SUBAIDA Vs. AUTHORISED OFFICER

JUDGEMENT

(1.) The petitioner has filed this writ petition under Article 226 of the Constitution of India, seeking a writ of mandamus commanding the 2nd respondent Bank to refrain from taking possession and selling the property offered as security, in public auction. The petitioner has also sought for an order directing the 2nd respondent Bank to permit her to pay the balance amount in monthly instalments and also to regularise the loan account.

(2.) Going by the averments in the writ petition, the petitioner stood as guarantor for a credit loan of Rs.90,00,000/- availed for the business of her family friend, for which the property owned by her was given as security. The document marked as Ext.P1 is a certificate issued by the Standing Disability Assessment Board as per which, the petitioner is having permanent disability of 30%. On account of the default in repayment, the Bank initiated recovery proceedings by issuing notice under sub-section (2) of Section 13 of the Securitisation and Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002. The document marked as Ext.P2 is a notice issued by the respondent Bank under sub-section (2) of Section 13 of the said Act, whereby the petitioner being the guarantor of the loan, was required to pay a sum of Rs.1,04,36,232.90.

(3.) On 22.10.2020, when this writ petition came up for admission, the learned Standing Counsel for Canara Bank sought time to get instructions.