BY AD v. NISHA GEORGE

THE HONOURABLE MR.JUSTICE N.NAGARESH TUESDAY, THE 16TH DAY OF JANUARY 2024/26TH POUSHA, 1945 OP (DRT) NO. 529 OF 2023 PETITIONERS: 1 2 M/S. PRAJITH BUILDERS & DEVELOPERS PVT. LTD., ROOM NO. 17/1168, HAPPY BUILDING, NEAR SABHA SCHOOL, PUTHIYARA, KOZHIKODE, REPRESENTED BY ITS MANAGING DIRECTOR MR. PRAJITH C.M, PIN – 673 004. MR. PRAJITH C.M., AGED 39 YEARS, S/O RAMACHANDRAN, MANAGING DIRECTOR, M/S PRAJITH BUILDERS & DEVELOPERS PVT. LTD., CHITHRAM, CHELLAPRA MEETHAL, IRINGALLUR, KOZHIKODE, PIN – 673 014. BY ADVS. NISHA GEORGE GEORGE POONTHOTTAM (SR.) RESPONDENTS: 1 2 THE AUTHORIZED OFFICER & CHIEF MANAGER KERALA GRAMIN BANK, REGIONAL OFFICE, DEVAN'S TOWER, KARAPPARAMBU, KOZHIKODE, PIN – 673 010. THE MANAGER KERALA GRAMIN BANK, MANKAVU BRANCH, KOZHIKODE, PIN – 673 007. BY ADV M.GOPIKRISHNAN NAMBIAR THIS OP (DEBT RECOVERY TRIBUNAL) HAVING COME UP FOR ADMISSION ON 16.01.2024, ALONG WITH OP (DRT).258/2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: O.P.(DRT) Nos.258 and 529 of 2023 : 4 : JUDGMENT Dated this the 16th day of January, 2024 [O.P.(DRT) Nos.258 and 529 of 2023] The 1st petitioner is a Builder and Developer Company and the 2nd petitioner is the Managing Director of the company.

2. The petitioners had availed financial advances from the Kerala Gramin Bank. When petitioners failed to maintain the loan account, the respondents initiated coercive proceedings invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The petitioners thereupon approached the Debts Recovery Tribunal-I, Ernakulam filing S.A No.530/2022.

3. When the respondents invoked Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and the O.P.(DRT) Nos.258 and 529 of 2023 : 5 : Advocate Commissioner appointed by the Chief Judicial Magistrate Court issued notice, the petitioners file I.A No.1048/2023 in S.A No.530/2022. The application was dismissed by the Debts Recovery Tribunal as per Ext.P6 order dated 15.06.2023 in O.P.(DRT) No.258 of 2023.

4. The Bank issued Possession Notice dated

28.09.2022. The petitioners thereupon I.A No.2618/2022 seeking stay of the proceedings pursuant to notice dated 28.09.2022. The Debts Recovery Tribunal dismissed the said I.A also on 15.06.2023 as per Ext.P7 order in O.P.(DRT) No.258/2023. The petitioners had filed O.P.(DRT) No.258/2023 challenging Exts.P6 and P7 orders of the Debts Recovery Tribunal-I, Ernakulam.

5. Subsequently, the Bank continued with the securitisation proceedings and attempted to dispossess the petitioners from the secured asset mortgaged. At this juncture, the petitioners filed I.A No.3650/2023. The said I.A also stands dismissed as per Ext.P7 order dated

14.11.2023. Challenging the said Ext.P7 order, the O.P.(DRT) Nos.258 and 529 of 2023 : 6 : petitioners have filed O.P.(DRT) No.529/2023.

6. When O.P.(DRT) No.529/2023 came up for hearing on 20.12.2023, this Court passed an interim order to the following effect: It is an admitted position that the petitioners have paid ₹35 lakhs as upfront payment for consideration of One Time Settlement proposal.

2. Standing Counsel would submit that the One Time Settlement proposal is under process and is now pending consideration before the Chairman of the Bank. The petitioners had issued two cheques for ₹20 lakhs and 88 lakhs, which was intended for settlement of the loan account. Standing Counsel submits that those cheques will be presented for realisation only on finalisation of the OTS proposal. This is recorded. ₹ Post on 05.01.2024. Needless to say, coercive proceedings, if any, shall stand deferred till 05.01.2024.

7. I have heard the learned Counsel appearing for the petitioners and the learned Standing Counsel representing the respondents.

