MRS.R.PADMA Vs. INDIAN OVERSEAS BANK

JUDGEMENT

(1.) M/s.VR Packers had borrowed a sum of Rs.485 Lakhs for starting biscuit manufacture facility. Subsequently, the said amount has been increased and renewed as Rs.820 Lakhs. Indian Overseas Bank has also been approached for financing Hotel Project at Courtallam and sanctioned a term loan of Rs.550 Lakhs. Project is stated to be half way. Petitioner has sought for a bank guarantee of Rs.1.5 crores in connection with biscuit factory in favour of ITC. Petitioner is stated to have made some payment and thereafter, defaulted.

(2.) Material on record discloses that when the petitioner filed W.P.No.14873 of 2017, to quash the auction notice dated 26.05.2017, a Hon'ble Division Bench of this Court granted conditional stay of auction of the property, subject to payment of Rs.1 Crore towards the loan amount, within a week. Petitioner has failed to comply with the said order. Bank has sold the property for Rs.1.35 Crores. However, having regard to the grievances expressed by the petitioner, a Hon'ble Division Bench of this Court at paragraph No.4 in W.P.No.14873 of 2017 dated 29.06.2017 ordered as hereunder.

(3.) Thereafter, petitioner has sent a proposal dated 11.07.2017 to the bank as hereunder Tuesday, 11 July 2017,