Kerala High Court M/S. G.K. Granites vs South Indian Bank Ltd on 11 December, 2025 1 WPC 41807/25 2025:KER:96955 PRESENT THE HONOURABLE MR.JUSTICE BASANT BALAJI THURSDAY, THE 11TH DAY OF DECEMBER 2025 / 20TH AGRAHAYANA, 1947 WP(C) NO. 41807 OF 2025 PETITIONER/S: M/S. G.K. GRANITES, REPRESENTED BY ITS MANAGING PARTNER, GEORGE ANTONY, AGED 71 YEARS, S/O. ANTONY, KUREEKKAL, KIZHAKKAMBALAM P.O., KIZHAKKAMBALAM, ERNAKULAM DISTRICT, PIN 683562 BY SMT. MARIA NEDUMPARA SHRI.SHAMEEM FAYIZ V.P. SHRI.ROY PALLIKOODAM RESPONDENT/S: 1 SOUTH INDIAN BANK LTD., REPRESENTED BY ITS CHIEF MANAGER, REGIONAL OFFICE, CHRIST NAGAR, AKP JUNCTION, IRINJALAKUDA, THRISSUR, PIN 680215 2 AUTHORISED OFFICER, SOUTH INDIAN BANK LTD, REGIONAL OFFICE, CHRIST NAGAR, AKP JUNCTION, IRINJALAKUDA, THRISSUR, PIN 680125 3 THE BRANCH MANAGER, THE BRANCH MANAGER, SOUTH INDIAN BANK LTD, REGIONAL OFFICE, CHRIST NAGAR, AKP JUNCTION, IRINJALAKUDA, THRISSUR, PIN 680125 BY SRI.C.AJITH KUMAR SMT.VARSHA S.S. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11.12.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 WPC 41807/25 2025:KER:96955 JUDGMENT (Dated this the 11th day of December, 2025) The petitioner company, G.K. Granites, was incorporated on 18.07.1986 and registered as an MSME on 24.03.2021. The 1st respondent sanctioned multiple credit facilities to the petitioner between 2016 and 2022, including a Cash Credit (CCOL) Facility of ₹4.00 Crores, an SIBMLOD Facility of ₹9.50 Crores, and an ECLGS Loan of ₹3.00 Crores. According to the petitioner, a representation was made on 12.06.2024 to the respondent Bank requesting the restructuring of existing facilities and seeking extension of MSME support as per RBI circulars and Master Directions. However, due to non repayment, the respondent Bank classified the petitioner's loan accounts as a NonPerforming Asset (NPA) on 26.06.2024 and subsequently issued Ext.P5 notice dated 02.08.2024 under 3 WPC 41807/25 2025:KER:96955 Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), demanding payment of ₹18,07,08,346.23/ as on 2.08.2024. 2. Thereafter, the Bank issued Ext.P6 notice dated 06.12.2024 under Section 13(8) of the SARFAESI Act, proposing the sale of the secured assets. On 24.03.2025, the petitioner submitted a detailed representation proposing a One Time Settlement (OTS) of ₹17.50 Crores. The Bank accepted this proposal, conditional on the payment of ₹1 Crore by 31.03.2025 and the balance by 30.04.2025. The Petitioner successfully paid the initial ₹1 Crore but failed to remit the balance amount. This nonpayment was attributed to procedural delays by the Revenue Department in converting the classification of the mortgaged properties from nilam (wet land) 4 WPC 41807/25 2025:KER:96955 to purayidam (dry land). Consequently, the petitioner filed W.P.(C) No.23587/2025 before this Court, seeking a direction to the Revenue Authorities to expedite the land conversion order. On 02.06.2025, the petitioner sent a letter to the Bank again, requesting a 45day extension for paying the balance OTS amount. However, the Bank denied the extension and, by Ext.P11 letter dated 30.06.2025, directed the immediate repayment of the outstanding amount. 3. On the same day, 30.06.2025, the respondent Bank issued an EAuction Sale Notice under Rule 8(6) of the Security Interest (Enforcement) Rules, 2002, proposing to sell the mortgaged properties with a reserve price of ₹22,02,30,000/. The petitioner contested this, claiming the valuation was very low. In these circumstances,