S. CHANDRAMOHAN Vs. THE CHIEF METROPOLITAN MAGISTRATE

JUDGEMENT

(1.) This writ petition is filed by the petitioners challenging the order passed by the Chief Metropolitan Magistrate, Chennai, in Crl.M.P.No. 979 of 2014 dated 19.3.2014 under Section 14 of the SARFAESI Act, 2002.

(2.) The Bank of Baroda, second respondent herein, filed Crl.M.P.No. 979 of 2014 before the Chief Metropolitan Magistrate, Chennai, contending that at the request of the petitioners and third respondent, the Bank sanctioned cash credit limit of Rs. 250 lakhs on 31.12.2008, which was subsequently increased as Cash Credit Hype Review of Rs. 250 lakhs and Working Capital Demand Loan of Rs. 50 lakhs. For availing the said loan, the petitioners and the third respondent have executed various documents in favour of the bank and also agreed to repay the loan amount together with interest.

(3.) The third respondent herein was the Principal Debtor of the loan. Petitioners herein are mortgagors/absolute owners of the properties mentioned in the schedule and the title deeds of the properties were also mortgaged. Petitioners and third respondent committed wilful default in spite of various demands and requests, and hence the loan account became NPA on 31.3.2011. Demand Notice under Section 13(2) of the Act was issued on 23.5.2011 for an outstanding amount of Rs. 2,86,60,940/- plus interest, which was received by the parties. Even after expiry of statutory period of 60 days, petitioners and third respondents failed to repay the dues. Hence action was initiated under section 13(4) of the Act and symbolic possession of the properties was taken on 1.10.2011 and notice was issued to the petitioners and third respondent. The said notice was also published in two newspapers on 2.10.2011, and in spite of taking best efforts, the Bank was unable to take physical possession of the secured assets and bring the said properties for auction sale. Hence the said petition was filed before the learned Chief Metropolitan Magistrate.