WP(C)/1667/2025 of FLORICAN PRIME LAND LLP, Vs THE RECOVERY OFFICER, on 11 April 2025

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH FRIDAY, THE 11TH DAY OF APRIL 2025 / 21ST CHAITHRA, 1947 WP(C) NO. 1667 OF 2025 PETITIONER: FLORICAN PRIME LAND LLP, 62/1232H, J FLOOR, MAGNUS ARCADE, CHEROOTTY ROAD, KOZHIKODE REPRESENTED BY ITS MANAGING PARTNER, MOHAMED HARIS KUNDUKAVIL, SON OF MOHAMMED KUTTY K.K., AGED 45 YEARS, KUNDUKAVIL, KOOTALINGAL, KONDOTTY, CHIRAYIL P.O., MALAPPURAM, PIN - 673032 BY ADVS. SMT.ANITHA MATHAI MUTHIRENTHY SMT.ARYA SURESH SRI.ASWIN KURIAKOSE RESPONDENTS:

THE RECOVERY OFFICER, DEBTS RECOVERY TRIBUNAL-I, KSHB BUILDING, 5TH FLOOR, PANAMPILLY NAGAR, ERNAKULAM, KERALA, PIN - 682036

M/S. CANARA BANK, CHEROOTY ROAD BRANCH, COURT ROAD, KOZHIKODE, REP. BY ITS CHIEF MANAGER AND AUTHORIZED OFFICER, PIN - 673001

M/S. ANNAM STEEL PVT. LTD.,

244. T.H ROAD, THODIARPET, CHENNAI COPORATE OFFICE AT 11/40 E, FASHION TOWER, CHERROTTY ROAD, KOZHIKKODE

: 2 : THROUGH ITS MANAGING PARTNER E.T. FIROZ, PIN - 673001

S/O. E.T. MUHAMMED BASHEER, SOUMYA,2/1788A, FLORICAN ROAD, KALATHIL AVENUE, CIVIL STATION, MALAPPARAMBU, KOZHIKODE, PIN - 673020

C. VIJAYAKUMAR, S/O. CHELLIAH, NO.8, RATHINASABHAPATHY STREET, CHENNAI, PIN - 600021

NOOR MUHAMMED NOORISHA, S/O. KHALID HAJI, KALLIYATH HOUSE, 34/1864, MAMANGALAM, ERNAKULAM, PIN - 682025

M/S. PLENTY LAND DEVELOPERS LLP, 41/2299, 3RD FLOOR, MALABAR GATE, RAM MOHAN ROAD, PUTHIYARA POST, KOZHIKODE REPRESENTED BY ITS DESIGNATED PARTNER, E.T. FIROZ, PIN - 673004

M/S. FERVENT BUILDERS AND DEVELOPERS PVT. LTD., 41/2299, 2ND FLOOR, MALABAR GATE, RAM MOHAN ROAD, PUTHIYARA POST, KOZHIKODE, REPRESENTED BY ITS DIRECTOR, A.K. NISHAD, PIN - 673004

M/S. KARADAN PROPERTIES AND DEVELOPERS, PUTHIYARA P.O., KOZHIKODE REPRESENTED BY ITS MANAGING PARTNER SULAIMANKARADAN, PIN - 673004

