ERNAKULAM 1 2 REJI CV v. D SIBI

RESPONDENT/DEFENDANT IN S.A: URBAN CO-OPERATIVE BANK LTD, NO. 1758 B NO. 10, URBAN BANK BUILDING PATTABI ROAD, PERINTHALMANNA, MALAPPURAM DISTRICT, REP BY ITS THE AUTHORISED OFFICER, PIN – 679 322. BY ADV U.K DEVIDAS THIS OP (DEBT RECOVERY TRIBUNAL) HAVING COME UP FOR ADMISSION ON 23.02.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: O.P.(DRT) No.84 of 2024 : 2 : JUDGMENT Dated this the 23rd day of February, 2024 The petitioners are the applicants and the respondent is the defendant in SA No. 65/2020, which is pending before the Debts Recovery Tribunal-I, Ernakulam.

2. The 1st petitioner availed a Cash Credit loan from the respondent-Bank mortgaging his agricultural property. After inspection, the respondent has sanctioned an amount of Rs. 2,80,00,000/- to the 1st petitioner. The loan was taken for his rubber unit. The 1st petitioner defaulted the repayment due to loss happened in the business and due to the flood occurred. The cultivation in the scheduled property has also perished and the 1st petitioner suffered huge loss. The repayment of loan fell into arrears. The Defendant issued notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002, alleging that there is dues of O.P.(DRT) No.84 of 2024 : 3 : Rs.2,85,28,249/-.

3. The petitioners have sent a detailed reply to the above notice. Without considering the same, the respondent-Bank issued sale notice to sell the property alleging that there is dues of Rs.3,27,92,563/- till 31.05.2019. The petitioners have preferred S.A No. 65 of 2020 before the Debts Recovery Tribunal-I, Ernakulam under Section 17 of the SARFAESI Act.

4. The petitioners state that at the time of admission, the Debts Recovery Tribunal-I, Ernakulam granted interim order and confirmation of the sale was deferred till next date of hearing and listed the matter on 06.03.2020. Thereafter, on subsequent posting dates, the respondent appeared and sought time for filing written statement. Thereafter, there was 11 postings for the case, but case was adjourned by notice and the case is posted to 04.04.2024. In the meanwhile, the petitioners were served with a notice by the Advocate Commissioner in respect of M.C No. 848/2023 filed before the Chief Judicial Magistrate’s Court, Manjeri stating that he O.P.(DRT) No.84 of 2024 : 4 : will take the possession of the property on 08.02.2024.

4. Since the case was posted to 04.04.2024, the petitioners filed IA No.680 of 2024 before the Debts Recovery Tribunal-I, Ernakulam to advance the case to near date for hearing the matter. But even after the petition has been filed, the said application was not so far considered and case is not advanced, contends the petitioners.

5. The grievance of the petitioners appears to be that the SA is pending for a considerable long period and all of a sudden, the respondents have invoked Section 14 of the Securitisation and Reconstruction of Financial Assets Enforcement of Security Interest Act, 2002 and the Advocate Commissioner is likely to take over physical possession of the mortgaged property soon. It is in such circumstances, that the petitioners have filed Ext.P6 I.A. No.680 of 2024 seeking to advance the Securitisation Application from

04.04.2024 to a near date for hearing.

6. Standing Counsel entered appearance on behalf of the respondent and resisted the original petition. The O.P.(DRT) No.84 of 2024 : 5 : Standing Counsel submitted that the petitioners are consistent defaulters and huge amounts are due to the Bank and the dues exceed Rs.5,72,00,000/-. The petitioners were comfortably sitting after filing the SA without making any payment. When the Section 14 proceedings are initiated, the petitioners have approached this Court. The O.P.(DRT) is without any merit and is liable to be dismissed, contended the respondent.

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

8. The petitioners have now filed Ext.P6 I.A. No.680 of 2024 seeking advancement of the Securitisation Application from 04.04.2024, invoking Section 19 (25) of the Recovery of Debts Due to Banks and Financial Institutions Act. The property mortgaged by the petitioners is under the threat of take over. In the circumstances, it would be only just and proper that the Debts Recovery Tribunal-I considers Ext.P6 application expeditiously. O.P.(DRT) No.84 of 2024 : 6 : OP(DRT) is therefore disposed of directing the Debts Recovery Tribunal-I, Ernakulam to consider Ext.P6 I.A. and take appropriate decision thereon in accordance with law within a period of two weeks. It is made clear that I have not expressed anything on merit over the claims of either parties. Sd/- N. NAGARESH JUDGE AMR O.P.(DRT) No.84 of 2024 : 7 : APPENDIX OF OP (DRT) 84/2024 PETITIONER’S EXHIBITS Exhibit P1 Exhibit P2 Exhibit P3 Exhibit P4 Exhibit P5 Exhibit P6 TRUE COPY OF THE SA NO. 65 OF 2020 FILED BEFORE THE DEBTS RECOVERY TRIBUNAL-I ERNAKULAM. TRUE COPY OF THE IA NO.316 OF 2020 IN SA NO. 65 OF 2020 FILED BEFORE THE DEBTS RECOVERY TRIBUNAL-I ERNAKULAM. TRUE COPY OF THE ONLINE PROCEEDINGS DATED 22.02.2020 IN IA NO.316 OF 2020 IN SA NO. 65 OF 2020 FILED BEFORE THE DEBTS RECOVERY TRIBUNAL-I ERNAKULAM. TRUE COPY OF THE WRITTEN STATEMENT FILED BY THE RESPONDENT BEFORE THE DEBTS RECOVERY TRIBUNAL-I ERNAKULAM DATED 05.09.2023. TRUE COPY OF THE NOTICE DATED 09.01.2024 FROM THE ADVOCATE COMMISSIONER IN M.C NO. 848 OF 2023 OF CHIEF JUDICIAL MAGISTRATE COURT, MANJERI. TRUE COPY OF THE IA NO. 680 OF 2024 FILED BY THE PETITIONER BEFORE THE DEBTS RECOVERY TRIBUNAL-I ERNAKULAM DATED 08.02.2024.