AYURVEDIC TRADING AGENCIES Vs. CANARA BANK

JUDGEMENT

(1.) The petitioners, who availed cash credit facility from Kodungalloor Branch of the 1st respondent Bank, originally in the year 1992 for Rs.2,50,000/-, which was renewed in the year 2011, for Rs.30,00,000/-, have filed this writ petition under Article 226 of the Constitution of India, seeking a writ of mandamus commanding the respondents to regularise/renew the cash credit facility by giving 6 months time to pay the overdues as on date. The petitioners have also sought for a writ of mandamus commanding the respondents to permit them to repay the entire amount outstanding in 60 equal monthly installments considering COVID-19 pandemic situation. The document placed on record as Ext.P1 is a recall notice issued by the 1st respondent, which is one dated 03.09.2019. That was followed by Ext.P2 notice dated 11.10.2019 issued by the 2nd respondent authorised officer, invoking the provisions under sub-section (2) of Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act , 2002 (for brevity 'the SARFAESI Act ').

(2.) On 10.11.2020, when this writ petition came up for admission, the learned Standing Counsel for the 1st respondent . Bank sought time to get instructions and file statement.

(3.) A statement has been filed on behalf of the respondents on 02.12.2020. Paragraphs 2 to 4 of that statement read thus;