M/S.AMBUR SHOES Vs. BANK OF BARODA

JUDGEMENT

(1.) The first petitioner is represented by its Partners, availed loan facilities from the respondent-Bank which was enhanced to Rs.1000 Crores on 22.05.2017 and the said availment of loan has been secured by means of hypothecation of movable assets/properties such as plant and machinery etc., kept at the factory premises bearing Door No.91/2, 91/3B, Gudiyatham Road, Chinnavarikam Village, Vaniyambadi Taluk, Vellore District and also at Door No.1A-2, Jalal Road Extension, Malligaithope, Ambur, Vaniyambadi Taluk, Vellore District, and the said loan facility was also secured by creation of security in respect of immovable assets also.

(2.) It appears that the petitioners, due to vagaries of business and other conditions, were not able to service the debts and the respondent-Bank, vide communication dated 25.07.2019, offered One Time Settlement and however, the petitioners have failed to utilise the said offer offered by the respondent-Bank.

(3.) The petitioners failed to adhere to the repayment of the schedule and therefore, the loan account was classified as ''Non Performing Assets'' on 08.12.2017 and it was followed by a Demand Notice on 05.03.2018 u/s.13[2] of the SARFAESI Act, 2002, and in spite of receipt and acknowledgment, the petitioners had failed to comply with the terms of the said Notice. Therefore, the respondent-Bank has issued the Possession Notice dated 10.10.2019 u/s.13[4] of the Act and took the symbolic possession of the secured assets.