Kerala High Court
Ashok Harry Pothen vs Kerala Financial Corporation (Kfc) on 15 December, 2023
Author: N.Nagaresh
Bench: N.Nagaresh
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
FRIDAY, THE 15TH DAY OF DECEMBER 2023 / 24TH AGRAHAYANA, 1945
WP(C) NO. 42239 OF 2023
PETITIONER:
ASHOK HARRY POTHEN
AGED 57 YEARS
S/O HARRY POTHEN, MANAGING DIRECTOR,
M/S. POTHEN WHEELS PRIVATE LIMITED,
RESIDING AT FLAT NO.2 B, KOWDIAR MANOR,
JAWAHAR NAGAR, KOWDIAR,
THIRUVANANTHAPURAM, PIN - 695003
BY ADV S.NIDHEESH
RESPONDENT:
KERALA FINANCIAL CORPORATION (KFC)
BRANCH OFFICE, VELLAYAMBALAM,
THIRUVANANTHAPURAM,
REP. BY THE AUTHORIZED OFFICER, PIN - 695033
SRI.M.R. VENUGOPAL, STANDING COUNSEL
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
15.12.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) No.42239 of 2023
2
JUDGMENT
Dated this the 15th day of December, 2023 The petitioner, who has availed a Business Loan of ₹12.75 Crores in the year 2022 from the respondent-Kerala Financial Corporation, has approached this Court seeking to quash Ext.P2 and to direct the respondent to regularise the loan availed by the petitioner by remitting the overdue amount in affordable instalments.
2. The petitioner states that as per the RBI Circular, the account which has become NPA can be reversed, if the borrower pays the arrears and principal amount and it has been so held by this Court in the judgment in Elavakkattu Ceramics, Edappally and others v. Authorised Officer, Standard Chartered Bank Ravipuram and another [2015 (1) KLT 419].
3. Standing Counsel entered appearance and resisted the writ petition. The Standing Counsel denied all the averments made by the petitioner in the writ petition. On behalf WP(C) No.42239 of 2023 3 of the respondent, it is submitted that the petitioner after availing a loan in the year 2022, has been consistently making default in repayment to the loan account. The Business Loan of ₹12.75 Crores granted in the year 2022, has grown upto ₹13,95,36,000/- as on 15.12.2023. The account has become NPA on 02.07.2023. The interest part itself due from the petitioner would be ₹1,14,00,000/-. Unless the petitioner pays the overdue interest amount, the question of regularisation of the account cannot be considered at all, contended the Standing Counsel.
4. Taking into consideration the afore facts, I find that the petitioner should be given an opportunity to clear the overdue interest and apply for regularisation of the loan account.
5. In the circumstances, the writ petition is disposed of with the following directions:
(i) The petitioner shall remit an amount of ₹25 lakhs on or before 30.12.2023. WP(C) No.42239 of 2023 4
(ii) The petitioner shall remit the balance overdue interest part in the immediately succeeding three monthly instalments.
(iii) The petitioner shall also continue to pay regular EMIs during this period.
(iv) If the petitioner clears the interest part as directed above and pays the regular monthly instalments promptly, then the petitioner will be at liberty to approach the respondent for regularisation of the loan account.
(v) If the petitioner commits any 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.
Sd/-
N.NAGARESH JUDGE spk WP(C) No.42239 of 2023 5 APPENDIX OF WP(C) 42239/2023 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF THE NOTICE U/S 13(2) DATED 16.9.2023, ISSUED BY THE RESPONDENT Exhibit P2 TRUE COPY OF THE POSSESSION NOTICE DATED 16.11.2023, ISSUED BY THE RESPONDENT