A. Saifudeen vs Indian Overseas Bank

C.S.Dias, J

The writ petition is filed to direct the respondent to permit the petitioner to pay off the overdue amount in instalments and regularise the loan account.

The petitioner’s case is that, he has availed a cash credit facility from the respondent bank by creating an equitable mortgage. However, due to unforeseen circumstances, he could not pay the instalments in time. The respondent bank has now proceeded against the secured asset under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (in short, ‘Act’). The petitioner is prepared to pay off the overdue amount in instalments. Hence, the writ petition.

Heard; Sri.Arun Chand, the learned counsel appearing for the petitioner and Sri.Sunil Sankar , the learned counsel appearing for the respondent.

Sri.Sunil Sankar, on instructions, submitted that this Court by interim order dated 05.05.2023 directed the petitioner to deposit an amount of Rs.3 lakh within a period of one month from the date of order. However, the petitioner has not complied with the said interim order.

The  Hon’ble  Supreme  Court  in  South Indian Bank Ltd vs. Naveen Mathew Philip (2023 LiveLaw (SC) 320), after adverting to a myriad of earlier judicial pronouncements rendered under the Act, has categorically declared that High Courts shall not, unless in extra ordinary circumstances, interfere with proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, in writ proceedings under Article 226 of the Constitution of India.

Having considered the pleadings and materials on record and taking note of the fact that the petitioner has not complied with the interim order dated 05.05.2023 as ordered by this Court, I am not inclined to exercise any discretion in favour of the petitioner by entertaining the writ petition under Article 226 of the Constitution of India. Nonetheless, it is upto the petitioner to work out his statutory remedies in accordance with law.

Resultantly, the writ petition is dismissed without prejudice to the right of the petitioner to work out his statutory remedies in accordance with law.