B ARUN PARTNER M/S AARTHI BUILDERS AND AARTHI INVESTMENTS CHENNAI Vs. AUTHORIZED OFFICER/CHIEF MANAGER INDIAN BANK GUINDY BRANCH SIDCO BUILDING CHENNAI

JUDGEMENT

(1.) THE petitioner has filed this writ petition praying for an issuance of Writ of Certiorarified Mandamus in calling for the records on the file of the respondents, leading to the auction sale dated 18.07.2009 conducted by them in regard to the properties of the petitioners viz., 8 shops and 2 flats situated at Plot No.C-14, Door No.134, New No,4, 40th Street, Nanganallur, Chennai - 600 061 and one flat measuring 1450 sq.ft. Bearing Flat No,4-D, 4th Floor, Door No,20, New No,25, Thirumurthy Street, T. Nagar, Chennai - 600 017 and to quash the same and consequentially directing the respondents to accept the offer made by the petitioners in regard to the auction sale and execute the sale deed in favour of their nominees.

(2.) THE case of the petitioners is that they have approached the second respondent, Indian Band, Guindy Branch and obtain a credit facility in the year 1990 by way of over draft for a limit of Rs.50 lakhs and they were in the business of construction of flat and were regularly processing the said loan facility till 1997 and subsequently, due to fall in business and heavy financial constrains they could not service the loan regularly but continued to pay interest till 2001 regularly and the second respondent has filed O.A. No.1250 of 1998 against the petitioners and when they along with some of the creditors approached the second respondent and sought for one time settlement at Rs.85 lakhs the second respondent/Indian Bank had accepted the said OTS and a memo of compromise for Rs.85 lakhs was filed before the Debt Recovery Tribunal in O.A.No.1250 of 1998 in and by which the petitioners had to pay a sum of Rs.20 lakhs on or before 30.01.2001 and the balance to be paid with simple interest at 12% per annum from 01.04.2001 till 31.12.2001.

(3.) THE petitioners had paid more than Rs.90 lakhs to the respondents/bank though there was some brakes in the payment due to financial crunch. However, the petitioners made a offer of one time settlement of Rs. 155 lakhs in March 2009 and the same was accepted by the bank on 27.04.2009 and bank directed them to pay the said sum on or before 29.05.2009.