R.Rajesh Chandran Vs. State Bank of India - Court Judgment

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON FRIDAY, THE31T DAY OF JANUARY201411TH MAGHA, 1935 OP (DRT).No. 17 of 2014 (O) -------------------------------------- AGAINST THE ORDER

IN CRMP63992013 of CHIEF JUDL.MAGISTRATE, ERNAKULAM ------------- PETITIONER(S): ----------------------- R.RAJESH CHANDRAN S/O.RAMACHANDRAN NAIR K. RESIDING AT 'PUTHUSSERI VELIKKAKOM', VADAKKAL P.O. ALAPPUZHA DISTRICT, PIN:

688. 003. BY ADVS.SRI.SAIJU S. SRI.P.P.SYAM RESPONDENT(S): -------------------------- STATE BANK OF INDIA, RETAIL ASSETS CENTRAL PROCESSING CENTRE (RACPC), 1ST FLOOR, VANKARATH TOWERS, N.H.BYE-PASS JUNCTION, PALARIVATTOM, EDAPPALLY P.O., ERNAKULAM - 682 024, REPRESENTED BY ITS AUTHORISED OFFICER UNDER THE SARFAESI ACT2002 BY SRI.R.S.KALKURA, SC, SBI THIS OP (DEBT RECOVERY TRIBUNAL) HAVING COME UP FOR ADMISSION ON3101-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: PJ OP (DRT).No. 17 of 2014 (O) ---------------------------------------- APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- EXT.P1: THE TRUE COPY OF THE JUDGMENT

DTD. 20/11/2013 OF THE HON'BLE HIGH COURT OF KERALA IN WRIT PETITION (CIVIL) NO.28382 OF2013 EXT.P2: THE TRUE COPY OF NOTICE DT.10/1/2014 BY THE ADVOCATE COMMISSIONER, ISSUED PURSUANT TO CRIMINAL MISCELLANEOUS PETITION NO.6399/2013 PENDING BEFORE THE CHIEF JUDICIAL MAGISTRATE'S COURT, ERNAKULAM. EXT.P3: THE TRUE COPY OF THE SALE NOTICE DTD. 15/1/2014, PUBLISHED IN THE HINDU DAILY (KOCHI-EDN.) DT. 16/01/2014. EXT.P4: THE TRUE COPY OF THE MEMORANDUM OF SECURITISATION APPLICATION (UNREGISTERED) WITH SERIAL NO.1141, UNDER SECTION171) OF THE SARFAESI2002 FILED BY THE PETITIONER ON231/2014, BEFORE THE DEBTS RECOVERY TRIBUNAL, ERNAKULAM BENCH. EXT.P5: THE TRUE COPY OF THE UNNUMBERED INTERLOCATORY APPLICATION SEEKING STAY ON PROCEEDINGS, IN SECURITISATION APPLICATION (UNREGISTERED0 WITH SERIAL NO.1141, UNDER SECTION171) OF THE SARFAESI2002 FILED BY THE PETITIONER ON231/2014, BEFORE THE DEBTS RECOVERY TRIBUNAL, ERNAKULAM BENCH. RESPONDENT(S)' EXHIBITS --------------------------------------- NIL. / TRUE COPY / P.S.TO JUDGE PJ P.R.RAMACHANDRA MENON, J.

--------------------------------------- O.P.(DRT) No.17 of 2014 (O) ---------------------------------------- Dated this the 31st day of January, 2014 JUDGMENT

The petitioner availed a housing loan of `60 Lakhs from the respondent Bank in the year 2009 creating security interest over the property concerned. The re-payment could not be effected on time, which made the respondent Bank to declare the account as 'NPA' and to proceed with further steps under the SARFAESI Act. This was sought to be challenged by filing W.P.(C) No.28382 of 2013 before this Court and considering the nature of the loan and the extent of the overdue amount, which was to the tune of `10,86,000/-. The petitioner was permitted to clear the overdue amount by way of four equal monthly installments starting from 15.12.2013 in addition to the regular EMIs. Subject to the said condition, the loan account was ordered to be regularised, intercepting the coercive steps in the meanwhile with liberty to proceed with further steps, if there was any default. O.P.(DRT) No.17 of 2014 (O) 2 2.The learned counsel for the petitioner submits that in view of some unforeseen circumstance, there occurred some default and hence an I.A. was filed before this Court, seeking for extension of time to comply with the direction, which subsequently came to be dismissed as withdrawn. In view of the proceedings taken by the Bank getting an advocate commissioner was appointed under Section 14 of the SARFAESI ACT, 2002 and the sale notice published in this regard. Subsequently, the petitioner approached the DRT, Ernakulam on 23.01.2014 seeking to prefer Ext.P4, which is stated as still to be scrutinized and numbered. It is pointed out that there is no sitting in the DRT for the fact that the proceeding officer is already retired from the service and may take time to have a substitute appointed, hence the writ petition. 3.Sri.R.S.Kalkura, the learned Standing counsel entered appearance on behalf of the respondent Bank, who submits on instruction that the overdue as on date is O.P.(DRT) No.17 of 2014 (O) 3 `12,28,242/- there is no remittance in the account ever since March, 2012 and the monthly EMIs is to the tune of `63,607/-. It is pointed out that the petitioner itself has conceded the lapse on his side, despite which if there is any genuine attempt or desire to have the entire overdue amount cleared without delay, the bank is ready to give one more chance to the petitioner to have the loan account regularized and to save the property accordingly. 4.The learned counsel for the petitioner submits that the petitioner is ready to clear the entire overdue amount by way of 'two' equal monthly installments and seeks for regularization of the account. In view of the turn of events as mentioned above and the particular facts and circumstances the petitioner is directed to clear the entire overdue amount by way of two equal monthly installments. The first of it shall be effected on or before 28th February, 2014 and the other one on or before 31.03.2014, subject to which the loan account O.P.(DRT) No.17 of 2014 (O) 4 will stand regularised. No further petition for extension of time will be entertained under any circumstance. This shall also be in addition of the petitioner to clear the regular EMI. It is made clear that, if any default is committed with regard to the satisfaction of the 'overdue' as above, or if any two consecutive defaults are made with regard to the regular EMIs, it will be open for the respondent Bank to proceed with further steps for realization of the entire amount in lump, by pursuing such steps from the stage where it stands now. Subject to this, the recovery proceedings now pursued against the petitioner shall be kept in abeyance for the time being. The writ petition is disposed of. sd/- P.R.RAMACHANDRA MENON, JUDGE AMV O.P.(DRT) No.17 of 2014 (O) 5