R. ANANDAPADMANABAN Vs. CHIEF METROPOLITAN MAGISTRATE

JUDGEMENT

(1.) The petitioner has come up with the present writ petition for a Writ of Certiorari, to call for the records of the order passed by the learned Chief Metropolitan Magistrate, 1st respondent herein, in Crl.M.P.No.6052 of 2014, dated 21.06.2016 and to quash the same.

(2.) Indiabulls Housing Finance Ltd.,/ respondent No.2 is a Financial Institution. Respondents 3 to 5/borrowers have approached the respondent No.2 for grant of a loan of Rs.3,08,91,574.00 against equitable mortgage. A loan agreement dated 30.03.2012 was entered into between the respondents 3 to 5 and the respondent No.2. The loan was secured by the mortgage of the property bearing Old Door No.18, New Door No.2, Baskara Sastri Street, Rangarajapuram, Kodambakkam, Chennai - 600 024. The loan was sanctioned and disbursed. The borrowers committed default in repayment. The loan account was classified as "non-performing asset" [NPA].

(3.) The respondent No.2 has initiated action for enforcement of the security interest. It has issued notice dated 07.06.2013 under Sec. 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short "SARFAESI Act") to the borrowers calling upon them to repay the dues working out to Rs.3,32,18,047.00. Thereafter, the respondents 3 to 5 i.e. the borrowers, respondent No.2/secured creditor and a third party, namely, Rakesh M.Jain, who has agreed to purchase the property for Rs.5 crore, have entered into a Tripartite Agreement dated 03.01.2014. The financier and the borrowers arrived at a settlement and the loan to be repaid was fixed at Rs.3,56,00,000.00 and this amount was agreed to be paid by the third party from the total sale consideration of Rs.5 crore and the balance amount was agreed to be paid to the respondents 3 to 5. Subsequently, the Tripartite Agreement was terminated on 23.06.2014, as the third party has failed to comply with the terms and conditions of the said Agreement.