SREE CHANDRIKA FOODS Vs. ANDHRA BANK, TANUKU

JUDGEMENT

(1.) The petitioners herein have availed certain financial assistance from the 1st respondent Andhra Bank. It appears, they have carried on business, but ended up in not repaying the money to the bank. It also appears, the last of the payments made by the petitioners was nearly four years back on 08.03.2012 when they paid Rs.6 lacs to the credit of the loan account. For the default committed in repaying the debt, the loan account has been declared as a non -performing asset by the bank and hence, it has started initiating securitization measures as provided for under Section 13 of the Securitization and Reconstruction of Financial Assets and Security Interest Act, 2002 (for short, the Act). It is questioning these measures, the present Writ Petition is filed.

(2.) Heard learned counsel for the petitioners and Ms. Dyumani, learned Standing Counsel for the respondent bank.

(3.) No meaningful explanation has been forthcoming from the petitioners as to the reasons why they have committed default in liquidating the liability, except taking a stock ground that due to power -cuts, cyclones and unprecedented rains, agricultural operations in the State have been badly affected with a spill over effect on the rice mill business, which the petitioners carried on.