R.ANANDABALAJI Vs. TAMIL NADU MERCANTILE BANK LIMITED

JUDGEMENT

(1.) By consent, the writ petition is taken up for final disposal. Mr.V.Chandrasekaran, learned counsel accepts notice on behalf of the 1st respondent and Mr.Elayarajkumar, learned counsel accepts notice on behalf of the 3rd respondent.

(2.) The petitioner is the mortgagor / guarantor in respect of the loan availed by M/s.Anadabalaji Ginning Factory, a Proprietory Concern and in lieu of the default committed in servicing the Debts/loan, the 1st respondent / Bank initiated proceedings by issuing a Notice dated 27.09.2017 under Section 13[2] of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [in short ''SARFAESI Act''], and demanded a sum of Rs.1,60,05,920/- as on 31.08.2017 for Cash Credit Loan Account with future interest @ 17.25% per annum or BRR with monthly rests on the aforesaid amount together with the incidental expenses and it was followed by the Possession Notice dated 19.04.2018. The petitioner, who is the son of the Principal Borrower, viz., Mr.G.Manickam, and also a mortgagor/guarantor, aggrieved by the Possession Notice dated 19.04.2018, filed SA.No.216 of 2018 on the file of the Debts Recovery Tribunal, at Coimbatore.

(3.) In the interregnum, the petitioner also moved the 1st respondent / Bank for One Time Settlement and vide communication dated 07.07.2018, the 1st respondent / Bank had informed the petitioner that the balance outstanding amount as on 30.06.2019 was Rs.1,86,26,847/- and therefore, advised him to remit the same with cost immediately, failing which SARFAESI proceedings already initiated, would continue. The Auction Sale Notice fixing the date of auction on 28.09.2018 was issued by the 1st respondent and challenging the same, the petitioner filed SA.No.388/2018 on the file of the DRT at Coimbatore and the 1st respondent/Bank also issued the Sale Notice for sale of immovable property through E-Auction and pending disposal of the same, also filed applications for stay. It appears that in the interregnum, the auction sale was conducted and it was knocked down in favour of one Mr.Sasi Kumar, the 3rd respondent herein and a Sale Certificate was also issued in his favour on 12.06.2019 which was duly registered before the Sub Registrar, Pollachi, bearing Document No.5254/2019.