CANARA BANK Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The present writ petition is filed by the petitioner/Canara Bank seeking the following prayer:

(2.) The facts of the case are that one Late Shivakumar R had approached the petitioner/Bank for a housing loan in the year 2020 for an amount of Rs.2,32,00,000.00 for construction of residential building. For the said housing loan, one Mr.Praveen Kumar S and one Smt. Varalakshmi S were the co- borrowers and also Mr. Pawan Kumar, who is the co-borrower is also the legal heir of late Mr. Sivakumar. After considering the application of the borrowers, the petitioner/Bank sanctioned the housing loan facility of an amount of Rs.2,32,00,000.00. They have executed the housing loan agreement. The borrowers agreed to repay the said loan of Rs.2,32,00,000.00 within 348 monthly instalments of Rs.1,83,015.00. The borrowers agreed to pay the interest on the loan amount at the rate of 8.70% p.a. compounded monthly interest from the date of grant of loan. On 27/3/2020, one Late Shivakumar R., created mortgage of the property bearing No.1, Hoskote Municipal Khata No.6808/5517/2841/1 and PID No.23/17/86 situated at Ramakrishna Road, 2nd cross, Sir M.V. Layout, Hosakote Town, Bangalore Rural District by executing Memorandum of Deposit of Title Deed, which was registered on 27/4/2020 in the Office of the Sub-Registrar, Hoskote.

(3.) After the borrowers executed the loan documents, the petitioner/Bank released the loan amount and permitted the borrowers to utilise the housing loan amount. When the borrowers failed to pay the amount, the account was classified as Non-Performing Asset on 29/1/2022 in accordance with the directives/guidelines relating to asset classification issued by the Reserve Bank of India. The Bank issued notice under Sec. 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'SARFAESI Act') on 9/2/2022 and the same was received by the borrowers and guarantors. In spite of receipt of notices, they have neither liquidated their dues nor raised any objection. Then the Bank has issued a notice under Sec. 13(4) of the SARFAESI Act dtd. 6/5/2022 and took symbolic possession of the property.