N KUJAMMUHAJI Vs. AUTHORISED OFFICER CANARA BANK

JUDGEMENT

(1.) PETITIONER is a guarantor to the loan of Rs.3,00,000/- taken by the second respondent from the respondent Bank in the year 2005. Admittedly, the second respondent could not satisfy the liability on time, under which circumstances, the account was declared as 'NPA' and the Bank proceeded with steps under the SARFAESI Act, which in turn is under challenge in this writ petition.

(2.) THE learned counsel for the respondent Bank submits, on instructions, that the second respondent is a chronic defaulter, in so far as, in respect of the loan of Rs 3 lakhs availed in the year 2005, the outstanding liability as on date is nearly Rs. 7,34,459/- plus interest and such other charges. It is also pointed out that, the loan was actually availed in the year 2004 and not in 2005, as contended by the petitioner. Learned counsel further submits that the Bank has proceeded with steps after complying with the formalities as prescribed under the relevant provision of law and as such the steps taken in this regard are not assailable under any circumstance.