CENTRAL BANK OF INDIA, REGIONAL OFFICE, MADURAI REPRESENTED THROUGH ITS REGIONAL MANAGER, RAJA MUTHAIAH MANDRAM, 1ST FLOOR, DR. AMBEDHKAR ROAD, MADURAI TOWN Vs. GOMATHIAMMAL

JUDGEMENT

(1.) The civil revision petition arises against the fair and exorders dated 28.03.2011 passed in I.A.No.739/2010 in O.S.No. 14/2010 on the file of the Additional District Munsif Court, Ambasamuthram.

(2.) The revision petitioners being the Central Bank of India, who are the Creditors, are the defendants in the suit. The respondent herein filed the suit in O.S.No.14 of 2010 before the learned Additional District Munsif, Ambasamudram, to declare the sale proceedings of the Bank as null and void. The respondent herein stood as a guarantor for the loan availed by the borrower M/s. Marvellous Marketting and she mortgaged her property. Since the borrower has not repaid the loan, the bank issued demand notice dated 23.07.2007 under Sec. 13(2) of SARFAESI Act. Even then, the borrower has not repaid the loan amount of Rs. 2,90,000.00. Therefore, the Bank has taken symbolic possession of the property and issued possession notice dated 28.02.2008. Even after the said possession notice, the borrower has not repaid the loan amount and hence, the bank has issued sale notice which was published in the newspaper on 01.11.2008, by fixing the sale on 09.12.2008.

(3.) After issuance of the sale notice, the respondent herein has filed a suit in O.S.No.260 of 2008 before the learned District Munsif, Ambasamudram, to declare the loan borrowed by the borrower will not bind the respondent herein and for permanent injunction restraining the bank not to conduct the sale on 09.12.2008 on the ground that there are various alleged procedural irregularities. The bank has filed the written statement denying all the allegations in the plaint and by stating interalia that the suit is not maintainable as per Sec. 34 of the SARFAESI Act. In the said suit, the bank filed a petition in I.A.No.281 of 2009, under Order 7, Rule 11 of C.P.C., to reject the plaint. The Court below has rejected the plaint on 27.11.2009 on the ground that the suit is not maintainable as per Sec. 34 of the SARFAESI Act. Against the said order, no appeal has been preferred by the respondent herein and the said order has become final.