8. The petitioners have urged various ground in the original petitions, challenging the orders of the Debts Recovery Tribunal, in the I.As. The petitioners would even contend that the mortgage allegedly carried out by the O.P.(DRT) Nos.258 and 529 of 2023 : 7 : petitioners have not been registered with the Central Registry as mandated under Section 26(D) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The petitioners have deposited an amount of ₹35 lakhs during the pendency of these original petitions. The petitioners would further urge that the Bank has failed to issue Section 13(2) notice to the company, without which the entire proceedings will be vitiated.

9. Taking into consideration the afore facts and the grounds urged by the petitioners in these original petitions, I am of the view that it would be only appropriate that the Debts Recovery Tribunal is directed to finally dispose of the S.A filed by the petitioners in order to make a quietus to the issues involved. These original petitions are therefore disposed of directing the Debts Recovery Tribunal-I, Ernakulam to hear and finally dispose of S.A No.530/2022 as expeditiously as possible and at any rate within a period of O.P.(DRT) Nos.258 and 529 of 2023 : 8 : two months. The benefit of interim order dated 20.12.2023 in O.P.(DRT) No.529/2023 passed by this Court will continue to enure to the benefit of the petitioners till the S.A is finally disposed of. AMR Sd/- N. NAGARESH JUDGE O.P.(DRT) Nos.258 and 529 of 2023 : 9 : APPENDIX OF OP (DRT) 258/2023 PETITIONERS’ EXHIBITS Exhibit1 Exhibit P2 Exhibit P3 Exhibit P4 Exhibit P5 Exhibit P6 Exhibit P7 THE TRUE COPY OF THE POSSESSION NOTICE UNDER S.13(4) OF THE ACT ON 28.09.2022. A TRUE COPY OF THE NOTICE DATED 18.03.2023 ISSUED BY ADVOCATE COMMISSIONER. THE TRUE COPY OF THE AMENDED S. A.NO.530/2022 WITH ANNEXURES. THE TRUE COPY OF I.A.1048/2023 IN S. A.NO.530/2022. THE TRUE COPY OF COUNTER AFFIDAVIT IN I.A.1048/2023 IN S. A.NO.530/2022. THE CERTIFIED COPY OF THE ORDER DATED 15.06.2023 IN I.A. 1048/2023 IN S.A.NO.530/2022 BY THE DRT-1, ERNAKULAM. THE CERTIFIED COPY OF THE ORDER DATED 15.06.2023 IN I.A.2618/2022 IN S.A.NO.530/2022 BY THE DRT-I. ERNAKULAM. O.P.(DRT) Nos.258 and 529 of 2023 : 10 : APPENDIX OF OP (DRT) 529/2023 PETITIONERS’ EXHIBITS Exhibit-P1 Exhibit-P2 Exhibit-P3 Exhibit-P4 Exhibit-P5 Exhibit-P6 Exhibit-P7 TRUE COPY OF THE JUDGMENT IN WP(C) NO. 18140/2022 DATED 16.06.2022 PASSED BY THIS HON'BLE COURT. TRUE COPY OF THE AMENDED S.A. NO. 530/2022 FILED BEFORE THE DEBTS RECOVERY TRIBUNAL-I, ERNAKULAM. TRUE COPY OF THE COUNTER AFFIDAVIT IN I.A. NO. 1048/2023 IN S.A.NO. 530 OF 2022 FILED ON BEHALF OF THE RESPONDENT BANK BEFORE THE HON'BLE DEBTS RECOVERY TRIBUNAL-I, ERNAKULAM. TRUE COPY OF THE ORDER DATED 15.06.2023 PASSED BY THE HON'BLE DEBTS RECOVERY TRIBUNAL-I, ERNAKULAM IN I.A.NO. 1048/2023 IN S.A.NO. 530 OF 2022. TRUE COPY OF THE ORDER DATED 15.06.2023 PASSED BY THE HON'BLE DEBTS RECOVERY TRIBUNAL-1, ERNAKULAM IN I.A. NO. 2618 OF 2022 IN S.A. NO. 530 OF 2022. TRUE COPY OF THE APPLICATION DATED 13.10.2023 IN I.A. NO. 3650/2023 IN S.A. NO. 530/2022 FILED BEFORE THE HON'BLE DEBTS RECOVERY TRIBUNAL-I, ERNAKULAM. TRUE COPY OF THE ORDER DATED 14.11.2023 IN I.A. NO. 3650/2023 IN S.A. NO. 530/2022 PASSED BY THE HON'BLE DEBTS RECOVERY TRIBUNAL-I, ERNAKULAM.