RADHA GARMENTS Vs. CHIEF MANAGER, PUNJAB NATIONAL BANK

JUDGEMENT

(1.) Petitioner No.1, a Proprietorship concern of Sri Ajay Behera is the principal loanee and petitioner No.2-Smt. Sanjukta Das @ Pal is the guarantor of a Cash Credit Facility availed on 24/12/2011 for a sum of Rs.14.00 Lakhs from Punjab National Bank, Buxi Bazar Branch, Cuttack. The loan was secured by creating an equitable mortgage of the immovable property owned by petitioner No.2.

(2.) Due to non-servicing of the account, it was classified as NPA on 10/2/2016 leading to issuance of demand notices dtd. 29/2/2016/11/3/2016 under Sec. 13 (2) of the SARFAESI Act, 2002 (for short "the Act, 2002") to the principal loanee/petitioner No.1 and the guarantor petitioner No.2 recalling the outstanding liability of Rs.20,56,409.00 due as on 29/2/2016 together with further interest, costs, expenses etc.

(3.) The prayer in the present writ petition is for quashing the aforesaid notices issued under Sec. 13(2) of the Act, 2002 with a further direction to the Bank not to put the mortgaged property to sale.