M/S.Thanikkudam Bagavati Mills … vs The South Indian Bank Ltd on 18 September, 2009

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WA.No. 1084 of 2007()


1. M/S.THANIKKUDAM BAGAVATI MILLS LTD.,
                      ...  Petitioner

                        Vs



1. THE SOUTH INDIAN BANK LTD,
                       ...       Respondent

2. THE CATHOLIC SYRIAN BANK LTD,

                For Petitioner  :SRI.DEVAN RAMACHANDRAN

                For Respondent  :SRI.GEORGE VARGHESE,SC,SOUTH INDIAN BAN

The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice V.K.MOHANAN

 Dated :18/09/2009

 O R D E R
             C.N. RAMACHANDRAN NAIR &
                   V.K.MOHANAN, JJ.
          ----------------------------------------
                 W.A. No.1084 OF 2007
          ----------------------------------------
       Dated, the 18th day of September , 2009

                       JUDGMENT

Ramachandran Nair, J.

The borrower company which has committed

chronic default approached this Court by filing writ

petition challenging the notice issued under section 13(2)

of the Securitisation and Reconstruction of Financial

Assets and Enforcement of Security Interest Act, 2002.

The learned Single Judge held that though both the

respondents are scheduled banks, the government has

no control over the respondents and therefore, no writ

will lie against the respondent banks. In the first

place, we do not find anything wrong in the judgment

because, the respondents are only commercial banks.

However, probably, this Court could interfere if the

statutory action contemplated is illegal or untenable.

WA 1084/07
-:2:-

The Supreme Court has upheld the validity of the

Securitisation Act and for balance disputes,

proceedings can be initiated before the DRT. The

appellant/petitioner does not deny borrowals and default

which happened long back. In fact, while admitting the

writ appeal, this court on 13.4.2007 suggested the

appellant to submit the proposal before the banks for

settlement. We do not find any justification to retain the

the writ appeal before this Court. If there is any grievance

for the appellant, he can approach the DRT.

The Writ Appeal is dismissed because there is no

merit in it.

C.N.RAMACHANDRAN NAIR
JUDGE

V.K.MOHANAN,
JUDGE
kvm/-

WA 1084/07
-:3:-

V.K.MOHANAN, J.

O.P.No.

JUDGMENT

Dated:..