SURBHI KANKARIA Vs. UCO BANK

JUDGEMENT

(1.) This writ petition under Article 226 of the Constitution of India has been preferred by the petitioner assailing the impugned notice dtd. 18/12/2023 (Annex.3) issued by respondent Bank and the proceedings initiated pursuant to the notice impugned. The petitioner has also sought relief to direct the respondent Bank to reschedule the loan.

(2.) Briefly stated, the facts of the case are that the petitioner's mother Smt. Vidhya Bhandari, was the sole proprietor of M/s Kankaria Trading Company. The said proprietorship firm is indulged in the business of submersible motor pumps, cable etc. Earlier the said firm's proprietor was Sh. Sunil Bhandari, father of the present petitioner) and after his death, the business affairs were conducted by petitioner's mother Smt. Vidhya Bhandari. The firm M/s Kankaria Trading Company took cash-credit limit of Rs.19,00,000.00 from the respondent Bank, for which approval was issued by the respondent Bank vide letter dtd. 8/12/2020 (Annex.1). For availing the said cash-credit facility, the petitioner stood as a guarantor and she gave collateral security of her commercial shop ad-measuring 108 square feet situated at 7, Jalte Deep Gali, Outside Jalori Gate, Jodhpur. Later on, the said cash-credit limit was increased to Rs.31,00,000.00 in March-April 2022.

(3.) The said credit facility was insured by the firm through the respondent Bank and premium amount qua the insurance was paid on behalf of M/s Kankaria Trading Company. As per the averments made in the writ petition, the said insurance policy is in the custody of the respondent Bank and copy whereof was not provided to the firm. The said insurance policy was not even provided to the petitioner despite requests being made by the petitioner. The repayment of the credit facility was made regularly by petitioner's mother. Petitioner's mother Smt. Vidhya Bhandari expired on 21/9/2023. After death of Smt. Vidhya Bhandari, the business activities of the firm M/s Kankaria Trading Company were not done and thus the repayment could not be made on time.