SARASAMMA K NAIR Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THE petitioner with an intent to construct a residential building thought to purchase a land and accordingly approached the Bank for providing necessary financial assistance in this regard, requesting for a loan of Rs.35 lakhs. After considering the case of the petitioner and also the credentials, the loan was granted, sanctioning the requisite amount in July, 2007. But with regard to the repayments to be effected, there occurred default on the part of the petitioner, which made the Bank to proceed against the petitioner under the relevant provisions of the SARFAESI, after declaring the account as 'NPA'.

(2.) THE learned standing counsel appearing for the respondent Bank submits that, a sum of Rs. 35 lakhs was sanctioned to the petitioner to purchase a plot and for effecting construction of a residential building therein. As per the terms and conditions of the loan, the construction had to be effected within a period of 'two years' from the date of purchase of plot. Though the plot was purchased by the petitioner after the disbursement of Rs. 10 lakhs, the petitioner did not effect the construction and the balance amount was not sought to be disbursed at any point of time. After having availed the financial assistance to the said extent, nothing was repaid by the petitioner and in the said circumstances, the Bank proceeded with further steps under the SARFAESI Act, also preferring a petition under Section 14 of the Act before the concerned Chief Judicial Magistrate's Court. The Advocate Commissioner appointed by the Court has issued Ext. P2 notice demanding vacant surrender of the premises, which is not assailable under any circumstances, submits the learned counsel for the respondent Bank. It is also stated that, since the petitioner has violated the terms and conditions of the loan, especially the duty cast upon the petitioner to effect the construction within a period two years from the date of purchase of the plot, it can be considered only as 'term loan' and as on date, a sum of Rs. 15.5 lakhs (approximately) is due from the petitioner to close the loan account.

(3.) IT is made clear that, if the petitioner commits any default in remitting the installments as above, the respondent Bank will be at liberty to proceed with further steps for realization of the entire amount in lump from the stage where it stands now. The Writ Petition is disposed of.