M. LAXMI RADHA Vs. CANARA BANK AND ORS.

JUDGEMENT

(1.) This writ petition is filed to declare the action of the 1st respondent Bank in not accepting the payments towards instalments and not regularizing the loan account bearing Account No. 2727619000377 of the 2nd respondent with the 1st respondent Bank, as illegal and arbitrary. The 2nd respondent had borrowed a total sum of Rs. 12,00,000/ - from the 1st respondent Bank on 8.12.2008 and agreed to repay the loan amount in 114 equated instalments of Rs. 14,350/ -. In respect of the subject property, the 2nd respondent created equitable mortgage by deposit of title deeds on 10.12.2008. The 2nd respondent -borrower committed default in payment of loan amount and his loan account is declared as non -performing asset as per the R.B.I. Guidelines. Thereafter, 1st respondent Bank has initiated proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, 'the Act'). After issuing demand notice under Sec. 13(2) of the Act, possession notice under Sec. 13(4) of the Act was issued and constructive possession was taken on 27.6.2013.

(2.) The 1st respondent Bank also filed an application under Sec. 14 of the Act before the Chief Metropolitan Magistrate, Ranga Reddy District and the same was numbered as Crl. MP No. 693 of 2014, in which an Advocate Commissioner was appointed to take possession of the secured asset. Accordingly, notice was issued to the borrower.

(3.) When the Advocate Commissioner went to the subject flat, the 2nd respondent was not there and the petitioner, who was in fact found to be in possession of the subject flat, requested for sometime to vacate the premises. Thereafter this writ petition is filed.