High Court Kerala High Court

T.S.Swaminathan vs The Chiefmanager on 4 February, 2010

Kerala High Court
T.S.Swaminathan vs The Chiefmanager on 4 February, 2010
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 1560 of 2010(T)


1. T.S.SWAMINATHAN, AGED 36, S/O.LATE
                      ...  Petitioner

                        Vs



1. THE CHIEFMANAGER, (AUTHORISED OFFICER)
                       ...       Respondent

2. SRI.PADMADAS, S/O.KRISHNAN, ROHINI,

3. MISS.K.SHOBHA, D/O.KRISHNAN, ROHINI,

                For Petitioner  :SRI.I.DINESH MENON

                For Respondent  : No Appearance

The Hon'ble MR. Justice P.R.RAMACHANDRA MENON

 Dated :04/02/2010

 O R D E R
               P.R.RAMACHANDRA MENON, J.
                       -------------------------
                   W.P (C) No.1560 of 2010
                      --------------------------
              Dated this the 4th February, 2010

                        J U D G M E N T

The proceedings taken by the respondent Bank

issuing notice under Section 13 (2) of the SARFAESI Act

were challenged by the petitioner earlier by filing W.P (C)

No.28752 of 2009 ,which led to Ext.P5 judgment passed by

this Court on 6.11.2009, whereby, interference was

declined, however, with liberty to approach the Bank for

permitting the petitioner to have private sale or One Time

Settlement or for waiver of the interest as the case may be,

giving simultaneous direction to the bank to consider and

finalise the same.

2. It is the case of the petitioner that, pursuant to

Ext.P5 judgment, the petitioner filed Ext.P6 before the

bank which was considered and positively responded as

per Ext.P7, expressing willingness to release ‘two’ items of

properties for ‘private sale’; subject to the conditions as

stipulated therein. In the meanwhile, the petitioner

found out some prospective buyers with whom Exts.P8, P9

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and P10 agreements for sale have been executed. The

contention of the petitioner is that the sale could not take

place for the reason that somebody else filed a Civil Suit

before the Sub Court, Thrissur, wherein, the property

forming the subject matter of private sale as above, has

been caused to be attached as per order dated 13.1.2010

issuing Ext.P11 notice to the petitioner. It is also stated by

the learned counsel for the petitioner that pursuant to

Ext.P11 notice, the petitioner has appeared before the Civil

Court and has taken earnest efforts to see that the

attachment is lifted and the matter now stands adjourned

to 15.2.2010. The only limited prayer before this Court is

to provide some breathing time to get the attachment lifted,

so as to facilitate the ‘private sale’ and to clear the liability

to the Bank.

3. The learned counsel appearing for the Bank

submits, on instructions, that there is absolutely no merits

or bonafides in the claim made by the petitioner, more so,

since Exts.P8 to P10 agreements for sale were executed in

October 2009 and further the period for completion of the

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sale was only ‘one month’ from the date of the agreement,

which is already over. It is also brought to the notice of

this Court that the total liability of the petitioner to the

Bank will cross Rs.1.65 crores; whereas the amount likely

to be procured by the sale of the properties covered by

Exts.P8 to P10 will be only around Rs.25 lakhs.

4. The learned counsel for the petitioner submits

that the understanding between the petitioner and the

Bank was to go for a private sale of the properties in

question and to remit the entire amount procured by way

of sale to the bank, upon which loan account was to be

rescheduled enabling the petitioner to clear the liability in

a phased manner.

5. In any view of the matter, the fact remains that

the liability of the petitioner is still to be satisfied and that

no lapse or failure is pointed out on the part of the bank in

pursuing the remedy available to them under the

SARFAESI Act. This being the position, no interference is

warranted in this writ petition and the Bank is free to

proceed with further steps, in accordance with law.

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However, taking note of the persuasive submissions made

from the part of the petitioner to give some breathing time

to move the Sub Court, Thrissur, the respondent bank shall

proceed with such further steps only after 28.2.2010.

The Writ Petition is dismissed accordingly.

P.R.RAMACHANDRA MENON,
JUDGE

ma

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