedings initiated by the Bank.
7. The Standing Counsel, however, submitted that if the petitioner is ready and willing to make a substantial payment soon and remit the balance outstanding amount immediately thereafter, a short breathing time can be granted to the petitioner to clear the dues. The Standing Counsel submitted that the outstanding amount due to the Bank from the petitioner as on 06.02.2024 is ₹29,90,538/-. WP(C) No.4037 of 2024 5
8. I have heard the counsel for the petitioner and the Standing Counsel representing the Bank.
9. The specific case of the petitioner is that the petitioner has been making the repayment and maintaining the loan accounts initially. The default in repayment of the loans occurred lately due to reasons beyond the control of the petitioner. The petitioner has provided substantial security which will safeguard the interest of the Bank.
10. In the facts and circumstances of the case, I am inclined to dispose of the writ petition giving a short and reasonable time to the petitioner to clear off the liability.
11. The writ petition is therefore disposed of with the following directions:
(i) The petitioner shall remit the outstanding amount of ₹29,90,538/- in 12 consecutive and equal monthly instalments along with accruing interest and other Bank charges, if any. First of such instalments WP(C) No.4037 of 2024 6 shall be paid on or before 29.02.2024 and the second instalment shall be paid on or before 31.03.2024.
(ii) If the petitioner commits single default in making payments as directed above, the respondent will be at liberty to continue with the coercive proceedings against the petitioner in accordance with law.
(iv) If the petitioner makes payments as directed above, coercive proceedings, if any, against the petitioner shall stand deferred.
Sd/-
N.NAGARESH JUDGE spk WP(C) No.4037 of 2024 7 APPENDIX OF WP(C) 4037/2024 PETITIONER EXHIBITS Exhibit -P1 TRUE COPY OF TREATMENT RECORDS ON 18/05/2023 Exhibit -P2 TRUE COPY OF NOTICE DATED 10/08/2023 BY THE RESPONDENT Exhibit -P3 TRUE COPY OF NOTICE DATED 12/01/2024 BY THE RESPONDENT