AYSHA Vs. KOZHIKODE DISTRICT CO-OPERATIVE BANK

JUDGEMENT

(1.) Petitioners are the legal heirs of late Soopy Haji, who stood as guarantor for the loan availed of by the 3rd respondent. Default was committed by the 3rd respondent, as a result, SARFAESI proceedings were initiated and Ext.P3 is the notice issued under Section 13(2) of the SARFAESI Act. It is challenging Ext.P3, the writ petition is filed contending that Ext.P3 has been issued in the name of the deceased and not in the name of the legal heirs against whom the proceedings are now continued.

(2.) I heard the learned standing counsel appearing for the respondent Bank. Despite submissions made, respondents also could not satisfy this Court that any notice has been issued to the legal heirs of the deceased against whom recovery action is now initiated.

(3.) Although the Bank is entitled to recover its dues by initiating proceedings under the SARFAESI Act, when such proceedings are initiated against the legal heirs of the deceased guarantor, necessarily those legal heirs should be put on notice in terms of the statutory provisions. In this case, there is no material whatsoever that this requirement has been complied with.