N.SUMATHI Vs. AUTHORISED OFFICER

JUDGEMENT

(1.) This writ petition is filed for a Writ of Certiorarified Mandamus to quash the proceedings of the second respondent Bank pertaining to the letter dated 22.03.2012 freezing and appropriating the Fixed Deposit standing in the joint names of the petitioners amounting to a sum of Rs. 52,06,438/- with accrued interest under the SARFAESI Act towards the loan outstanding in respect of M/s. San Shoes Loan and thereby direct the 2nd respondent to release the Fixed Deposit made in receipt No. CDRA/09: 988185 with accrued interest thereon. The first petitioner is the wife of the second petitioner. It is seen from the narration of facts that the second petitioner Namachivayam entered into partnership with one P.S. Srinivas on 5th March 2007, for running the business in the name of "San Shoes". The firm's business was manufacturing, processing finishing, distribution, trading, exporting and importing of leather products. In respect of the business, the firm availed credit facilities from the respondent bank and loan documents were executed. Equitable mortgage was created by one of the partners P.S. Srinivas over his assets.

(2.) It is stated that the Bank had already initiated action as against the properties of the said Srinivas and possession notice was issued on 14.02.2012. The second petitioner Namachivayam states that he retired from the partnership firm as early as 01.04.2010. The said fact was intimated to the respondent Bank.

(3.) It is a matter of record that the petitioners made a joint fixed deposit in the second respondent Bank on the sale proceeds received on the sale of their property amounting to Rs. 52,06,438/- for a period of 12 months from 07.04.2011.