KAMAL Vs. AUTHORISED OFFICER, CENTRAL BANK OF INDIA

JUDGEMENT

(1.) M/S.Krishna Constructions, represented by its Proprietor Mr.S.Mani, availed loan for Rs.7 Crores. (1) Mr.Mani, (2) Mrs.S.Krishnaveni, wife of Mr.Mani, and (3) Mrs. Malliga, extended their personal guarantee. Mr.S.Krishnaveni and Mr.Mani offered properties as a collateral securities to the credit facility availed. They also created mortgage over the property. Borrower and guarantors defaulted in making payment. Hence Bank has issued notice under Section 13(2) of the SARFAESI Act, 2002, demanding a sum of Rs.5,93,88,774/- as on 04.01.2016, to be paid within sixty days, failing which, bank would be constrained to take action under Section 13(4) of the SARFAESI Act, 2002. Thereafter, bank has issued notice dated 15.03.2016, under Section 13(4) of the SARFAESI Act, 2002. Sale notice dated 21.08.2017 did not fructify in sale. There was correspondence between the bank and the petitioner. On 07.05.2018, bank has issued a fresh sale notice under Rule 8 of the Security Interest (Enforcement) Rules, 2002, in which the amount due and payable to the bank, as on 14.12.2017 was Rs.4,50,57,371.41p. Bank has fixed the upset price as Rs.81 Lakhs.

(2.) Being aggrieved, Mr.Kamal, S/o. Mani, filed S.A.No.59 of 2018, before the Debts Recovery Tribunal-I, Chennai, to set aside the auction dated 29.05.2018, pertaining to property bearing Plot No.84, Old Door No.4, New Door No.7, 3rd Street, Ashok Nagar, Chennai-81. Pending disposal of S.A.No.59 of 2018, petitioner has sought for an order of interim injunction restraining the bank from taking any further action on the basis of the alleged sale pertaining to the abovesaid secured asset.

(3.) Among other grounds raised in the supporting affidavit to I.A.No.407 of 2018, in S.A.No.59 of 2018 on the file of Debts Recovery Tribunal-I, Chennai, petitioner has contended as follows: