Madras High Court
P.Kannan vs Ennore Asset Reconstruction Company ... on 5 September, 2024
Author: D.Krishnakumar
Bench: D.Krishnakumar
W.P.No.25650 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 05.09.2024
CORAM :
THE HON'BLE MR.D.KRISHNAKUMAR, ACTING CHIEF JUSTICE
AND
THE HON'BLE MR.JUSTICE P.B.BALAJI
W.P.No.25650 of 2024
P.Kannan .. Petitioner
Vs
1.Ennore Asset Reconstruction Company Private Limited,
Branch Office at No.101, Executive Zone,
Shakthi Tower, 1, Ground Floor,
766, Anna Salai, Mount Road,
Chennai-600 002.
2.The District Collector and District Magistrate,
New Collector Office,
Nagapattinam-Coimbatore-Gunlupet Highway,
AVP Azhagammal Nagar,
Thanjavur District-613 010.
3.The Revenue Divisional Officer,
RDO Office,
Kumbakonam Taluk,
Thanjavur District.
4.The Thasildar, SH 22, Anna Nagar,
Kumbakonam Taluk,
Kumbakonam-612 001. .. Respondents
Prayer : Petition filed under Article 226 of the Constitution of India
seeking issuance of a writ of mandamus directing the first respondent
__________
Page 1 of 6
https://www.mhc.tn.gov.in/judis
W.P.No.25650 of 2024
to consider the petitioner's representation dated 12.8.2024.
For the Petitioner : Mr.S.Ezhil Raj
For Respondents : Mr.Bharathi
for respondent No.1
: Mr.K.Karthik Jagannath
Government Advocate
for respondent Nos.2 to 4
ORDER
(Order of the Court was made by the Hon'ble Acting Chief Justice) The petitioner sent a representation dated 12.8.2024 to the first respondent expressing his willingness to settle the outstanding dues under one-time settlement (OTS) scheme. As the said representation did not educe any response, the present writ petition is filed.
2. Apropos the issue whether a positive direction can be issued by this Court directing consideration of the case of a loanee __________ Page 2 of 6 https://www.mhc.tn.gov.in/judis W.P.No.25650 of 2024 for grant of the benefit under OTS, the Supreme Court in Bijnor Urban Cooperative Bank v. Meenal Agarwal and others, (2023) 2 SCC 805, had emphatically held as under:
“14. .... no writ of mandamus can be issued by the High Court in exercise of powers under Article 226 of the Constitution of India, directing a bank to positively grant the benefit of OTS to a borrower. The grant of benefit under the OTS is always subject to the eligibility criteria mentioned under the OTS scheme and the guidelines issued from time-to-time. If the bank is of the opinion that the loanee has the capacity to make the payment and/or that the bank is able to recover the entire loan amount even by auctioning the mortgaged property/secured property, either from the loanee and/or guarantor, the bank would be justified in refusing to grant the benefit under the OTS scheme. Ultimately, such a decision should be left to the commercial wisdom of the bank whose amount is involved and it is always to be presumed that the financial institution/bank shall take a prudent decision whether to grant the benefit or not under the OTS scheme, having regard to the public interest involved and having regard to the factors which are narrated hereinabove.” [emphasis supplied] __________ Page 3 of 6 https://www.mhc.tn.gov.in/judis W.P.No.25650 of 2024
3. In the light of the aforesaid proposition of law enunciated by the Supreme Court in the decision, referred supra, we are neither expressing any opinion on the merits of the matter, nor giving any positive direction to the first respondent. We dispose of the writ petition with a direction to the first respondent to exercise its commercial wisdom and take a prudent decision on the representation of the petitioner dated 12.8.2024. Such orders shall be passed by the first respondent within three weeks from the date of receipt of a copy of this order, if necessary after providing an opportunity the petitioner. The petitioner shall furnish a copy of the representation dated 12.8.2024 along with a copy of this order to the first respondent right off. There shall be no order as to costs.
(D.K.K., ACJ.) (P.B.B, J.)
05.09.2024
Index : Yes/No
NC : Yes/No
sasi
__________
Page 4 of 6
https://www.mhc.tn.gov.in/judis W.P.No.25650 of 2024 To:
1.Ennore Asset Reconstruction Company Private Limited, Branch Office at No.101, Executive Zone, Shakthi Tower, 1, Ground Floor, 766, Anna Salai, Mount Road, Chennai-600 002.
2.The District Collector and District Magistrate, New Collector Office, Nagapattinam-Coimbatore-Gunlupet Highway, AVP Azhagammal Nagar, Thanjavur District-613 010.
3.The Revenue Divisional Officer, RDO Office, Kumbakonam Taluk, Thanjavur District.
4.The Thasildar, SH 22, Anna Nagar, Kumbakonam Taluk, Kumbakonam-612 001.
__________ Page 5 of 6 https://www.mhc.tn.gov.in/judis W.P.No.25650 of 2024 THE HON'BLE ACTING CHIEF JUSTICE AND P.B.BALAJI, J.
(sasi) W.P.No.25650 of 2024 05.09.2024 __________ Page 6 of 6 https://www.mhc.tn.gov.in/judis