THANDI FLORA (P) LTD Vs. AUTHORIZED OFFICER

JUDGEMENT

(1.) The petitioner is a Private Limited Company duly incorporated under the Companies Act 1956 and represented by its Director, namely, N.Rajan Venkatesh.

(2.) The petitioner Company is carrying on the business of Horticulture and Floriculture. In order to develop its business, the petitioner Company approached the 2nd respondent Bank requesting them to provide credit facilities. The 2nd respondent Bank, by letter dated 05.01.2008, sanctioned a sum of Rs.170 lakhs towards Agricultural Term Loan, for which, agricultural land to the extent of 9.29 acres belonging to the Directors of the Petitioner Company were offered as collateral security. The petitioner, by utilizing the credit facilities, completed the entire green house structure and started plantations of carnation cut flowers at their Thandikudi Farm. The respondent bank further sanctioned a sum of Rs.50 lakhs on 19.08.2011 towards agricultural term loan. But, the petitioner availed only a sum of Rs.37.15 lakhs.

(3.) According to the petitioner, due to crisis in the field of floriculture industry, the company was unable to repay the loan amount, however, the company has been paying the interest amount to the Bank. Hence, the petitioner requested the Bank to restructure their loan amount. However, the 2nd respondent without considering the request of the petitioner company for restructuring the loan amount, wrongly classified the loan account of the petitioner company as Non-Performing Asset on 31.03.2018 and initiated recovery proceedings under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short SARFAESI Act)