SATHEESAN K. Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) The writ petition is filed to quash Exts.P6 and P7 notice issued by the second respondent bank under Sec. 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (in short, 'Act').

(2.) The petitioners' case is that, they are husband and wife. The first petitioner is a contractor and the second petitioner is a home maker. They had availed a housing loan from the second respondent on 4/7/2013 by creating an equitable mortgage by deposit of title deeds. The first petitioner had availed financial assistance and was doing certain contract work. Now, the respondents have issued a notice under Sec. 13(2) of the Act, which shows that no amount was deposited towards the housing loan account. In fact, the second respondent has sanctioned a working capital loan of Rs.20.00 lakh. Although the petitioners voluntarily agreed to pay the overdue amount, the respondents have invoked Sec. 13(4) of the Act and have issued Exts.P6 and P7 and are threatening to take physical possession of the secured asset. The action of the respondents is illegal and arbitrary. Hence, the writ petition.

(3.) Heard; Sri.Legy Abraham, the learned Counsel appearing for the petitioners and Sri.Tom K. Thomas, the learned Counsel appearing for the respondents.