P.P. MUNEER, S/O. MUSTHAFA HAJI, BUSHRAMANZIL, KOTTAPPURA P.O., NEELESWARAM, PIN - 670314

P. YUSUF ALI, S/O. ABDULLA, RUMIYAS HOUSE,

: 3 : KOTTAPPURAM P.O., NEELESWARAM, KANHANGAD, PIN - 670314

K.K. ASHRAF, S/O. ABOOBACKER, C.242, KORAKKATHPARAMBU, 10, CHILAVOOR 12/61, MOOZHICKAL, KOZHIKODE, PIN - 673001

A.T. MUHAMMED ALI, S/O. AHAMMED A.T., NADUVILAKANDI, KURACKAL HOUSE, 12/61, KUTTIKKATTOOR P.O., KOZHIKODE, PIN - 673008

ABDUL NAVAF, S/O. NALANCHIRAKKAL MUHAMMED, ALUVANGAL HOUSE, KOLATHARA P.O., KOZHIKODE, PIN - 673655

MUHAMMED FAZIL, S/O. USMAN, KARADAN HOUSE, PALATHINGALMUNDA, EDAKKARA P.O., MALAPPURAM, PIN - 679331

SULAIMAN KARADAN, S/O. MUHAMMEDKARADAN, KARADAN HOUSE, PALATHINGALMUNDA, EDAKKARA P.O., MALAPPURAM, PIN - 679331

SARA, W/O. SULAIMAN, KARADAN HOUSE, PALATHINGAL MUNDA, EDAKKARA P.O., MALAPPURAM, PIN - 679331

MUHAMMED FAVAZ, S/O. KUNHIMOIDEEN KUTTY, FLAT NO.12B, SKYLINE OCEANIC, BEACH ROAD, KOZHIKODE, PIN - 673032

ABDUL LATHEEF, S/O. E.P. MAMMU, RAFA PARK HOUSE, THALASSERY, KANNUR, PIN - 670101

: 4 :

P.K. SIVADASA MENON, S/O. P.K. BALASUNDARAMENON, LAKSHMI KRIPA, PARAVOOR, ERNAKULAM, PIN - 683513

ANEES ADAM K.M., S/O. T. MUNEER, KOYAPPATHODY VILLA, KRISHNAN NAIR ROAD, NEAR MALIKADAVE, NEAR GOVT. ITI, KOZHIKODE, PIN - 673010

SYED MUHAMMED THAYYIL, S/O. THAYYIL KHADAR HAJI, THAYYIL HOUSE, KATTACHIRA, B.P ANGADI P.O., VENGALOOR, TIRUR, MALAPPURAM, PIN - 676102

T. AHAMED THOTTIYIL, S/O. P.K. ABDULLA, THOTTIYIL HOUSE, KOTTAKKAL P.O., MALAPPURAM, PIN - 676503

V. ABDUL RAZACK, S/O. MUHAMMED, BARIKODAN HOUSE, ERNAD, MALAPPURAM, PIN - 673639

PUNJAB NATIONAL BANK, EROTH CENTRE, BANK ROAD, KOZHIKODE, REP.BY ITS CHIEF MANAGER, PIN - 673016 ADDL.R26 ASTERIA AVENUES LLP, 80/127, PATEL MARG, MANSARAVAR, JAIPUR, RAJASTHAN-302 020, REPRESENTED BY DESIGNATED PARTNER-PAVAN PERIWAL. ADDL.R27 REKHA JAIN, AGED 43 YEARS, SANGAWA, GANSINGHPURA, JODHPUR, RAJASTHAN-342 901. (ADDITIONAL RESPONDENTS 26 AND 27 ARE IMPLEADED AS PER ORDER DATED 28.02.2025 IN IA NO.3/2025 IN WP(C) NO.1667/2025)

: 5 : By ADVS. SRI.C.AJITH KUMAR SRI.PRAVEEN HARIHARAN SRI.R.JAIKRISHNA SMT.NARAYANI HARIKRISHNAN SRI.ANISH P. SRI.C.S.ARUN SHANKAR SRI.AKHIL SHAJI THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 18.03.2025 ALONG WITH WP(C)No.8019/2025 AND THE COURT ON 11.04.2025 DELIVERED THE FOLLOWING:

: 6 : IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH FRIDAY, THE 11TH DAY OF APRIL 2025 / 21ST CHAITHRA, 1947 WP(C) NO. 8019 OF 2025 PETITIONERS:

ASTERIA AVENUES LLP., 80/127, PATEL MARG, MANSARAVAR, JAIPUR, RAJASTHAN, PIN - 302020

REKHA JAIN, AGED 43 YEARS SANGAWA, GANSINGHPURA, JODHPUR, RAJASTHAN, PIN - 342901 BY ADVS. SRI.R.JAIKRISHNA SMT.NARAYANI HARIKRISHNAN SRI.C.S.ARUN SHANKAR SRI.ANISH P. SRI.AKHIL SHAJI RESPONDENTS:

