ALLWIN RAJAN Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THE petitioner availed a housing loan of Rs. 10.19 lakhs from the respondent Bank on 13.12.2007, creating security interest over the property, having an extent of 7.25 cents of land and the building situated therein. Because of some adverse circumstances, the petitioner could not effect the repayment on time, which made the respondent Bank to proceed with steps under the SARFAESI Act, after declaring the account as NPA, which is sought to be intercepted in this writ petition.

(2.) THE learned counsel appearing for the respondent Bank, submits, on instructions, that, shortly after availing the loan, the petitioner proved himself as a chronic defaulter and the account had to be declared as NPA on 18.03.2010. But for payment of Rs. 30,000/- on 29.07.2009 and Rs. 60,000/- on 04.01.2011, no substantial repayment has been effected, resulting in 'overdue' of Rs. 5,18,286/-. In is in the said circumstances that the Bank has proceeded with steps under the SARFAESI Act, which is strictly in conformity with statutory prescription, also notifying the sale to be conducted on 05.09.2012, which is not liable to be intercepted.