M/S. SUNAICHANDRAN SPINTEX Vs. AUTHORIZED OFFICER

JUDGEMENT

(1.) W.P(MD).No.22929 of 2021 has been filed for a mandamus directing the respondents to extend the period of time granted by the Debts Recovery Tribunal, Madurai by its order dtd. 13/10/2021 in S.A.No.454 of 2021 by directing the petitioner to deposit a sum of Rs.70.00 lakhs to the first respondent Bank.

(2.) The petitioner is a Textile Unit and they had borrowed a sum of Rs.1.00 crore from the Tamil Nadu Industrial Investment Corporation as a working capital facility. A sum of Rs.70.00 lakhs was disbursed on 16/11/2016 and another sum of Rs.30.00 lakhs was disbursed on 25/11/2016. The property which is in dispute, was offered as a collateral security. Since the petitioner did not make any regular payments and the cheques furnished by the writ petitioner got dishonored, the first respondent corporation had initiated proceedings under Sec. 138 of Negotiable Instruments Act.

(3.) The respondent Corporation had issued a demand notice under Sec. 13(2) of the SARFAESI Act on 7/2/2018. The petitioner had issued two cheques in order to settle the amount. However, those cheques were dishonored. Hence, the respondent Corporation was constrained to issue another demand notice under Sec. 13(2) of SARFAESI Act on 25/5/2018. For the said demand notice, again the petitioner issued a cheque for a sum of Rs.9,25,000.00 and the same was also dishonored. Hence, the respondent Corporation had issued possession notice under Sec. 13(4) of the SARFAESI Act on 14/8/2018. The first auction sale notice was issued on 22/12/2018 and the same was challenged by the borrower before the Debts Recovery Tribunal in S.A.No. 73 of 2019. Though an order of interim stay was granted by the Tribunal, the stay got vacated, in view of the non compliance of the condition imposed in the said order. The cheques that were issued in compliance of the conditional order were also dishonored.