Facts of the Case

The petitioner, a proprietor of a tea manufacturing and export business, sought directions permitting her to repay an outstanding One Time Settlement (OTS) amount to Catholic Syrian Bank Ltd in 18 equal monthly instalments, and to restrain her dispossession from her residential building pending such payment. This is a SARFAESI/loan-recovery dispute; the petitioner's GST registration certificate was placed on record only as an exhibit establishing her business identity, and the case does not involve any GST law question.

Issues Involved

  1. Whether the petitioner should be permitted to repay the outstanding OTS balance in instalments, and whether her dispossession from the residential building should be stayed pending payment.

Petitioner's Arguments

  • The petitioner was ready to remit the outstanding amount by way of instalments, and sought protection from dispossession from her residential building in the meantime.

Respondent's Arguments

  • The bank indicated that the outstanding balance was Rs. 82,00,000/-, and that if the petitioner deposited Rs. 41,00,000/- by 30.05.2023 and the remaining amount by 30.06.2023, her request for staged payment could be accommodated.

Court Order / Findings

  • Taking note of the submissions on both sides, the Court directed the petitioner to deposit the amounts as proposed by the bank's counsel — Rs. 41,00,000/- by 30.05.2023 and the balance by 30.06.2023.
  • It was made clear that on failure to make either payment on time, the bank would be at liberty to proceed with recovery in accordance with law.
  • The writ petition was disposed of on this consensual basis.

Important Clarification

This is a straightforward loan-settlement case with no GST holding — the Court simply converted the bank's own settlement offer into a binding, time-bound direction, with the bank free to resume enforcement if the petitioner defaults on either instalment.

Sections Involved

  • Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) — the framework under which the bank's recovery/enforcement proceedings against the petitioner had been initiated.

Decision – In Favour of

Disposed of on agreed terms — the petitioner was granted a staged repayment schedule, with the bank free to resume recovery in default; no independent finding was made in the petitioner's favour beyond recording this consensual arrangement.

Case Details

  • Court: High Court of Kerala at Ernakulam
  • Case Number: WP(C) No. 15374 of 2023
  • Coram: Hon'ble Mr. Justice A. Badharudeen
  • Date of Judgment: 09.05.2023

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