AMAR BAL Vs. CHIEF MANAGER-CUM-AUTHORIZED OFFICER

JUDGEMENT

(1.) THE petitioner in this writ application challenges the impugned letter No. SME/2014 -15/965 dated 13.2.2015 issued by the Chief Manager -Cum -Authorized Officer, State Bank of India, Bhadrak Branch, Bhadrak (hereafter 'the opp. Party') in exercise of the power under section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereafter in short 'SARFAESI Act, 2002') and taking over physical possession of secured assets mortgaged to Bank by the father of the petitioner namely Kapil Charan Bal and guarantor M/s. Mahavir Stone Crusher situated at Mouza -Apartibindha, Tahasil/P.S./Dist -Bhadrak, Khata No. 791/1436, Plot No. 309/3218, Area Ac 0.080 dec.

(2.) THE case of the petitioner is that he was the Proprietor of a Crusher Unit in the name and style of M/S. Mahavir Stone Crusher situated in the district of Bhadrak which is running since 2008. The petitioner applied for both Term Loan and Cash Credit in the State Bank of India, Bhadrak Branch. The bank sanctioned a term loan of Rs. 45,00,000/ - and Cash Credit of Rs. 10,00,000/ - in favour of the petitioner. It is the further case of the petitioner that in the year 2012, an enhanced Cash Credit worth of Rs. 15,00,000/ - was sanctioned in favour of the petitioner so also housing loan of Rs. 17,00,000/ -. The petitioner is stated to have mortgaged the landed properties standing in the name of his father and also that of him in lieu of the loan sanctioned from the bank. It is the further case of the petitioner that though he was regularly repaying the installments of the loan amount along with interest till 31.3.2012 but due to downfall in the business in the crusher unit and ill health of his father which needed major surgical operation, the petitioner could not pay the further installments. It is the further case of the petitioner that the bank/opposite party issued demand notice on dated 25.3.2013 under section 13 (2) of the SARFAESI Act, 2002 wherein the outstanding liabilities of the petitioner to the bank was mentioned as Rs. 93,46,789/ -. It is the further case of the petitioner that after receipt of the demand notice dated 25.3.2013, he sent a letter on 25.4.2013 to the opposite party to intimate him regarding the overdue i.e., the irregular amount till that date and to allow him to pay the same in suitable installments. It is the case of the petitioner that in spite of such communication by the petitioner dated 25.4.2013, the opposite party did not pay any heed to his request and came up with a possession notice under section 13(4) of the SARFAESI Act, 2002 and letter of request for vacation/peaceful delivery of possession of the secured assets on dated 1.8.2013.

(3.) SECTION 13 of SARFAESI Act, 2002 which comes in Chapter -III under the heading of Enforcement of Security Interest deals with in detail as to how any security interest created in favour of any secured creditor has to be enforced. Section 13(4) of SARFAESI Act, 2002 is quoted herein below: - -