HARIDAS SHENOY Vs. AUTHORIZED OFFICER CANARA BANK

JUDGEMENT

(1.) HEARD the learned counsel for the petitioners and the learned standing counsel for the respondent Bank.

(2.) THE first petitioner is the proprietor of M/s. Niash Industries and the second petitioner is his wife. It appears that M/s. Niash Industries availed of an Open Cash Credit (OCC) and a term loan and as at present amounts that are due towards the aforesaid liabilities are Rs.12.35 lakhs and Rs.24.27 lakhs respectively. These liabilities are secured by the property mortgaged by the second petitioner. On account of the default committed, SARFAESI proceedings were initiated and finally the mortgaged property was sold by the Bank to Mr.M.C.Ratnakaran for Rs.69.54 lakhs and the amount has been deposited. However, the first petitioner challenged the sale before the Debts Recovery Tribunal by filing SA No.413/12 and confirmation of the sale has been stayed by the Tribunal. I

(3.) AT that stage, first petitioner approached the Bank seeking to permit him to settle the gold loan and the housing loan. On account of the pendency of the proceedings in relation to the loans availed of by the proprietorship and also on account of a gold loan availed of by the second petitioner, the Bank did not permit the first petitioner to close his gold loan account and the housing loan account. It is in these circumstances, this writ petition has been filed.