TOM THOMAS OLASSAYAIL, M.K.RAGHAVAN ROAD, KOOVAPPADAM, KOCHI Vs. STATE BANK OF INDIA OVERSEAS BRANCH, WILLINGTON ISLAND, REPRESENTED BY ITS MANAGER, PIN

JUDGEMENT

(1.) The appeal is directed against the order dated 08.04.2016 in R.P No.981 of 2014 in W.P.(C) No.8259 of 2009, by the petitioners in the writ petition who were respondents 1 and 2, in the Review Petition.

(2.) The subject matter relates to the proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, SARFAESI Act). The first respondent in the appeal is the secured creditor, who is the 1st respondent in the writ petition and the petitioner in the review petition. The second respondent company was the borrower. The appellants were the original Directors of the second respondent company. They have guaranteed the due repayment of the credit facilities. The third respondent in the appeal is the assignee of the shares of the appellants in the second respondent company. For the sake of convenience, hereinafter, the appellants are referred to as guarantors; the 1st respondent as the creditor; the 2nd respondent as the borrower company; and the 3rd respondent as the 3rd respondent.

(3.) From the year 1994, various credit facilities were availed of by the borrower company from the creditor bank. Towards security for the credit facilities, immovable properties of the borrower company, as well as of the guarantors were equitably mortgaged in favour of the creditor. While so, as is seen from the records, as per Exts.P1 and P2 share transfer forms, the shares held by the guarantors in the company were transferred by them to the third respondent. Since the accounts became irregular and non-performing assets, proceedings were initiated by the creditor for recovery of the debt under the SARFAESI Act. Notices under Sec. 13(2) of the SARFAESI Act dated 26.11.2008, marked as Exts.P3 and P4, were issued by the creditor. Since the amounts as demanded were not paid and the liabilities were not settled, the creditor continued with the steps under the SARFAESI Act. The proceedings under the SARFAESI Act were sought to be intercepted by the guarantors/appellants by filing the writ petition.