Kerala High Court
Varghese Joseph @ Sabu vs State Of Bank Of India on 12 March, 2019
Author: Devan Ramachandran
Bench: Devan Ramachandran
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
TUESDAY ,THE 12TH DAY OF MARCH 2019 / 21ST PHALGUNA, 1940
WP(C).No. 5922 of 2019
PETITIONER/S:
1 VARGHESE JOSEPH @ SABU, AGED 58 YEARS
S/O. M.V. JOSEPH, MALAYAMPURAM HOUSE,
POOMTHOPPE, AVALOOKUNNU P.O.,
ALAPPUZHA DISTRICT, 688 006.
2 JANNY VARGHESE, AGED 52 YEARS
W/O. VARGHESE, JOSEPH,
MALAYAMPURAM HOUSE,
POOMTHOPPE, AVALOOKUNNU P.O.,
ALAPPUZHA DISTRICT, 688 006.
BY ADV. SRI.MATHEW KURIAKOSE
RESPONDENT/S:
1 STATE OF BANK OF INDIA
ALAPPUZHA MAIN BRANCH,
BEACH ROAD, ALAPPUZHA 688 012,
REPRESENTED BY BRANCH MANAGER.
2 THE AUTHORISED OFFICER,
STATE BANK OF INDIA,
ALAPPUZHA MAIN BRANCH,
BEACH ROAD, ALAPPUZHA 688 012.
BY ADVS.
SRI.K.K.CHANDRAN PILLAI (SR.)
SMT.AMBILY S., SC, SBI
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
12.03.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WPC 5922/19
2
JUDGMENT
The petitioners impugn Ext.P1 notice issued by the respondent-Bank under the provisions of Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act ('the SARFAESI Act' for brevity). However, it is now well settled, going by the judgment of the Hon'ble Supreme Court in Union Bank of India v. Satyawati Tondon ((2010) 8 SCC 110) and followed recently in Authorised Officer, SBT v. Mathew (ILR 2018 (1) Ker. 479), that the jurisdiction of this Court in entertaining this challenge is severely restricted, on account of the availability of efficacious alternative statutory remedies to the petitioners.
2. When I disclosed my mind as afore at the Bar, Sri. Mathew Kuriakose, the learned counsel for the petitioners, submits that his clients are only seeking a limited indulgence of this WPC 5922/19 3 Court for being allowed to pay off the liability in one of their loan accounts thus closing it, and to regularise the others. He says that, as is clear from Ext.P1, there are three loan accounts and that, with respect to the largest one, his clients have already entered into an agreement for sale with a prospective purchaser, who has consented to pay the amounts required for the closure of the said account, so that the other two accounts can be regularised. He submits that his clients require a letter from the respondent-Bank that they are willing to allow another Bank to take over the liability and, therefore, prays that the respondent-Bank be directed to do so.
3. Sri. K.K. Chandran Pillai, the learned Senior Cousel, assisted by Smt. S. Ambily, the learned Standing Counsel for the respondent- Bank, submits that as is evident from Ext.P1, there are three accounts; one of which is an WPC 5922/19 4 Export Packing Credit account and the other two being Cash Credit and Term Loan facilities. He says that the total outstanding in the Export Packing Credit account, as on 11.03.2019, is Rs.1,07,71,188/- and that the Bank is ready to issue a letter as requested by the petitioners, addressed to the Bank of the prospective purchaser that they are willing to accept the full amounts due in the afore account along with all applicable charges and interest, within a specified period of time and that if the petitioners are able to do so, the said account can be closed and the other two accounts, namely the Cash Credit and Term Loan facilities, can be regularised, provided the petitioners pay an additional amount of Rs.16,30,451/-, which is the balance outstanding therein, as on 12.03.2019, on or before 28.03.2019.
4. Sri. Mathew Kuriakose, the learned counsel for the petitioners, submits that his WPC 5922/19 5 clients accept these suggestions and prays that this writ petition be ordered on such terms.
5. In the afore circumstances, taking specific note of the submissions of Sri. K.K. Chandran Pillai, the learned Senior Counsel for the respondent-Bank, I direct the Bank to issue a letter, addressed to the Bank of the prospective purchaser, that they are willing to release the title documents of items 1 and 2 properties mentioned in Ext.P1, provided the petitioners pay the balance outstanding in the Export Packing Credit account afore mentioned, along with all applicable charges and interest is paid, within a time to be specified; which shall not be less than 10 days from the date of the letter, so as to close the said account.
6. Once such payment is made into the Export Packing Credit account and the same is closed, the petitioners will pay Rs.16,30,451/-, which is stated to be the overdue amount in the WPC 5922/19 6 other two accounts as on 12.03.2019, along with all applicable charges and interest, on or before 28.03.2019; in which event, these two accounts will stand regularised.
7. Needless to say, the petitioners will also pay the regular EMIs in the accounts to be regularised, without fail in future, in addition to the above.
8. Since the Cash Credit and Term Loan accounts are thus directed to be regularised, it goes without saying that the petitioners will also execute all necessary security documents, as instructed by the Bank, before 31.03.2019, so as to enable them to service those accounts in terms of the original loan sanction thereafter.
9. Thus, if the petitioners comply with the directions afore, the final consequence will be that the Export Packing Credit account will be closed and the other two accounts will stand regularised. If there is any default in making WPC 5922/19 7 the payment as directed above, the benefit granted under this judgment would stand vacated and the Bank will be at liberty to recover the entire liability from the petitioners by continuing with the proceedings from the stage it is on this date.
It is further clarified that the directions in this judgment are peremptory in nature and that the petitioners will have to comply with the same meticulously. I caution the petitioners that no further requests for extension or modification of this judgment, save in exceptional circumstances, will be permitted and that if the petitioners fail to comply with the directions herein, they will lose the benefit of this judgment and they will also be foreclosed from challenging the measures/proceedings taken by the Bank under the SARFAESI Act and impugned in this writ petition before any other alternative Forum or Court. WPC 5922/19 8
The writ petition is ordered accordingly.
Sd/-
DEVAN RAMACHANDRAN
RR JUDGE
WPC 5922/19
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APPENDIX
PETITIONER'S/S EXHIBITS:
EXHIBIT P1 TRUE COPY OF THE NOTICE DATED
22.10.2018 ISSUED UNDER SECTION 13 (2) OF THE SARGAESI ACT.
EXHIBIT P2 TRUE COPY OF THE COMMUNICATION DATED 1.11.2018 ISSUED TO THE 1ST RESPONDENT BANK.
EXHIBIT P3 TRUE COPY OF THE STATEMENT OF ACCOUNT DATED 25.2.2019 OF THE CASH CREDIT CC STOCKS ACCOUNT NO. 00000030849260631 WITH THE 1ST RESPONDENT BANK.
EXHIBIT P4 TRUE COPY OF THE STATEMENT OF ACCOUNT DATED 25.2.2019 OF THE CC PRE SHIPMENT EPC SSI ACCOUNT NO.
00000030998997414 WITH THE 1ST RESPONDENT BANK.