Sureshkumar and Sukumaran Shasikala v. The Manager, South Indian Bank Limited; The Assistant General Manager (Regional Office), and The Chairman, South Indian Bank Limited

# **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** # **`PRESENT`** ## **`THE HONOURABLE MR.JUSTICE N.NAGARESH`** ``` THURSDAY, THE 25[TH] DAY OF JANUARY 2024 / 5TH MAGHA, 1945 WP(C) NO. 43453 OF 2023 ``` ## **`PETITIONERS:`** ``` 1SURESHKUMAR AGED 64 YEARS KORICHAN VILAKOM, SHARKARA, CHIRAYINKEEZHU POST (REPRESENTED BY POWER OF ATTORNEY HOLDER SUNILDUTH. S, KIZHAKKEVILAKOM, PANDAKASALA, CHIRAYINKEEZHU), PIN - 695304 ``` ``` 2SUKUMARAN SHASIKALA AGED 50 YEARS SIVAGIRI BUILDINGS, 1ST FLOOR LBS MARK MULUND WEST MUMBAI, 80MS. (REPRESENTED BY POWER OF ATTORNEY HOLDER SUNILDUTH. S., KIZHAKKEVILAKOM, PANDAKASALA, CHIRAYINKEEZHU), PIN – 400080 ``` ``` BY ADVS. SABU C.J RAHUL A. S.ANIL KUMAR (TRIVANDRUM) ``` ## **`RESPONDENTS:`** - **`1 THE MANAGER SOUTH INDIAN BANK LIMITED, PERRORKADA, THIRUVANANTHAPURAM., PIN - 695005`** ``` 2THE ASSISTANT GENERAL MANAGER REGIONAL OFFICE, 3RD FLOOR, YWCA BUILDING, M.G ROAD, SPENCER JUNCTION STATUE, THIRUVANANTHAPURAM., PIN - 695304 ``` ``` WP(C) No.43453 of 2023 ``` ``` 2 ``` ``` 3THE CHAIRMAN SOUTH INDIAN BANK LIMITED, REGISTERED OFFICE, SIB HOUSE, TB ROAD, MISSION QUARTERS, THRISSUR, KERALA., PIN – 680001 ``` ``` BY ADVS. SUNIL SHANKAR A VIDYA GANGADHARAN(K/000424/2020) DEVAYANI NAIR T.H.(K/1531/2019) ``` ``` THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 25.01.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` ``` WP(C) No.43453 of 2023 ``` ``` 3 ``` ## JUDGMENT ## Dated this the 25[th] day of January, 2024 ## The petitioners, who have availed a loan from the South Indian Bank Limited mortgaging a property, have filed this writ petition seeking the following reliefs: (i) Issue a writ of certiorari or other writ orders or directions as this Hon’ble Court deem fit to call for the records leading to the issue of Exts.P3 and P4 notices, examine the same and quash the same. (ii) To declare that the classification of loan account bearing number 0562652000000348 as NPA as on 30.04.2023 is illegal and against the guidelines in the RBI circular and the scheme of the moratorium declared by the Union of India. (iii) Issue a writ of certiorari or other writ orders or directions as this Hon’ble Court deem fit to the respondents that further proceedings on Ext.P4 notice shall not be taken without taking actual physical possession over the immovable property, residential buildings situated therein and the movable properties kept there. (iv) Issue a writ or mandamus or other writ, orders or directions to the respondents to consider Ext.P7 representation and to issue necessary orders for restructuring the loan for the period remaining this Hon’ble Court may fix the instalments for repayment of the loan within that period. (v) Issue any other writ, directions or order found fit and proper by this Hon’ble Court on the facts and in the circumstances of this case. ``` WP(C) No.43453 of 2023 ``` ``` 4 ``` 2. It is an admitted fact that the petitioners have obtained an amount of 2.50 Crores in the year 2018 by way₹ of a Property Mortgage Loan. The loan repayment fell into arrears and the respondents initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. 3. According to the respondents, the outstanding amount as on 21.12.2023 payable by the petitioners would be ₹2,01,39,828.41. Unless the petitioners remit the entire amount, the respondents will be forced to continue with the securitisation proceedings. 4. When the writ petition came up for admission on 22.12.2023, this Court passed an interim order staying further proceedings pursuant to Exts.P3 and P4 for a period of one month on condition that the petitioners remit an amount of ₹20 lakhs within a period of one month. The petitioners state that they have remitted the said amount. ``` WP(C) No.43453 of 2023 ``` ``` 5 ``` 5. When the matter was taken up again on 22.01.2024, Standing Counsel for the respondents submitted that the petitioners have entered into an agreement with the Bank on the basis of which part release of property has been sanctioned. The matter was adjourned to today. 