ENSQUARE ENGINEERINGS INDIA (P) LTD. Vs. AUTHORISED OFFICER

JUDGEMENT

(1.) Petitioner has availed business loan from Union Bank of India, Chennai, for Rs.10,00,000/-. He could not pay the installments. Bank issued a notice dated 06.01.2017 under Section 13(2) of the SARFAESI Act, 2002 demanding a sum of Rs.9,38,229/- together with contractual rate of interest from 01.10.2016 with monthly rests as per the terms and conditions of the loan documents executed by borrower, and to discharge the liabilities, within 60 days from the date of receipt of said notice.

(2.) Petitioner has contended that after receipt of the notice, he paid a sum of Rs.2,03,000/- on 06.03.2017, and sent a reply dated 10.03.2017 seeking further time till April 2017, to clear the balance amount. He also sent an e-mail dated 11.03.2017. After the receipt of the reply stated supra, the bank has not proceeded further. According to the petitioner, as on 24.07.2017, he was liable to pay Rs.7,96,447/- only. So far, he has made payment of Rs.8,26,831.68, detailed as hereunder: <TAB> <FRM>JUDGEMENT_135_LAWS(MAD)8_2017.html</FRM> </TAB>

(3.) According to the petitioner, he has paid more than 80% of the outstanding amount and in such circumstances, he is eligible to the benefit of Section 31(j) of the SARFAESI Act, 2002. He is eligible for refund of Rs.30,287.66. He further submitted that though a sum of Rs.8,26,831.68, has been deposited, bank has neither issued a "no due certificate" nor returned the documents.