SATHEESH V.K. Vs. FEDERAL BANK LTD.

JUDGEMENT

(1.) Appellant, Satheesh V.K., is a borrower within the meaning of sec. 2(f) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [SARFAESI Act]. Undisputedly, the appellant obtained financial assistance from the respondent-Federal Bank, a secured creditor within the meaning of sec. 2(zd) of the SARFAESI Act, by creating equitable mortgage over properties situated in Kozhikode. However, the appellant having defaulted in his obligation to repay the loan, the respondent classified the loan account as 'Non-Performing Asset' (NPA) and initiated measures under sec. 13(4) of the SARFAESI Act.

(2.) Aggrieved by the action taken by the respondent, the appellant invoked the jurisdiction of the High Court of Kerala at Ernakulam under Article 226 of the Constitution by presenting a writ petition [Writ Petition (C) No.33280 of 2024]. According to the respondent, the total outstanding amount was Rs.7,77,41,321.00. The order dtd. 1/10/2024 passed by the High Court disposing of the writ petition required the appellant to pay Rs.2,00,00,000.00 on or before 30/10/2024 and the remaining amount along with future interest in 12 (twelve) equal monthly instalments. The first instalment was to be paid on or before 15/11/2024 and the remaining eleven (11) instalments were to be paid on or before 15th day of each succeeding month. The impugned order further directed that in case of failure to make payment of Rs.2,00,00,000.00 or any of the subsequent instalments, as directed, the respondent would be free to proceed against the appellant under the SARFAESI Act for realisation of the dues in accordance with law. Appellant was also granted liberty to approach the respondent for one time settlement after making payment of the initial sum of Rs.2,00,00,000.00 on or before 30/10/2024.

(3.) The order dtd. 1/10/2024 was challenged by the appellant in a special leave petition [Special Leave Petition (C) No.28259/2024] before this Court. Order dtd. 28/11/2024 recorded on the said special leave petition by a coordinate Bench reads as follows: