C T VENUGOPAL Vs. MANAGER STATE BANK OF TRAVANCORE KANNUR BRANCH STATE BANK OF TRAVANCORE KANNUR-MAIN BRANCH

JUDGEMENT

(1.) THE petitioner, a business man, availed cash credit facility from the Kannur-Main Branch of the State Bank of Travancore. When the loan became a non-performing asset, the bank took steps under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, herein after referred to as "the Act" for short, by issuing a notice under sub-section (2) of section 13 thereof. Later Ext.P1 notice dated 20.8.2011 was issued under sub-section (4) of section 13 of the Act and symbolic possession of the security furnished by the petitioner for the loan was taken. At that point of time the sum of Rs.24,26,426.82 was due from the petitioner. This writ petition is filed challenging Ext.P1 notice and interalia seeking a direction to the bank to permit the petitioner to pay the balance amount due in instalments.

(2.) IT is stated that though on the date of issuance of Ext.P1, the sum of Rs.24,26,426.82 was due, the petitioner has since then repaid a substantial portion of the loan and the balance amount due is only Rs.2,36,567/-.

(3.) UPON the petitioner complying with the aforesaid directions, the bank shall close the loan account, record full satisfaction of the loan and return the documents of title deposited by the petitioner. Needless to say, in that event the proceedings initiated by the bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 shall stand withdrawn.