N. RAMATHAL Vs. AUTHORISED OFFICER

JUDGEMENT

(1.) By consent, the writ petition has been taken up and disposed of by this order.

(2.) The petitioner, in the affidavit filed in support of this writ petition, would aver among other things that the 2nd respondent Company is an export oriented concern running the business of exporting garments to overseas buyers and for the purpose of business, it availed packing credit loan and term loan from the 1st respondent, for which, the petitioner stood as Guarantor and had given her agricultural land as security for due repayment of the loan. The 2nd respondent also hypothecated the stocks, movables and receivables. It is further averred by the petitioner that the 2nd respondent started committing default in payment of dues, and in order to recover the same, the 1st respondent has invoked the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ("SARFAESI Act" for brevity) by issuing demand notice under Section 13(2) calling upon the borrower as well as the Guarantor to pay a sum of Rs.1,31,62,429.07. The petitioner, being the Guarantor, has sent a suitable reply through counsel on 16.12.2011, denying the liability, and further points out that, in the light of Section 31(i), the provisions of SARFAESI Act are inapplicable to the agricultural lands.

(3.) However, despite the tenable reply submitted by the petitioner, the 1st respondent proceeded further and issued the possession notice, dated 09.01.2012, and it was received by the petitioner on 12.01.2012. The petitioner, challenging the same, filed S.A.No.7 of 2012 on the file of the Debts Recovery Tribunal, Coimbatore, and it was dismissed vide order, dated 04.07.2013. The petitioner, aggrieved by the dismissal of S.A.No.7 of 2012, filed further appeal.