PRECISION FASTENINGS Vs. STATE BANK OF MYSORE CHENNAI

JUDGEMENT

(1.) The Petitioner seeks for issuance of a writ of certiorarified mandamus to call for the records pursuant to the notice dated 8.6.2009 under Section 13(2) of the Securitisation and Reconstruction of Financial Asset and Enforcement of Security Interest Act (in short "SARFAESI Act") and the possession notice dated 23.11.2009 issued under Section 13(4) of the SARFAESI Act, quash the same and to direct the Respondent to restore possession of the Petitioner.

(2.) The Petitioner in his supporting affidavit would contend that the Petitioner approached the Respondent/ Bank for credit facilities. On 7.1.1995, the credit facilities sanctioned by the Respondent were cash credit limit for Rs. 30 lakhs.

(3.) In respect of the action of the Petitioner, there was a claim by the Respondent before the Debts Recovery Tribunal-II, Chennai, in O.A. No. 28 of 2008 for recovery of a sum of Rs. 33,18,464/- with interest at 15% per annum from 23.04.2003 with quarterly rests till realisation with costs. The Petitioner is stated to have filed a suit before this Court in C.S. No. 791 of 2003 which was transferred to C.S. No. 791 of 2003 which was transferred to the Debts Recovery Tribunal-I, Chennai and thereafter, to the Debts Recovery Tribunal-II, Chennai, and renumbered as Counter Claim No. 1 of 2009. There was a notice initially issued under Section 13(2) of the SARFAESI Act on 19.9.2003. The Petitioner sent his objection to the said notice on 17.12.2003. The Petitioner also filed a Writ Petition, W.P. No. 46951 of 2002 which was dismissed by this Court on 29.4.2003 giving liberty to the Respondent/ Bank to proceed with its claim. The Respondent's claim in O.A. No. 28 of 2008 and the Petitioner's Counter Claim No. 1 of 2009 were disposed of by a common order by the Debts Recovery Tribunal-II, Chennai, on 4.2.2009. The Debts Recovery Tribunal in its ultimate conclusion held that the Respondent/Bank is entitled for recovery certificate to recover a sum of Rs. 33,18,464/-with interest at 15% per annum with quarterly rests from 23.4.2003 till realisation apart from costs of the O.A. Such recovery was directed as against Defendants 1 to 4 personally and by sale of mortgaged and hypothecated properties scheduled to the O.A. Necessary direction for issuance of Recovery Certificate was also ordered. It is in the above stated background, the Petitioner has come forward with the writ petition with a prayer couched above.