D.RAMANATHAN Vs. DISTRICT COLLECTOR

JUDGEMENT

(1.) This writ petition has been filed seeking a writ of Certiorarified Mandamus to call for the records relating to the impugned notice issued by the second respondent in Na.Ka.A1/6663/2018, dtd. 1/12/2018 and quash the same as illegal and consequently, direct the respondents not to evict the petitioner and his family members from the house property situated at Paramakudi Town, Old Ward No. 7, New Ward No.1, Present Ward No.1, Vaigai nagar, 2nd Main Road, T.S.Nos.6/3-35b, Ward B, Block 4, Old Survey No.110/C, Door No. 7/200, 7/200-13, Plot No.134.

(2.) According to the petitioner, he is a proprietor of Gowtham Stores, Paramakudi and he approached the fourth respondent bank for Over Draft facility and availed credit facility of Rs.10,00,000.00 (Rupees Ten Lakhs only) under the loan account OLCC A/c.5120 2001 0008 140 and he also mortgaged his house property as security in favour of the fourth respondent bank by way of executing the Memorandum of Deposit of title deeds on 17/2/2015. The petitioner was regular in paying the EMI to the fourth respondent bank, however, due to financial crisis, he could not repay the installments regularly. Thus, the respondents 3 and 4 classified his loan account as Non-Performing Asset and initiated proceedings under the SARFAESI Act and the third respondent issued a demand notice dtd. 10/11/2016 under Sec. 13(2) of the SARFAESI Act. Though the petitioner sought for six months time to settle the entire dues and also prayed for One Time Settlement, the same did not evoke any positive response.

(3.) It is the further case of the petitioner that the respondents 3 and 4, turning deaf-ears to the procedures contemplated under the SARFAESI Act, issued a re-tender cum auction sale notice dtd. 2/6/2017, in respect of the house property of the petitioner, informing that the petitioner has to pay a sum of Rs.9,87,218.00 (Rupees Nine Lakhs Eighty Seven Thousand Two Hundred and Eighteen only) and the last date for submitting the tenders was fixed on 28/6/2017 at 12.00 noon and the opening of the tenders was at 01.00 p.m., on that date. Thereafter, the third respondent issued a letter dtd. 28/6/2017 stating that the property was sold for a sum of Rs.43,00,000.00 (Rupees Forty Three Lakhs only) and 25% of the bid amount was paid and thus, requested to hand over the possession of the property in question. Hence, the petitioner filed S.A.No.264 of 2017 before the Debts Recovery Tribunal, Madurai, impugning the sale notice dtd. 2/6/2017 and also filed I.A.No.1331 of 2017 for stay of further proceedings of the impugned sale notice, however, the said application was dismissed on 28/7/2017.