WE BUILD Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) Instant appeal is filed being aggrieved by the judgment dated 15.10.2020 in W.P.(C) No. 12035 of 2020.

(2.) Facts leading to the writ appeal are that appellant is a private limited company incorporated under the Companies Act, 1968, by engineers and other professionals. In the year 2009, appellant approached the erstwhile State Bank of Travancore, Poojapura Branch, for expanding business. The Directors of appellant company mortgaged 5 items of property, out of which, 2 items are residential building. Those 5 items of property are treated as secured assets. Loan arrangement was a cash credit overdraft limit. The sanctioned limit of the loan was Rs.987 lakhs, including bank guarantee. The operating level of aggregate CCOD level was tentatively fixed as Rs.657 lakhs.

(3.) Thereafter, when the State Bank of Travancore was acquired by the State Bank of India, it was intimated by the respondent Bank that adhoc OD limit of Rs.4 lakhs sanctioned by Exhibit P2 would remain closed and Exhibit P5 notice was issued intimating that the loan account has already been declared as NPA and to clear the entire outstanding dues. The appellant company issued a reply, explaining the fact that at no point of time, the account was in default and hence, there is no chance to declare the account as Non Performing Asset. Later, after one year, Exhibit P9 notice was issued with the same contentions as in Exhibit P8. The appellant has submitted a reply to the same. Thereafter, Exhibit P10 communication was issued by the Bank stating that the first respondent is withdrawing Exhibits P5 and P8 notices stating that inadvertent mistakes were crept in the notices. But, after a few days, Exhibit P11 notice was issued stating the same contention as that of Exhibits P5 and P8.