RECOVERY OFFICER, DEBTS RECOVERY TRIBUNAL-I, KSHB BUILDING, 5TH FLOOR, PANAMPILLY NAGAR, ERNAKULAM, PIN - 682036

: 7 :

CANARA BANK, CHEROOTY ROAD BRANCH, COURT ROAD, KOZHIKODE, REPRESENTED BY ITS CHIEF MANAGER AND AUTHORIZED OFFICER, PIN - 673001

PUNJAB NATIONAL BANK, EROTH CENTRE, BANK ROAD, KOZHIKODE, REPRESENTED BY ITS BRANCH MANAGER, PIN - 673011

FLORICAN PRIME LAND LLP., 62/1232H, J FLOOR, MAGNUS ARCADE, CHEROOTTY ROAD, KOZHIKODE REPRESENTED BY ITS MANAGING PARTNER–MOHAMED HARIS, PIN - 673001

M/S. ANNAM STEELS PVT. LTD., HAVING ITS REGISTERED OFFICE AT 244, T.H.ROAD, THONDIARPET, CHENNAI – 600 081 AND CORPORATE OFFICE AT 11/40E, FASHION TOWER, CHEROOTY ROAD, KOZHIKODE, REPRESENTED BY ITS MANAGING DIRECTOR SRI. E.T. FIROZ, PIN - 600081

E.T. FIROZ, S/O. E.T. MUHAMMED BASHEER, SOUMYA, 2/1788A, FLORICAN ROAD, KALATHIL AVENUE, CIVIL STATION, MALAPPARAMBU, KOZHIKODE, PIN - 673020

C. VIJAYAKUMAR, S/O. CHELLIAH, NO. 8, RATHINA SABHAPATHY STREET, CHENNAI, PIN - 600021

NOOR MUHAMMED NOORISHA, S/O. KHALID HAJI, KALLIYATH HOUSE, 34/1864, MAMANGALAM, ERNAKULAM, PIN - 682025

: 8 :

M/S. PLENTY LAND DEVELOPERS LLP., REGISTERED OFFICE AT 41/2299, 3RD FLOOR, MALABAR GATE, RAM MOHAN ROAD, PUTHIYARA POST, KOZHIKODE, REPRESENTED BY ITS DESIGNATED PARTNER E.T. FIROZ, PIN - 673004

M/S. FERVANT BUILDERS AND DEVELOPERS PVT. LTD., REGISTERED OFFICE AT 41/2299, 2ND FLOOR, MALABAR GATE, RAM MOHAN ROAD, PUTHIYARA POST, KOZHIKODE, REPRESENTED BY ITS DIRECTOR, A.K. NISHAD, PIN - 673004

M/S. KARADAN PROPERTIES AND DEVELOPERS, PUTHIYARA P.O., KOZHIKODE, REPRESENTED BY ITS MANAGING PARTNER SULAIMAN KARADAN, PIN - 673004

