V.GNANASEKARAN Vs. AUTHORISED OFFICER

JUDGEMENT

(1.) The petitioner has filed the present writ petition, for a writ of certiorari, calling for the records of the fifth respondent relating to the order dated 27.02.2017 passed in R.A.(SA)No.176 of 2012 in setting aside the order dated 19.10.2011 passed by the Debt Recovery Tribunal-III, Chennai in S.A.No.242 of 2010.

(2.) Brief facts leading to the filing of the Writ Petition are that, the petitioner, namely, V.Gnanasekaran, is carrying on business in the name and style of M/s.Five Star Cell World, in which, he is the proprietor. He had availed credit facility of CCOL for a limit of Rs.7,50,000/- from the Southern Indian Bank, Arakkonam on 11.04.2008 for the purpose of his business. The repayment of the loan was defaulted and from 30.09.2009, the balance in the account was more than the limit of Rs.7,50,000/- continuously for more than 90 days and therefore, the account was classified as NPA on 31.12.2009.

(3.) A demand notice was issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act [hereinafter referred to as ' SARFAESI Act '] demanding a sum of Rs.7,96,835.09 and the petitioner did not send any reply on receipt of the said notice. He also did not make any payment as demanded by the Bank. Therefore, the Authorised Officer was constrained to take possession as the demand under Section 13(2) of the SARFAESI Act was not complied with, for which, possession notice was issued by the Authorised Officer on 06.08.2010 and thereby, symbolic possession of the property was taken.