CHUNDRI GHAR TEXTILES Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) This writ petition under Article 226 of the Constitution of India has been preferred claiming the following reliefs:-

(2.) The matter pertains to non-payment of the interest towards the loan borrowed by respondent No. 3-borrower, and the present petitioner stood as a guarantor against such loan.

(3.) The sheet anchor of the petitioner's case is that respondent No. 3 took overdraft facility from respondent No. 2- Bank in the year 2015 amounting to Rs.3.00 crores against the property of the present petitioner as guarantee against such overdraft facility/loan. Thereafter, respondent No. 2 issued a notice under Sec. 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short, 'the SARFAESI Act'), informing the present petitioner about the defaults committed by respondent No. 3 in payment of interest towards the overdraft facility/loan so provided, and thus, the said loan has been classified as Non-performing Assets (NPA). Accordingly, the proceedings under the SARFAESI Act were initiated against the present petitioner/guarantor.