D.SOODAMANI Vs. VIJAYA BANK

JUDGEMENT

(1.) The petitioner has filed the present writ petition, for a writ of mandamus, forbearing the respondent from proceeding against the property of the petitioner, measuring an extent of 944 sq.ft., bearing Old Door No.2/24, New Door No.94, Jayavinayagar Koil Street, Jaganathapuram, Chetpet, Chennai-600 031, without first recovering their dues by selling the mortgaged property of the principal borrower.

(2.) Brief facts leading to the filing of the Writ Petition are that, the husband of the petitioner, namely, P.Durairaj, is carrying on business in the name and style of G.K.Engineers. For the development of his business, he has mortgaged the property, measuring an extent of 3054 sq.ft. together with building thereon, measuring an extent of 3044 sq.ft. at Door No.42, Bajanai Koil Street, Mel Aynambakkam, Chennai and availed a cash credit facility for a sum of Rs.15,00,000/- as loan from the respondent Bank in the year 2007. For the loan availed by her husband, the petitioner herein stood as the personal guarantor without mortgaging any property or offer any security towards the loan.

(3.) When at the time of repaying the loan along with interest, there was a sudden loss in business and the project run by the husband of the petitioner was abruptly stopped due to some third party disputes and as such, there were some defaults in the payment of interest. In view of the default committed, the cash credit loan account was declared as NPA in the year 2009 and thereafter, the respondent Bank took possession of the property belonging to the husband of the petitioner on 16.09.2009 by issuing possession notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act [hereinafter referred to as 'SARFAESI Act'].