2025:KER:27195 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE GOPINATH P. FRIDAY, THE 28TH DAY OF MARCH 2025 / 7TH CHAITHRA, 1947 WP(C) NO. 10083 OF 2025 PETITIONER: DENNY M.D., AGED 67 YEARS, S/O. DEVASSY, MANGALATHU PARAMBIL HOUSE, SIVAJIPUARAM, THURAVOOR-P.O., ERNAKULAM, PIN – 683572. BY ADVS. P.SATHISAN SHIBU B.S BIJU P.PAUL AKSHARA RAJU SWALIHA SELMI T.R. RAHUL MANNALI RESPONDENTS: 1 UNION BANK OF INDIA, UNION BANK BHAVAN, VIDHAN BHAVAN MARG, NARIMAN POINT, MUMBAI, MAHARASHTRA, 40002 REPRESENTED BY AUTHORISED OFFICER, PIN – 400021. 2 DEPUTY GENERAL MANAGER, UNION BANK OF INDIA, REGIONAL OFFICE, 2ND FLOOR, UNION BANK BHAVAN, M.G. ROAD, ERNAKULAM, PIN – 682035. 3 CHIEF MANAGER & AUTHORISED OFFICER, UNION BANK OF INDIA, PALISSERY BRANCH, SCMS SCHOOL OF ENGG. & TECHNOLOGY, VIDYANAGAR, PALISSERY, KARUKUTTY, ERNAKULAM, PIN – 683576. WP(C) NO. 10083 OF 2025 2 2025:KER:27195 BY ADVS. ASP.KURUP SADCHITH.P.KURUP(K/1419/2002) C.P.ANIL RAJ(K/872/2007) SIVA SURESH(K/2688/2022) B.SREEDEVI(K/169/2024) ATHIRA VIJAYAN(K/199/2024) THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 28.03.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 10083 OF 2025 3 2025:KER:27195 JUDGMENT The petitioner has approached this Court challenging the proceedings initiated against the petitioner under the provisions of the SARFAESI Act to recover amounts due under credit facilities availed by him from the respondent Bank following rejection of an application filed by the petitioner for One Time Settlement. 2. This Court on 17.03.2025, passed the following order:- “The learned counsel for the respondent Bank seeks time to get instructions. Post on 25.03.2025. Further coercive steps against the petitioner to remain suspended till 25.03.2025 on condition that the petitioner remits a sum of Rs.5 lakhs towards the loan liability on or before 05.00 p.m on 24.03.2025. The amount of Rs.5 lakhs shall be presently kept in a 'no lien account' to be appropriated subject to further orders from this Court.” 3. The learned counsel appearing for the petitioner submits that the petitioner has filed a fresh application WP(C) NO. 10083 OF 2025 4 2025:KER:27195 for One time Settlement and the same may be directed to be considered after affording an opportunity of hearing to the petitioner also. 4. The learned counsel appearing for the respondent Bank stoutly opposes the grant of any relief to the petitioner. It is submitted that even the amount remitted by the petitioner as a condition for the interim order has been remitted in a ‘no-lien account’ and is not to the benefit of the respondent Bank. It is submitted that the application for One Time Settlement submitted by the petitioner was rejected for valid reasons and the petitioner has not brought out any material to suggest that the matter requires reconsideration by the Bank. 5. The learned counsel for the petitioner states that the amount of Rs.5,00,000/- now deposited in a ‘no-lien account’ may be adjusted against the loan liability and the fresh application for OTS may be considered. Having heard the learned counsel appearing for the petitioner and the learned counsel appearing for the respondent Bank and considering the limited nature of relief sought for by the petitioner, I am of the opinion that subject to the condition that the amount remitted by the petitioner as a condition for the WP(C) NO. 10083 OF 2025 5 2025:KER:27195 interim order dated 17.03.2025 is adjusted against the loan liability, the competent authority of the respondent Bank can be directed to consider Ext.P8 application for One Time Settlement after affording an opportunity of hearing to the petitioner. Till such time as orders are passed on Ext.P8, further proceedings under the SARFAESI Act shall remain suspended. The petitioner shall appear before the 3rd respondent at 11.00 A.M on 04.04.2025 and thereafter Ext.P8 shall be considered by the 3rd respondent. The amount remitted by the petitioner pursuant to the interim order dated 17.03.2025 shall be adjusted forthwith against the loan liability. Sd/- GOPINATH P. JUDGE DK WP(C) NO. 10083 OF 2025 6 2025:KER:27195 APPENDIX OF WP(C) 10083/2025 PETITIONER EXHIBITS Exhibit P1 TRUE COPY OF SECTION 13(2) NOTICE VIDE REF.RO/CRLD/5940/2024-25 DATED 16.10.2024 ISSUED BY THE BANK Exhibit P2 TRUE COPY OF NOTICE ISSUED UNDER SECTION 13(4) DATED 18.02.2025 ISSUED BY THE BANK Exhibit P3 TRUE COPY OF REQUEST SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT BANK DATED 19.02.2025 Exhibit P4 TRUE COPY OF MEDICAL CERTIFICATE DATED 20.02.2025 Exhibit P5 TRUE COPY OF THE SUBMISSION DATED 16- 12-2024 SUBMITTED BY THE PETITIONER TO THE 3RD RESPONDENT Exhibit P6 TRUE COPY OF THE SUBMISSION DATED 10- 02-2025 SUBMITTED BY THE PETITIONER TO THE 3RD RESPONDENT BANK Exhibit P7 TRUE COPY OF ACKNOWLEDGEMENT FOR DD/NEFT/RTGS DATED 24.03.2025 Exhibit P8 TRUE COPY OF THE LETTER DATED 26.03.2025 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT RESPONDENT EXHIBITS Exhibit R1A A TRUE COPY OF REPLY LETTER DATED 23.01.2025 ISSUED BY THE BANK TO THE PETITIONER