PARSURAM MEHER Vs. UNION OF INDIA AND OTHERS

JUDGEMENT

(1.) The petitioner, being the proprietor of M/s. Patneswari Rice Mill situated at Jogimunda in the district of Bolangir, had availed a term loan of Rs. 60.00 lakhs, out of which the State Bank of India released Rs. 40.00 lakhs towards construction of building and installation of machineries etc. Subsequently, the petitioner intended to avail cash credit loan of Rs. 20.00 lakhs towards working capital for purchase of raw materials, which was sanctioned, but due to non-release thereof, the petitioner suffered. On account of nonpayment of term loan amount, the opposite party bank issued notice under Sec. 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ( "SARFAESI Act " for brevity). Though the petitioner filed objection under Sec. 13(3-A) of the SARFAESI Act, the bank did not pass any reasoned/speaking order and initiated proceeding under Sec. 13(4) of the said Act. At this point of time, the petitioner approached this Court by filing W.P.(C) No. 17378 of 2015, which was dismissed by a Division Bench of this Court vide order dated 30.11.2015, which reads as under:

(2.) Mr. M.K. Mallick, learned Senior Counsel for the petitioner states that the opposite party bank having held out a promise to release cash credit loan of Rs. 20.00 lakhs for the purpose of purchase of raw materials in the shape of working capital and the same having not been released, the bank has not kept its promise. Thereby, consequential action taken under Sections 13(2) and 13(4) of the SARFAESI Act cannot sustain.

(3.) Having heard learned Senior Counsel for the petitioner and upon going through the records, the matter is being disposed of at the admission stage without issuing notice to the opposite parties.