P.P. MUNEER, S/O. MUSTHAFA HAJI, BUSHRA MANZIL, KOTTAPPURAM P.O., NEELESWARAM, KASARAGODE, PIN - 670314

SRI. P. YUSUF ALI, S/O. ABDULLA, RUMIYAS HOUSE, KOTTAPPURAM P.O., NEELESWARAM, KANHANGAD, KASARAGODE, PIN - 670314

K.K. ASHRAF, S/O. ABOOBACKER, C.242, KORAKKATH PARAMBU, 10, CHILAVOOR, MOOZHICKAL, KOZHIKODE, PIN - 673001

A.T. MUHAMMED ALI, S/O. AHAMMED A.T., NADUVILAKANDI KURACKAL HOUSE, 12/61, KUTTIKKATTOOR P.O., KOZHIKODE, PIN - 673008

ABDUL NAVAF, S/O. NALANCHIRAKKAL MUHAMMED, ALUVANGAL HOUSE,

: 9 : KOLATHARA P.O., KOZHIKODE, PIN - 673655

MUHAMMED FAZIL, S/O. USMAN, KARADAN HOUSE, PALANTHINGAL MUNDA, EDAKKARA P.O., MALAPPURAM, PIN - 679331

SULAIMAN KARADAN, S/O. MUHAMMED KARADAN, KARADAN HOUSE, PALANTHINGAL MUNDA, EDAKKARA P.O., MALAPPURAM, PIN - 679331

SARA, W/O. SULAIMAN, KARADAN HOUSE, PALANTHINGAL MUNDA, EDAKKARA P.O., MALAPPURAM, PIN - 679331

MUHAMMED FAVAS, S/O. KUNHI MOIDEEN KUTTY, FLAT NO. 12B, SKYLINE OCEANIC, BEACH ROAD, KOZHIKODE, PIN - 673032

ABDUL LATHEEF, S/O. E.P. MAMMU, RAFA PARK HOUSE, THALASSERY, KANNUR, PIN - 670101

P.K. SIVADASA MENON, S/O. P.K. BALASUNDARA MENON, LAKSHMI KRIPA, PARAVOOR, ERNAKULAM, PIN - 683513

SRI. ANEES ADAM K.M., S/O. T. MUNEER, KOYAPPATHODY VILLA, KRISHNAN NAIR ROAD, NEAR MALIKADAVE, NEAR GOVT. ITI, KOZHIKODE, PIN - 673010

SYED MUHAMMED THAYYIL, S/O. THAYYIL KHADAR HAJI, THAYYIL HOUSE, KATTACHIRA, B.P. ANGADI P.O., VENGALOOR, TIRUR, MALAPPURAM, PIN - 676102

: 10 :

DR. T. AHAMED THAYYIL, S/O P.K. ABDULLA, THOTTIYIL HOUSE, KOTTAKKAL P.O., MALAPPURAM, PIN - 676503

V. ABDUL RAZACK, S/O. MUHAMMED, BARIKODAN HOUSE, ERNAD, MALAPPURAM, PIN - 673639 BY ADVS. SRI.C.AJITH KUMAR SRI.PRAVEEN HARIHARAN SRI.G.HARIHARAN(K/66A/1976) SMT.K.S.SMITHA(K/106/2012) SRI.AMAL DEV D(K/001570/2018) SMT.SNEHA M.S.(K/001669/2023) SRI.ABHIJITH E.R.(K/000352/2021) SMT.E.SILPA(K/130/2015) THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 18.03.2025 ALONG WITH WP(C) No.1667/2025 AND THE COURT ON 11.04.2025 DELIVERED THE FOLLOWING:

: 11 : N. NAGARESH, J. ````````````````````````````````````````````````````````````` W.P.(C) Nos.1667 and 8019 of 2025 ````````````````````````````````````````````````````````````` Dated this the 11th day of April, 2025

J U D G M E N T

~ ~ ~ ~ ~ ~ ~ ~ ~ The successful bidder in an e-auction conducted on 27.12.2024 by the Recovery Officer, Debts Recovery Tribunal-I, Ernakulam in DRC No.78/2020 is the petitioner in W.P.(C) No.1667/2025. The writ petition has been filed seeking to quash order dated 09.01.2025 passed by the Recovery Officer rejecting the petitioner's application for extension of time to remit the balance 75% of the bid amount.

2. The e-auction was conducted on 27.12.2024. The petitioner successfully bid in auction for an amount of ₹5,54,00,000/-. The petitioner submits that they complied with the requirements under Rule 57(1) o the 2nd Schedule to the

: 12 : Income Tax Act, 1961 and remitted 25% of the bid amount totalling to ₹1,38,50,000/- including AMD. The balance ₹4,15,50,000/- was to be remitted on or before 10.01.2025. The petitioner submits that the petitioner duly remitted an amount of ₹89,04,010/- towards the balance 25% amount, on 27.12.2024.

