THIRUVONAM INDUSTRIES Vs. HERO FINCORP LTD.

JUDGEMENT

(1.) The appellants-petitioners have filed W.P.(C)No.18126 of 2025, invoking the writ jurisdiction of this Court under Article 226 of the Constitution of India, seeking a declaration that Ext.P1 notice dtd. 16/3/2023 issued by the 2nd respondent Authorised Officer of the 1st respondent Hero Fincorp Limited, which is a private non-banking financial company, invoking the provisions under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and all further proceedings and documents issued pursuant thereto, are illegal and to quash the same; a writ of mandamus commanding the 1st respondent Hero Fincorp Limited to permit them to remit the due amount standing in the loan account mentioned in Ext.P1 notice dtd. 16/3/2023, in 25 instalments and regularise the loan account mentioned in the said notice; and a writ of mandamus commanding the 1st respondent Hero Fincorp Limited to allow them three months' repayment holiday.

(2.) Going by the averments in the writ petition, the 1st petitioner M/s. Thiruvonam Industries, along with petitioners 2 and 3, availed financial assistance from the 1st respondent Hero Fincorp Limited for Rs.88,00,000.00. The property having an extent of 75.5 cents comprised in Re-survey No.46/2 and 46/3-2 of Thaikkattussery Village, which is owned by the 3rd petitioner, was offered as security. On account of the default committed by the borrower in remitting the monthly instalments, the 1st respondent initiated proceedings under the SARFAESI Act. The document marked as Ext.P1 is a copy of the notice dtd. 16/3/2023 issued by the 2nd respondent Authorised Officer, under the provisions of the SARFAESI Act. Thereafter, the 1st respondent approached the Chief Judicial Magistrate, Alappuzha, under Sec. 14 of the SARFAESI Act. In M.C.No.221 of 2024, the Chief Judicial Magistrate appointed an Advocate Commissioner, who took possession of the secured asset on 23/4/2025, as evident from Ext.P2 inventory.

(3.) On 13/5/2025, when W.P.(C)No.18126 of 2025 came up for admission, the learned Single Judge issued urgent notice on admission by speed post to respondents 1 to 3 and granted an interim order staying the operation of Exts.P1 and P2, for a period of one month, on condition that the petitioners shall remit an amount of Rs.10.00 lakhs, within a period of one month. The petitioners did not comply with the said condition stipulated in the interim order dtd. 13/5/2025. On 18/6/2025, when the writ petition came up for consideration, the learned Single Judge dismissed the same by the impugned judgment. Paragraphs 2 to 5 of that judgment read thus;