IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON THURSDAY, THE 8TH JULY 2010 / 17TH ASHADHA 1932 WP(C).No. 37348 of 2009(K) -------------------------- PETITIONER: --------------- CANARA BANK, PUTHENCHANTHA BRANCH, THIRUVANANTHAPURAM, REPRESENTED BY K.N.BABU, MANAGER ARM BRANCH. BY ADV. MR. N.D.PREMACHANDRAN RESPONDENTS: --------------- 1. ABDUL RASHEED, S/O.LATE MOHAMMED KANNU, T.C.NO.43/751, T.P.BUNGLOW, MANACAUD P.O., THIRUVANANTHAPURAM. 2. RABIYATHU BEEVI, S/O.LATE MOHAMMED PATHUMMAL, T.C.43/757, KALLATTUMUKKU, MANACAUD P.O., THIRUVANANTHAPURAM. 3. NABEESATH BEEVI, W/O.LATE AHAMMED KANNU, TC.NO.18/2659, THRIKKANNAPURAM WARD THIRUVANANTHAPURAM AND ALSO AT RIVER VIEW BUNGLOW, MUDAVANMUGAL, ARAMADA, THIRUVANANTHAPURAM. 4. NISAR AHAMED, S/O.LATE AHAMMED KANNU, TC.NO.18/2659, THRIKKANNAPURAM WARD, THIRUVANANTHAPURAM AND ALSO AT RIVER VIEW BUNGLOW, MUDAVANMUGAL, ARAMADA, THIRUVANANTHAPURAM. 5. HIDAYATH, D/O.LATE AHAMMED KANNU, TC.NO.18/2659, THRIKKANNAPURAM WARD, THIRUVANANTHAPURAM AND ALSO AT RIVER VIEW BUNGLOW, MUDAVANMUGAL, ARAMADA, THIRUVANANTHAPURAM. 6. M/S.SALIH INDUSTRIAL ENTERPRISES PVT.LTD., REGISTERED OFFICE AND PRINCIPAL PLACE AT OLD TC.38/585, NEW TC.38/1469/11, POWER HOUSE ROAD, THIRUVANANTHAPURAM. 7. M.S.AHAMED, MANAGING DIRECTOR M/S.SALIH INDUSTRIAL ENTERPRISES PVT.LTD. REGISTERED OFFICE AND PRINCIPAL PLACE AT OLD TC.38/585, NEW TC.38/1469/11, POWER HOUSE ROAD, THIRUVANANTHAPURAM. 8. KAYIMUTHU BEEVI, DIRECTOR M/S.SALIH INDUSTRIAL ENTERPRISES PVT.LTD., REGISTERED OFFICE AND PRINCIPAL PLACE AT OLD TC.38/585, NEW TC.38/1469/11, POWER HOUSE ROAD, THIRUVANANTHAPURAM. 9. M.S.HANEEFA, DIRECTOR, M/S.SALIH INDUSTRIAL ENTERPRISES PVT.LTD., REGISTERED OFFICE AND PRINCIPAL PLACE AT OLD TC.38/585, NEW TC.38/1469/11, POWER HOUSE ROAD, THIRUVANANTHAPURAM. 10. MUHAMMED KANNU, S/O.MYTHEEN KUNJU PILLAI T.C.24/1144 KAMALESWARAM WARD, MANACAUD THIRUVANANTHAPURAM AND ALSO AT RIVER VIEW BUNGLOW, MUDAVANMUGAL, ARAMADA, THIRUVANANTHAPURAM. 11. AHAMMED KANNU, S/O.MYTHEEN KUNJU PILLAI T.C.18/2659, THRIKKANNAPURAM WARD, THIRUVANANTHAPURAM AND ALSO AT RIVER VIEW BUNGLOW, MUDAVANMUGAL, ARAMADA, THIRUVANANTHAPURAM. 12. MANAGING DIRECTOR, KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION KESTON ROAD, KOWDIAR, THIRUVANANTHAPURAM. 13. KERALA FINANCIAL CORPORATION VELLYAMBALAM, THIRUVANANTHAPURAM. 14. KERALA STATE CO-OPERATIVE BANK LTD., CO-BANK TOWERS, PALAYAM, THIRUVANANTHAPURAM. 15. TRIVANDRUM DISTRICT CO-OPERATIVE BANK LTD., FORT BRANCH, RAJADHANI BUILDINGS, FORT, THIRUVANANTHAPURAM. 16. MOHAMMED IBRAHIM, S/O.LATE MOHAMMED KANNU, T.C.43/759, ILLAM THOTTAM, MANACAUD P.O., THIRUVANANTHAPURAM. 17. MOHAMMED KASIM, S/O.LATE MOHAMMED KANNU, TV.43/758 ALBISHAM, MANACAUD P.O., THIRUVANANTHAPURAM. 18. SUBAIRKHAN, S/O.LATE AHAMMED KANNU (DIED) THIRUVANANTHAPURAM AND ALSO AT RIVER VIEW BUNGLOW, MUDAVANMUGAL, ARAMADA, THIRUVANANTHAPURAM. 19. MUHAMMED RAFI (DIED), S/O.LATE AHAMMED KANNU, TC.18/2659, THRIKKANNAPURAM WARD, THIRUVANANTHAPURAM AND ALSO AT RIVER VIEW BUNGLOW, MUDAVANMUGAL, ARAMADA, THIRUVANANTHAPURAM. 20. SUBARBAN BEEVI, D/O.LATE AHAMMED KANNU, TC.18/2659, THRIKKANNAPURAM WARD THIRUVANANTHAPURAM AND ALSO AT RIVER VIEW BUNGLOW, MUDAVANMUGAL, ARAMADA, THIRUVANANTHAPURAM. R12 BY STANDING COUNSEL MR. R. T. PRADEEP R13 MR.A.A. ABDUL HASSAN R14 MR. NAGARAJ NARAYANAN R15 MR. K.G. RADHAKRISHNAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON J. ~~~~~~~~~~~~~~~~~~~~~~~ W.P. (C) No. 37348 of 2009 ~~~~~~~~~~~~~~~~~~~~~~~ Dated, this the 8th day of July, 2010 JUDGMENT The petitioner, who is a nationalized Bank, is very much aggrieved of the non-finalization of the proceedings before the DRT, which involves cause of action, which runs back to more than two decades. 