SMT. P.JAGADESHWARI Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) This Writ Petition is filed seeking a Writ of Mandamus declaring the action of the respondents in seizing the petitioner's Honda City car bearing Regn.No.TS-11-EU-0414 on 2/3/2022 demanding the petitioner to pay the total loan amount in lump sum, without any prior notice and without following the due procedure contemplated under the statute, as illegal and arbitrary.

(2.) It is submitted that the petitioner purchased the vehicle Honda City car and had approached respondent No.1 for sanction of the vehicle loan. It is submitted by the learned counsel for the petitioner, Ms. P.Vijayalakshmi, that the petitioner has been regularly paying Equated Monthly Instalments (EMIs) and the term of the loan period is seven (7) years. She submits that due to pandemic situation coupled with unavoidable circumstances, the petitioner could not pay the EMIs from October, 2021 onwards and had approached the respondent bank for granting some time to pay the instalments. She submits that the officials of the 1st respondent bank assured the petitioner that no coercive steps would be taken and some time would be granted and however the petitioner failed to make payments for a period of five (5) months and the respondents have issued notice dt.13/3/2022 informing the petitioner about the e-auction of the vehicle to be held on 23/3/2022, which was published in newspapers on 11/3/2022. According to the petitioner, no notice has been issued to the petitioner prior to the said notice dt.13/3/2022 and she seeks time from this Court to make the payment and regularise the loan account and meanwhile she is seeking stay of the e- auction of the vehicle.

(3.) Learned Standing Counsel for the respondent Bank, M/s. Pearl Law Associates representing respondents 1 and 2 submits that since the petitioner has failed to make payment of EMIs as required under the loan agreement, the respondents already issued notice to the petitioner and ultimately since the loan account has become an NPA, the respondents had to resort to e-auction the vehicle and accordingly hence issued notice dt.13/3/2022.