6. The Standing Counsel for the respondents submits that by Ref No.BR/50/2023-24 dated 05.01.2024, the Bank has considered the proposal of the petitioners and have acceded to the proposal subject to the following conditions: (1) The offered amount of 106,00,000/- shall be₹ remitted on or before 30.01.2024, out of which ₹20,00,000/- to be remitted on or before 16.01.2024. (2) All signatories to the loan/s shall consent for the release of secured properties and an undertake/promise the remittance of the remaining dues to the Bank with future interests. (3) Further, release of said extent of the property is without prejudice to the legal rights available to the Bank to proceed with recover of the remaining dues in the loan account, against the remaining secured assets as well as against the borrower(s)/guarantor(s) personally. (4) ADS to be signed by all signatories to the loan documents before release of property. (5) Further, it is made crystal clear that, if default of any of the aforesaid conditions; this sanctions stands cancelled. ``` WP(C) No.43453 of 2023 ``` ``` 6 ``` 7. The Standing Counsel submitted that the petitioners are required to pay the offered amount of ₹1,06,00,000/- on or before 30.01.2024. 8. The counsel for the petitioners, on the other hand, submitted that payment of 1,06,00,000/- is not on mutual₹ agreement and the respondents have imposed the deadline of 30.01.2024, without the consent of the petitioners. The petitioners have already remitted 20 lakhs. The petitioners₹ will not be able to remit the balance amount before 30.01.2024 as directed by the Bank. The counsel for the petitioners urged that this Court may grant extension of time at least by a period of three months. 9. I have heard the learned counsel for the petitioners and the learned Standing Counsel representing the respondents. 10. The proposal for clearing the loan account, to release a mortgaged property and a private sale, was made by the petitioners themselves. On the proposals of the ``` WP(C) No.43453 of 2023 ``` ``` 7 ``` petitioners, the Bank has sanctioned such an arrangement on certain conditions as indicated above. If the petitioners are not satisfied and they want enlargement of time for payment of the aforesaid amount, the petitioners will have to approach the Bank. It will not be proper for this Court to extend the time given by the Bank on 05.01.2024, in view of the judgment of the Apex Court in State Bank of India v. Arvindra Electronics Private Limited [(2023) 1 SCC 540]. In the facts of the case, no further relief can be granted to the petitioners in this writ petition. The writ petition is therefore dismissed, granting liberty to the petitioners to approach the Bank for any further arrangement / rearrangement of the proposals, contained in the decision of the Bank in letter dated 05.01.2024. ## Sd/- ## N.NAGARESH ## JUDGE spk ``` WP(C) No.43453 of 2023 ``` ``` 8 ``` ## **`APPENDIX OF WP(C) 43453/2023`** ## **`PETITIONER EXHIBITS`** ``` Exhibit P1 ``` ``` Exhibit P1THE COPY OF THE ORDER DATED 31.03.2018 IN RESPECT OF SANCTIONING THE LOAN Exhibit P2THE ACCOUNT STATEMENT AS ON 13.10.2023 Exhibit P3THE COPY OF THE NOTICE UNDER S. 13(4) DATED 13.10.2023 Exhibit P4THE COPY OF THE PAPER PUBLICATION OF THE NOTICE DATED 31.05.2023 OBTAINED FROM THE BANK ``` ``` Exhibit P5A COPY OF THE MESSAGE DATED 20.07.2023 Exhibit P6A COPY OF THE MESSAGE DATED 21.07.2023 Exhibit P7THE COPY OF THE REPRESENTATION SUBMITTED TO THE BANK AUTHORITIES. Exhibit P8THE REPLY DATED 17-10-2023 SENT BY THE BANK AUTHORITIES Exhibit P9COPY OF THE REQUEST MADE THROUGH E- MAIL DATED 15.12.2023 ```