2. The case of the petitioner, as projected in the Writ Petition, is that, the respondents 6 to 10 herein had availed a loan of Rs. 25 lakhs from the petitioner way back in the year 1983 (7.7.1983), on the basis of the mortgage created over the properties concerned, which are clearly shown as 'C & D' schedule in the concerned proceedings before the DRT, over which exclusive charge was created in favour of the Bank (second charge). Some other financial assistances were availed by the borrowers from other financial institutions, like Kerala State Co- operative Bank, Kerala Finance Corporation, KSIDC, Trivandrum District Co-operative Bank etc. to whom, exclusive charge was created over the 'A & B' schedule properties. 3. While so, because of the default committed by the borrowers, the Bank proceeded against the defaulters by filing O.S. 515 of 1996, before the Sub Court, Trivandrum, seeking to realize a sum of Rs. 1,24,30,640/- plus interest and costs, which was subsequently W.P. (C) No. 37348 of 2010 : 2 : transferred to the DRT Ernakulam. On conclusion of the trial, the DRT passed final verdict as borne by Ext.P1, whereby the petitioner was permitted to realize a total sum of Rs.1,15,95,381/- plus interest and costs. Pursuant to the above verdict, recovery proceedings pursued by the Bank, by approaching the recovery office, for a total sum of Rs. 4,21,84,544/- on 2.8.2009. On pursuing such steps, Ext.P2 sales proclamation was issued, to which absolutely no objection whatsoever was preferred from the part of the concerned respondents. The sale was notified to be held on 17.9.2009 and after publication of sale notice, the respondents 1 to herein appeared before the recovery officer and raised a contention that the petitioner Bank was not justified in proceeding against C & D schedule properties, which belong to the respondents 1 to 5 herein, who were only the guarantors and that, the Bank could very well proceed against A & B schedule properties. The said contentions was rejected by the recovery officer, pursuant to which, the said respondents filed Ext.P3 appeal before the DRT, against Ext.P2 sales proclamation. In spite of the fact the appeal itself was belated and no petition whatsoever was filed to condone the delay, the Tribunal passed an interim order on 16.9.2009, as borne by Ext. P5, whereby the sale was deferred. 4. On coming across the adverse circumstances, the petitioner Bank filed a detailed counter affidavit on 7.10.2009, insisting for hearing W.P. (C) No. 37348 of 2010 : 3 : on 9.10.2009. But, the matter was adjourned to 6.11.2009 and subsequently to other dates for completion of service of notice. Pursuant to the paper publication effected, the parties entered appearance and the matter was adjourned to be heard on 13.8.2010. The learned counsel for the petitioner submits that, though the Bank had parted with the money as early as in 1983 and obtained the final verdict in the year 2002, the Bank is still made to wait, to have the fruits of the said decree, which hence is sought to be finalized within a specified time. 5. The learned standing counsel appearing for the respondents 13, 14 and 15 submit that, the huge amounts ranging from Rs. 7 crores to Rs. 9 crores are due from the defaulters to the said respondents as well and the said respondents are also very much anxious of the delay in finalizing the proceeding. 6. The learned counsel appearing for the respondents 1 to 5 submits that, the said respondents have got very vital contentions, which are to be considered by the DRT in detail. It is however stated that, the said respondents have no objection in causing the matter to be finalized in accordance with law, within a time frame. 7. Considering the rival submissions, this Court finds that, the proceedings are to be taken to the logical conclusion at the earliest, particularly, since the matter basic issue is of more than two decades. W.P. (C) No. 37348 of 2010 : 4 : The Debt Recovery Tribunal, Ernakulam is directed to consider and dispose of the appeal filed by respondents 1 to 5 against Ext.P2 sales proclamation, in accordance with law, as expeditiously as possible, at any rate, within 3 months from the date of receipt of a copy of this judgment. It is made clear that, the stipulation as to the time limit, shall be strictly adhered to, by the Tribunal. The Writ Petition is disposed of. P. R. RAMACHANDRA MENON, JUDGE kmd