High Court of KeralaWP(C)/20030/2015disposed of

M/S.Surabhi Steels (P) Ltd v. M/S. Indian Overseas Bank

2015-07-10Honourable Mr. Justice A.Muhamed Mustaque5 pages

IN THE HIGH COURT OF KERALA AT ERNAKULAM

PRESENT:

THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE FRIDAY, THE 10TH DAY OF JULY 2015/19TH ASHADHA, 1937 WP(C).No. 20030 of 2015 (C) ---------------------------- PETITIONER(S):

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1. M/S.SURABHI STEELS (P) LTD AGED 66 YEARS HAVING ITS ADMN. OFFICE AT SURABHI, 14/690, 691 STADIUM BUS STAND, KALMANDAPAM, PALAKKAD 678001 REPRESENTED BY ITS MANAGING DIRECTOR KADER PILLAI KS, S/O.KA SAIDALI, RUKIYA BAGH ROYAL LANE, KADAVANTHRA, ERNAKULAM PIN 682020

2. M/S.SURABHI STEEL ROLLING MILLS PVT. LTD. HAVING ITS ADMN. OFFICE AT SURABHI, 14/690, 691 STADIUM BUS STAND, KALMANDAPAM, PALAKKAD 678001 REPRESENTED BY ITS MANAGING DIRECTOR KADER PILLAI KS, S/O.KA SAIDALI, RUKIYA BAGH ROYAL LANE, KADAVANTHRA, ERNAKULAM PIN 682020

3. M/S. SURABHI IRON & STEEL CO. PVT. LTD.

REG.OFFICE 41/3, M.G.C. PALAYAM, KURUKAMPALAYAM PO GANESAPURAM, COIMBATORE 641107 REPRESENTED BY ITS MANAGING DIRECTOR KADER PILLAI KS, S/O.K.A SAIDALI, RUKIYA BAGH ROYAL LANE, KADAVANTHRA, ERNAKULAM PIN 682020

4. KADER PILLAI K.S S/O.KA SAIDALI, RUKIYA BAGH, ROYAL LANE KADAVANTHRA, ERNAKULAM, PIN 682020 BY ADVS.SRI.LAL K.JOSEPH SRI.A.A.ZIYAD RAHMAN SRI.V.S.SHIRAZ BAVA SRI.JOSEPH KURIAN VALLAMATTAM RESPONDENT(S):

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1. M/S. INDIAN OVERSEAS BANK OPPANAKKARA STEET BRANCH, OPPANAKARA STREET COIMBATORE, PIN 641001

2. THE AUTHORIZED OFFICER INDIAN OVERSEAS BANK, OPPANAKKARA STREET BRANCH OPPANAKARA STREET, COIMBATORE, PIN 641001 BY SRI.SUNIL SHANKAR, SC, INDIAN OVERSEAS BANK THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10-07-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

vmr.

WP(C).No. 20030 of 2015 (C) ---------------------------- APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- P1:TRUE COPY OF THE DEMAND NOTICE DATED 15.10.2014 UNDER SECTION 13(2)OF THE SARFAESI ACT, 2002 P2:TRUE COPY OF THE DEMAND NOTICE DATED 15.10.2014 ISSUED TO THE 2ND PETITIONER P3:TRUE COPY OF THE DEMAND NOTICE DATED 15.10.2014 ISSUED TO THE 3RD PETITIONER P4:TRUE COPY OF THE DEED OF SETTLEMENT DATED 28.02.2015 P5:TRUE COPY OF THE POSSESSION NOTICE ISSUED BY RESPONDENT BANK PUBLISHED IN NEW SUNDAY EXPRESS DATED 03.05.2015 RESPONDENT(S)' EXHIBITS :

NIL --------------------------------------- /TRUE COPY/ P.S.TO JUDGE vmr.

A.MUHAMED MUSTAQUE, J.

------------------------------------ W.P.(C).No.20030 of 2015 ----------------------------------- Dated this the 10th day of July, 2015

J U D G M E N T

The petitioners availed a cash credit facility from the respondent Bank. On account of default in repaying the loan amount, the Bank initiated 'SARFAESI' proceedings against the petitioners. The same is under challenge in this writ petition.

2. The learned counsel for the petitioners submits that, the petitioners are prepared to remit a portion of the demand and the Bank may be directed to renew the cash credit facility.

3. The learned Standing Counsel for the Bank submits that, the total amount due from the petitioners is around 40 lakhs and ₹ that, the Bank cannot consider the request of the petitioners as the period is over.

4. It is submitted by the learned counsel for the petitioners that, the petitioners are running unit and due to adversities in the market they were unable to clear the liability.

5. Considering the facts and circumstances, I am of the view that, it is for the petitioners to approach the Bank with the details regarding functioning of the unit. Necessarily, if genuineness of the petitioners is established, the Bank should consider the request for renewal in accordance with the norms of the Bank.

6. In view of the above, this writ petition is disposed of with

W.P.(C).No.20030 of 2015 the following directions :

1. The petitioners shall remit an amount of 1,00,00,000/- ₹ (Rupees One crore only) within one month from today.

2. The petitioners shall submit the request for renewal of cash credit facility before the Bank within three weeks from today.

2. If the petitioners deposit the amount as stipulated above, the Bank shall consider petitioners' request as per the norms of the Bank.

4. To work out above reliefs, all coercive proceedings against the petitioners shall be deferred for a period of two months from today.

Sd/- A.MUHAMED MUSTAQUE, JUDGE.