3. The petitioner faced unexpected delay in arranging the balance 75% bid amount. The petitioner therefore filed Ext.P6 IA No.2/2025 on 03.01.2025 seeking to grant an extension of 20 days to remit the balance amount. The 1st respondent, however, rejected the petitioner's request for extension, as per Ext.P7 order.

4. The petitioner states that though the 1st respondent-Recovery Officer may not have the power to extend the time for repayment, this Court can indeed extend the time invoking Article 226 of the Constitution of India, contends the petitioner.

: 13 :

5. W.P.(C) No.8019/2025 is filed by the petitioners, who were also participants in the auction sale, seeking to direct the 1st respondent to confirm the sale of lot No.4 property covered in Ext.P2 admeasuring 168.39 Ares (4 Acres 16 Cents) in favour of the petitioners and to issue sale certificate in their name. The petitioners state that the scheduled properties of the borrowers were put up for sale in five lots and the petitioners bid for lot No.4 property admeasuring 168.39 Ares. The petitioners paid EMD of ₹55 lakhs. They had offered ₹5,52,00,000/- for the lot No.4 property. The 4th respondent was the successful bidder. But, the 4th respondent did not remit the amount in time.

6. The petitioners stated that the 4th respondent ought to have paid the entire bid amount within the stipulated time. As the 4th respondent did not pay the bid amount within the statutorily prescribed time, the 1st respondent is legally bound to confirm the sale of lot No.4 in favour of the petitioners

: 14 : and to issue sale certificate.

7. The counsel for the petitioner in W.P.(C) No.8019/2025 relied on the judgment of the Hon’ble Apex Court in C.N. Paramsivan and another v. Sunrise Plaza Tr Partner and others [2013 (4) SCR 1], of the Karnataka High Court in Ramesh Mehar v. The Recovery Officer and others [2013 KHC 3220], of the Bombay High Court in Kumar Urban Development Private Limited v. Indian Bank and others [2019 KHC 4805] and of this Court in Somasundaram v. Chief Commissioner of Income Tax and another [2017 KHC 737].

8. The Bank filed counter affidavit in W.P.(C) No.8019/2025. The Bank submits that the writ petition is not maintainable as the petitioners have alternate remedy. Even though the petitioners participated in the e-auction, their offer was less than that of the successful bidder. Therefore, the bid was confirmed in favour of the successful bidder. The bid has attained finality. The successful bidder has remitted the entire

: 15 : bid amount on 27.02.2025. The petitioners have approached this Court after withdrawing the EMD remitted by them, which itself shows that there is no bona fide on the part of the petitioners. W.P.(C) No.8019/2025 is therefore liable to be dismissed.

9. I have heard the learned counsel for the petitioners in both the writ petitions and the learned Standing Counsel representing the Bank.

10. As far as W.P.(C) No.1667/2025 is concerned, when the said writ petition came up for admission, this Court passed an interim order dated 17.01.2025 directing the Recovery Officer to defer coercive e proceedings till 10.02.2025. The petitioner remitted ₹1.25 Crores after the interim order dated 17.01.2025. On 14.02.2025, this Court extended the time for making payment by two weeks. The Bank has stated in their counter affidavit dated 10.03.2025 in W.P.(C) No.8019/2025 that the petitioner has remitted the entire

: 16 : bid amount on 27.02.2025, within the time stipulated by this Court. In view of the said development, no further orders are necessary in W.P.(C) No.1667/2025.

11. As regards W.P.(C) No.8019/2025, the petitioners therein contend that as the successful bidder failed to remit the bid amount within the stipulated time, the 1st respondent is liable to confirm the sale of lot No.4 property in favour of the petitioners and also to issue sale certificate. The contention of the petitioners is that as per Rules, the bid amount ought to have been paid within the stipulated time and the time cannot be extended. In this regard, I find that though the Tribunal may not have power to enlarge the time, this Court, in exercise of the powers under Article 226 of the Constitution of India, has the power to enlarge the time in exceptional and appropriate cases. This Court has granted reasonable time to the successful bidder to pay the balance amount and the balance amount has been remitted by the successful bidder.

