M. D. Dhanesh and Bindu Dhanesh v Muthoot Vehicle & Asset Finance and Its Authorized Officer, Muthoot Vehicle & Asset Finance, Corporate Office; Binoy Varghese George; Shiji Binoy Varghese
Case Details & Bench
- Court
- High Court of Kerala
- Hon'ble Judges
- Murali Purushothaman J.
- Judgment Date
- 2023-02-01
- Court Decision / Holding
- The writ petition was disposed of with directions permitting the outstanding amount of Rs. 1,31,25,000 to be paid in two installments: Rs. 40 lakhs on or before 25.02.2023 and the balance with interest on or before 25.03.2023. If the petitioners failed to pay the first installment, the secured assets may be surrendered. All coercive proceedings were deferred. The court also left open the possibility for the petitioners to approach the bank for a waiver of interest, which the bank may consider.
- Final Disposition
- Disposed of with directions as stated above.
Parties to the Case
Appellants / Petitioners
- M.D. Dhanesh
- Bindu Dhanesh
Respondents
- Muthoot Vehicle & Asset Finance
- The Authorized Officer, Muthoot Vehicle & Asset Finance
- Binoy Varghese George
- Shiji Binoy Varghese
Legal Representation & Advocates
Counsels for Petitioners
- • S. Vinod Bhat
- • Anagha Lakshmy Raman
- • Greeshma Chandrika R.
Counsels for Respondents
- • Sabu S. Kallaramoola
- • George Mathew Karamayil
- • M. D. Sasikumaran
- • Sunil Kumar A.G
- • Dipu James
- • Mathew K.T.
- • George K.V.
- • Stephy K. Regi
- • Adarsh Kurian
Case Synopsis & Summary
This is a Kerala High Court writ petition (WP(C) No. 39564 of 2022) challenging a possession certificate issued under the SARFAESI Act. The petitioners previously approached this Court in W.P.(C) No. 22453 of 2021, and the Court, by Ext. P1 judgment, issued directions requiring the petitioners to deposit Rs. 52,40,000 by 25.02.2022 and to pay the remaining outstanding amount with interest in 12 equal monthly installments, commencing March 2022; it was also directed that any discrepancies in the settlement would be considered without affecting the installments and that coercive proceedings would stand deferred. The petitioners later remitted six monthly installments but defaulted thereafter. An interim stay of coercive proceedings was granted on condition of a Rs. 20 lakh deposit by 31.12.2022, and the matter returned on 03.01.2023 and again on 31.01.2023 with a proposal to clear the outstanding loan amount of Rs. 1,31,25,000 in two installments. The 1st respondent Bank proposed that Rs. 50 lakh be paid by 25.02.2023 and the balance by 25.03.2023; the petitioners and guarantors urged payment in two installments instead (Rs. 40 lakh by 25.02.2023 and the balance by 25.03.2023). After hearing, the Court directed approval of the two-installment plan: Rs. 40 lakh by 25.02.2023 and the balance with interest by 25.03.2023, with a potential waiver of interest if approached by the petitioners; coercive proceedings were deferred and the petition disposed of accordingly.
Provisions of Law Cited
Submissions & Arguments
Contentions of Appellants / Petitioners
The petitioners sought extension to repay the outstanding amount with interest, in two installments (as refined during the proceedings) and subsequently argued for restructuring of payment terms while contending that coercive actions should remain deferred; they proposed to pay Rs. 1,31,25,000 in two installments (Rs. 40 lakhs by 25.02.2023 and the balance by 25.03.2023) and to consider waiver of interest upon request to the bank.
Contentions of Respondents
The bank advocated adherence to the revised schedule and insisted on the original time-bound installments, with specific dates (Rs. 50 lakhs by 25.02.2023 and the balance by 25.03.2023) and argued for protection of its security while allowing possible negotiations on waivers of interest; the guarantors supported a two-installment arrangement.
Cited Precedents (1)
| Case Name | Citation | Treatment | Explanation |
|---|---|---|---|
| W.P.(C) No.22453/2021, High Court of Kerala | Ext.P1 | Positive | Earlier judgment in W.P.(C) No.22453/2021 laid down the directions subsequently cited and followed by the current Court. |
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