Kannan v. The Authorized Officer

O R D E R [Order of the Court was made by R.SUBRAMANIAN, J.] Admit.

¶2Mr.R.Pandivel, Standing Counsel, takes notice for the respondent – Bank.

¶3Challenge in this writ petition is to the possession notice dated,

14.06.2022, issued by the respondent – Bank.

¶4Learned counsel for the petitioner would submit that the petitioner had paid Rs.5,00,000/- (Rupees five lakhs only) to the respondent – Bank even during February, 2023, however, the respondent – Bank has, instead of crediting the said amount to the loan account, credited to the Savings Account. Further, he would add that if the petitioner is given sometime, the petitioner would liquidate the entire loan.

¶5Learned Standing Counsel for the respondent – Bank would submit that the amount due from the petitioner is Rs.22,25,118/- and the learned Chief Judicial Magistrate, Madurai, has also passed an order dated

19.09.2022, under Section 14 of SARFAESI Act, appointing Advocate Commissioner to take possession of the secured asset. However, if at all there should be any indulgence to be shown to the petitioner, it should be only conditional.

¶6Considering the overall circumstances, the writ petition is disposed of with the following directions:

(i) The petitioner shall transfer the sum of Rs.5,00,000/- (Rupees five lakhs only) said to have been paid to the respondent – Bank during February, 2023 and credited to the Savings Account, to the loan account, by 30.03.2023.

(ii) The petitioner shall pay further a sum of Rs.2,25,118/- (Rupees two lakhs twenty five thousand one hundred and eighteen only) to the respondent – Bank, on or before 30.03.2023.

(iii) On such payments, the respondent – Bank shall defer the further proceedings.

(iv) The petitioner shall pay the balance amount of Rs.15,00,000/- (Rupees fifteen lakhs only) in four equated monthly installments commencing from April, 2023. The monthly instalments shall be paid on or before 20th of every succeeding month.

(v) The interest payable for the interregnum period and the cost incurred by the respondent – Bank shall be paid by the petitioner along with the last instalment.

(vi) The respondent – Bank can proceed with further, if there is a default in payment of the monthly installments. No costs. Consequently, connected miscellaneous petition is closed.

[R.S.M., J.] [L.V.G., J.]

20.03.2023 NCC : Index : Internet :

krk R.SUBRAMANIAN , J . and L.VICTORIA GOWRI , J . krk and W.M.P.(MD) No.5725 of 2023

20.03.2023

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 20.03.2023 CORAM: THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN and THE HONOURABLE MRS.JUSTICE L.VICTORIA GOWRI and W.M.P.(MD) No.5725 of 2023 Kannan ... Petitioner -vs- The Authorized Officer State Bank of India Madurai AD Branch Corporation Buildings RMS Road Madurai-625 001 ... Respondent PRAYER: Petition filed under Article 226 of the Constitution of India, to issue a writ of certiorari to call for the records relating to the impugned possession notice issued by the respondent Bank dated 14.06.2022 and to quash the same as illegal. For Petitioner : Mr.A.B.Jeeva For Respondent : Mr.R.Pandivel, Standing Counsel