: 17 : Furthermore, the petitioners have alternate efficacious remedy in challenging the sale proceedings. In the circumstances of the case, W.P.(C) No.1667/2025 is disposed of recording the statement of the Standing Counsel for the Bank that the petitioner has remitted the entire bid amount on 27.02.2025. W.P.(C) No.8019/2025 is dismissed. Sd/- N. NAGARESH, JUDGE aks/09.04.2025

: 18 : APPENDIX OF WP(C) 1667/2025 PETITIONER’S EXHIBITS Exhibit P1 A TRUE COPY OF THE PROCLAMATION OF SALE IN DRC NO. 78/2020 WITH E-SALE NO. 74/2024 DATED 21/10/2024 Exhibit P2 A TRUE COPY OF THE ONLINE AUCTION BID FORM SUBMITTED BY THE PETITIONER Exhibit P3 A TRUE COPY OF THE RECEIPT EVIDENCING PAYMENT OF RS. 5,50,000/- TOWARDS EMD ON 24/12/2024 Exhibit P4 A TRUE COPY OF THE EMAIL COMMUNICATION DATED 27.12.2024 Exhibit P5 A TRUE COPY OF THE RECEIPT EVIDENCING THE PAYMENT OF ₹89,04,010/ Exhibit P6 A TRUE COPY OF APPLICATION IA NO.2/2025 FILED BY THE PETITIONER BEFORE THE 1ST RESPONDENT Exhibit P7 A TRUE COPY OF THE ORDER DATED 09/01/2025 IA NO. 2/2025 IN DRC NO. 78/2020 PASSED BY THE 1ST RESPONDENT REJECTING THE PETITIONER’S REQUEST FOR EXTENSION OF TIME Exhibit P8 A TRUE COPY OF THE RECEIPT DATED 10/02/2025 EVIDENCING THE PAYMENT OF RS.1,25,00,000/- MADE BY THE PETITIONER TO THE 2ND RESPONDENT BANK

: 19 : APPENDIX OF WP(C) 8019/2025 PETITIONERS’ EXHIBITS Exhibit P1 A TRUE COPY OF THE JUDGMENT OF THE DEBT RECOVERY TRIBUNAL IN TA 44/2017 DATED 28.9.2020 Exhibit P2 A TRUE COPY OF THE SALE PROCLAMATION PUBLISHED BY THE 1ST RESPONDENT DATED 21.10.2024 Exhibit P3 A TRUE COPY OF THE ONLINE AUCTION BID FORM UPLOADED BY THE PETITIONERS Exhibit P4 A TRUE COPY OF THE DECLARATIONS SUBMITTED BY THE PETITIONERS BEFORE 1ST RESPONDENT DATED 16.12.2024 Exhibit P5 A TRUE COPY OF THE INTERIM ORDER PASSED BY THIS HON’BLE COURT IN WP(C) 1667/2025 DATED 14.2.2025 Exhibit P6 A TRUE COPY OF THE EMAIL COMMUNICATION ISSUED BY THE 1ST PETITIONER TO 1ST RESPONDENT DATED 22.2.2025 Exhibit P7 A TRUE COPY OF THE NOTICE ADJOURNING THE SALE UPLOADED BY THE 1ST RESPONDENT IN THE WEBSITE OF DRT DATED 18.12.2024 Exhibit P8 A TRUE COPY OF THE SCREENSHOT OF THE DRT WEBPORTAL OF NOTICES UPLOADED DATED NIL RESPONDENT EXHIBITS Exhibit-R2(a) TRUE COPY OF THE ‘A’ DIARY PROCEEDINGS DATED 16/12/2024 IN R.C 78/2020 OF THE 1ST RESPONDENT

: 20 : Exhibit-R2(b) TRUE COPY OF THE E-AUCTION DETAILS DATED 27/12/2024 IN RESPECT OF THE AUCTION CONDUCTED BY THE 1ST RESPONDENT FOR THE PROPERTY COVERED BY EXT.P2