Deepak S vs State Bank Of India

C.S Dias, J

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

The petitioners’ case is that, they had availed cash credit facilities from the first respondent – Bank – by creating an equitable mortgage by deposit of title deeds. Due to unforeseen circumstances, they could not pay the instalments on time. The Bank has initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and is proceeding against the secured asset. The petitioners are willing to pay the overdue amount in instalments and regularise the loan account. Hence, the writ petition.

Heard; Sri.V.Philip Mathew, the learned counsel appearing for the petitioners and Sri.Tom K.Thomas, the learned Standing Counsel appearing for the respondents.

Sri.Tom K.Thomas, on instructions, submitted that the outstanding amount is Rs.2,43,23,736/-. The bank has already recalled the loans. The Bank has preferred O.A.(Diary)No.8164/23 before the Debt Recovery Tribunal-II, Ernakulam on 13.6.2023. The bank is not willing to extend any instalment facility to the petitioners. The petitioners may be relegated to exhaust the statutory remedy.

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 the Bank has already initiated recovery proceedings before the Tribunal, I am not inclined to entertain the writ petition by exercising the plenary powers of this Court under Article 226 of the Constitution of India. Nonetheless, it will be up to the petitioners to work out their statutory remedies.

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