D. KRISHNAN Vs. BRANCH MANAGER, FEDERAL BANK LTD.

JUDGEMENT

(1.) Challenge in this writ petition, is to the notice, dtd. 20/10/2014, issued under Sec. 13(2) of the SARFAESI Act, 2002, by issuance of a writ of Certiorarified Mandamus, to quash the same and consequently, sought for a direction to the Federal Bank, to disburse the petitioners, the balance loan amount of Rs.30,56,100.00, as per the Term Loan Agreement, dtd. 30/1/2014.

(2.) As the principal borrower, the 1st petitioner has availed the term loan of Rs.50,00,000.00 on 30/1/2014, from Federal Bank Ltd., for the purpose of repair and renovation of building. Petitioners 2 and 3, being son and wife, are the co-borrowers. Property has been mortgaged. First installment fell due on 30/5/2014 and that the petitioners were supposed to pay the monthly installment of Rs.1,00,074.03. After satisfaction of the work carried on, as per the quotations submitted by the 1st petitioner, the Bank had initially released a sum of Rs.11,51,900.00, on 8/2/2014 and also released a sum of Rs.6,92,000.00 on 7/2/2014, for the purpose of purchasing the building materials and altogether, disbursed a total sum of Rs.19,43,900.00.

(3.) The petitioners have further contended that the said amount was utilised for renovation of building and purchase of building materials. The petitioner has requested to disburse the remaining loan amount of Rs.30,56,100.00-. However, the Bank has refused to disburse the same, in time and therefore, the entire renovation and construction works, could not be continued.