Dhanaraj v. The Authorized Officer
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 08.06.2023 CORAM :
THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN and THE HONOURABLE MRS.JUSTICE L.VICTORIA GOWRI and WMP(MD)Nos.11281 and 11284 of 2023 1.Dhanaraj 2.Subadevi 3.Maxican Export, No.8/132, Andan Kovil Road, Amaravathy Nagar, Karur.
... Petitioners vs.
The Authorized Officer, Cholamandalam, Investments and Finance Company Ltd., Erode Branch, Erode. ... Respondent PRAYER : Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorarified Mandamus to call for the records relating to the impugned order passed by the learned Chief Judicial Magistrate, Karur in Crl.M.P.No.3622 of 2023, dated 17.05.2023 and quash the same as illegal and consequently direct the respondent bank not to attach the petitioner's dwelling house and also allow us to continue to pay the forthcoming EMIs to the loan account numbers XOHEKRU00003296743 and HE02KRU00000001906. 1/5
For Petitioners : Mr.I.Velpradeep For Respondents : Mr.P.Pethurajesh
ORDER
(Order of the Court was made by R.SUBRAMANIAN, J.) The challenge is to the order of the learned Chief Judicial Magistrate, Karur in Crl.M.P.No.3622 of 2023, dated 17.05.2023, under Section 14 of the SARFAESI Act, 2002.
2. Since the Debts Recovery Tribunal is not manned, we are entertaining this writ petition.
3. Heard Mr.I.Velpradeep, learned counsel for the petitioner and Mr.P.Pethurajesh, learned Standing Counsel, who takes notice for the respondent - Financial Institution.
4. Unfortunately, the account of the petitioners was classified as 'Non Performing Asset' because of the failure of the petitioners to pay four equated monthly installments. The equated monthly installments for the two loans comes to around Rs.2,20,569/-. Therefore, the entire default itself roughly comes to around Rs.10,00,000/-.
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5. The learned standing counsel for the respondent - Financial Institution upon instructions would submit that the respondent is willing to regularize the account if the petitioners pay a sum of Rs.50,00,000/-.
6. The learned counsel for the petitioners offers to pay Rs.25,00,000/-.
7. Considering the offer and the counter offer, we are of the opinion that the petitioners could be directed to pay a sum of Rs.40,00,000/- in two installments within a period of two months. The first installment shall be paid on or before 07.07.2023 and the second installment shall be paid on or before 07.08.2023. Upon such payment, the respondent - Financial Institution will regularize the account of the petitioners and the petitioners will be permitted to continue to pay the EMI fixed.
8. In the event of failure on the part of the petitioners to comply with the directions relating to payment of Rs.40,00,000/-, the respondent can proceed further. The respondent will also at liberty to proceed further in execution of the order of the learned Chief Judicial Magistrate if the petitioners commit a default in payment of two consecutive EMIs after regularization of the account. 3/5
9. With the above directions, the Writ Petition stands disposed of. No Costs. Consequently, connected miscellaneous petitions are closed. (R.SUBRAMANIAN, J.) & (L.VICTORIA GOWRI, J.) 08.06.2023 Index : Yes / No pm 4/5
R.SUBRAMANIAN , J.
and L.VICTORIA GOWRI , J.
pm ORDER MADE IN DATED : 08.06.2023 5/5