OMEGA CABLES LIMITED, Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) W.P.Nos.5275 and 5276 of 2018 are filed against the order passed by DRAT, Chennai, in M.A.Nos.151 and 152 of 2017 dated 14.12.2017.

(2.) is filed to quash the portion of the impugned order passed in dated 14.12.2017 by DRAT, Chennai, in directing the first respondent bank to return the title deeds belonging to the petitioner herein.

(3.) The brief facts of the case as submitted by the learned counsel for the petitioner in W.P.Nos.5275 and 5276 of 2018 is as follows:- The petitioner, namely, M/s.Omega Cables Limited, which is a Public Limited Company, had requested the first respondent bank for a term loan of Rs.20 crores to meet out the cost of preliminary works for development of its property at Ambattur Industrial Estate. Based on the said request, the first respondent bank, through its Industrial Finance Branch, sanctioned one-time cash credit of Rs.15 Crores by their letter dated 24.01.2013. The securities offered by the petitioner company were movable and immovable assets, apart from the land admeasuring 16.31 acres situated at Ambattur Industrial Estate. The petitioner company had also executed loan agreements, apart from guarantee agreement. The first respondent bank, by letter dated 01.02.2016 and 17.02.2016, asked the petitioner company to settle the one-time cash credit facility immediately, and further informed that if the amount is not settled within 15 days from the date of the letter, they would proceed under the SARFAESI Act against the petitioner company. In order to settle the debts due to the first respondent bank, the petitioner had entered into a Memorandum of Understanding with one company, namely, M/s.ETA Star Infopark to jointly develop the land, to which, the said M/s.ETA Star Infopark agreed to pay the dues to the first respondent bank and thereby, clear the security.