C.R.P.No.1551 of 2021

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED:07.07.2023

CORAM:

THE HON'BLE Mrs.JUSTICE V.BHAVANI SUBBAROYAN

C.R.P.No.1551 of 2021

1. M/s. Kotak Mahindra Bank Limited

rep. By the Authorised Officer,

7^th floor, Plot No.7, Sector 125,

Near Dell Complex, Noida – 201 313

2. M/s Kotak Mahindra Bank Limited,

rep. By its Authorised Officer,

No.185, 2^nd Floor, Annasalai,

Mount Road, Chennai – 600 006

... Petitioners

Vs.

1. T.K.Karthikeyan

2. Shanthi Karthikeyan

3. Future Capital Finance Service Limited

rep. By its State Risk Head having registered

office at FCH House,

Peninsula Corporate Park,

Ganpatrao Kadam Marg,

Lower Parle, Mumbai – 400 013

4. Authorised Officer,

Capital First Limited,

Unit No.401-407, 4^th Floor,

A Wing Technopolis Knowledge Park,

Chakala Road, Opp. Holy Family School,

Andheri, Mumbai – 400 093

... Respondents

Civil Revision Petition filed under Article 227 Constitution of India to

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C.R.P.No.1551 of 2021

set aside the petition and order passed in I.A.No.4 of 2021 in O.S.No.78 of

2021 dated 12.03.2021 and to terminate the O.S.No.78 of 2021 on the file

of learned Principal Judge, Tiruvallur.

For Petitioner

: Mr. V.Balasubramani

For Respondents : Mr.B.Jeyash B.Dolia Sr.Counsel for

Mr.K.Pattabhi

O R D E R

The present Civil Revision Petition is filed as against the order dated

12-3 2021 made in I.A No 4 of 2021 in O.S. No 78 of 2021 and to terminate

the O.S. No. 78 of 2021 on the file of the Principal Judge. Thiruvallur.

2. The brief facts of the case are as follows:-

(i) The 1^st and 2^nd Respondents had obtained loan from M/s

Capital First Limited, formerly known as Future Capital Holding Limited/ 3^rd

and 4^th respondents for a sum of Rs.89,82,000/- (Rupees Eighty Nine

Lakhs and Eighty Two Thousand only) upon terms and conditions

mentioned in the agreement dated 23.12.2010.

(ii) As per the said agreement, the said loan facility was repayable by

the respondents 1 and 2 in 180 equated monthly installments to the tune of

Rs. 1,16,615/-(Rupees One Lakh Sixteen Thousand Six Hundred and

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C.R.P.No.1551 of 2021

Fifteen only). The respondents 1 and 2 started to commit default in

repayment of amount.

(iii) Pursuant to the default in making the repayment of amount,

Capital First Limited has invoked the Arbitration proceedings and an award

was passed on 29.01.2015 directing the respondents 1 and 2 to pay a sum

of Rs.93,35,927.62/- together with interest at the rate of 15.25% per annum

from 09.10.2014. Despite the receipt of award, the respondents 1 and 2

have not paid the amount. Consequently, their loan account was classified

as Non Performing Assets (NPA) by Capital First Limited on 31.01.2016.

The said Capital First Limited, vide Deed of Assignment dated 08.07.2016

inter alia sold, transferred, assigned in favour of the petitioners.

(iv) Thereafter the petitioners issued notice to the respondents 1 and

2 on 06.02.2017 under Section 13 (2) of the SARFAESI ACT 2002 and

called upon them to pay an amount of Rs.1,18,34,766/- (Rupees One Crore

Eighteen Lakhs Thirty Four Thousand Seven Hundred and Sixty Six only)

as on 06.02.2017 with interest at 15.25% per annum from 07.02.2017 until

payment in full within 60 days from the date of receipt of said notice. Since

the said amount was not paid within the stipulated period, the petitioners

had taken symbolic possession of the property in excise of power conferred

on them under Section 13 (4) of SARFAESI ACT read with Rules 8 and 9

on 24.04.2017 and issued a Sale Notice dated 19.02.2021.

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C.R.P.No.1551 of 2021

(v) Consequent to the same, the respondents 1 and 2 filed a suit in

O.S.No.78 of 2021 before the District Court, Thiruvallur and ad-interim

exparte injunction was granted against the petitioners till 31.03.2021 in