STATE BANK OF INDIA, REP BY ITS CITY CASE OFFICER Vs. MADHAVI FOOD PRODUCTS, REPRESENTED BY ITS MANAGING PARTNERS, N THANGARAJ & B MADHAIYAN

JUDGEMENT

(1.) M/S.Madhavi Food Products, represented by its Managing Partners, Mr.N.Thangaraj & Mr.B.Madhaiyan, Dharmapuri District, was sanctioned loan to the tune of Rs.125.93 lakhs, but the amount disbursed was a sum of Rs.65 lakhs, by State Bank of India, Chennai, first respondent herein, for which, the petitioner company offered their valuable properties i.e.(i) Factory land and building in S.No.411/2, 4082, Perianahalli Village, Palacode Taluk, measuring to an extent of 1.92 acres; (ii) Land at S.No.408/1-A and 409/3A, Perianahalli Village, Palacode Taluk, measuring an extent of 1.42 acres; (iii) land at Poultry shed st S.No.410/3, Perianahalli, measuring an extent of 0.36 cents; and (iv) land and poultry shed at S.No.407/2 and 411/3, Perianahalli Village, Palacode Taluk, measuring an extent of 1.56 acres. According to borrower, lands in S.No.408/1-A and 409/3A, are agricultural lands.

(2.) According to the petitioner though a request was made to State Bank of India, Chennai, for disbursement of the entire amount, the same was not done. As the private borrowers insisted for payment with huge interest, the cost of machineries and their installation and due to the financial crisis caused, the writ petitioner could not repay the loan amount, within the time schedule.

(3.) Bank has issued a sale notice dated 26.12.2016, fixing the auction on 18.01.2017. In order to avoid the proposed auction of the petitioner's agricultural property, during the first week of January 2017, the writ petitioner approached the first respondent/State Bank of India, to settle the dues by way of one time settlement. Responding to the same, bank has sent a communication dated 09.01.2017, offering one time settlement.