DUKE CEMENT AND BUILDING MATERIALS, RANCHI, THROUGH ONE OF ITS PARTNER NAND KISHORE SAHU Vs. BANK OF INDIA, RANCHI, THROUGH ITS DEPUTY GENERAL MANAGER

JUDGEMENT

(1.) Mr. Rajesh Kumar, learned counsel for the petitioner, on the last date of hearing i.e. 15.1.2013, had sought adjournment stating that he would like to seek instruction about the mode of repayment of the outstanding amount. On his request, case was adjourned for today. Mr. Rajesh Kumar, learned counsel for the petitioner, submits that he has been instructed by the petitioner to make statement that petitioner is not ready and willing to repay the outstanding amount at this stage, therefore, writ petition be heard on merit.

(2.) In short, facts of the present case are:--

(3.) Undisputedly on 9.2.2004, petitioner-firm was sanctioned a Term Loan of Rs. 18.63 lacs and a Cash Credit limit of Rs. 30 lacs. There were default in repayment of loan therefore, account was restructured on 10.3.2007; on restructuring, interest on Term Loan was capitalised and the limit was raised to Rs. 23.92 lacs, however, the Cash Credit limit was kept intact to Rs. 30 lacs; again petitioner failed to repay the loan and account was declared NPA on 31.3.2008, however, operation in CC Account was allowed withholding back 20% of cash credit limit; since there were regular default in the matter of repayment of the loan amount, fresh restructuring was done on 30.9.2009 and overdue interest on Cash Credit limit was converted into FITL with limit of Rs. 13.21 lacs and existing Term Loan and Cash Credit limit was reviewed at Rs. 23.91 lacs and Rs. 30 lacs respectively. Despite restructuring being done time to time in favour of the petitioner, petitioner failed to discharge his liabilities and has committed again default in repayment of the loan amount; ultimately, on 31.8.2012, the account was declared as NPA; Notice dated 15.9.2012 (Annexure-1 to the writ petition) under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, was issued; Petitioner has filed objections under Section 13(3-A) of the Act on 25.9.2012; Notice under Section 13(4) of the Act was issued on 16.11.2012; Feeling aggrieved, petitioner has preferred present writ petition challenging Notice under Section 13(4) of the Act.