MEKALA RAJ Vs. PRESIDING OFFICER

JUDGEMENT

(1.) Heard Mr. R. Vijayakumar, learned counsel appearing for the Petitioner, Mr. N. Dilip Kumar, learned counsel appearing for the Respondents 1 and 2 and Mr .J. Lawrance, learned counsel for the third respondent and carefully perused the materials placed on record.

(2.) This writ petition has been filed to quash the order, dated 05.08.2015, passed by Debts Recovery Tribunal, Madurai/First respondent, in S.A. No. 304 of 2012 and to direct the second respondent - Bank and the Third Respondent - purchaser to re-deliver the possession of the property in question to the Writ Petitioner.

(3.) The writ petitioner stood as a guarantor for a cash credit and overdraft facility availed by one Mr. G. Radhakrishnan from the second respondent - Bank to the tune of Rs. 48,00,000.00. The borrower defaulted in repayment resulting in issuance of a demand notice, dated 21.10.2010, under Sec. 13(2) of SARFAESI Act. A copy of the said notice was marked to the petitioner with an instruction to induce the borrower to repay the total outstanding within sixty days from the date of the notice, failing which steps would be taken under the provisions of the SARFAESI Act against the securities. The borrower as well as the petitioner failed to avail the opportunity granted in the notice, dated 21.10.2010 and did not repay the loan amount within the time stipulated, which resulted in a possession notice being issued under Sec. 13(12) of SARFAESI Act for taking over symbolic possession of the subject property owned by the petitioner herein.