Admittedly, the Applicant is the proprietor of M/s. Arun Polymers, who has availed credit facilities in the year 2013 for a sum of Rs. 12,00,00,000/(Rupees Twelve Crore only) from the 1st Respondent Bank to meet their business working capital requirements. Initially, the Applicant was regular in repayment of loan amount, however, due to loss in the business and COVID-19 Pandemic situation, he could not repay the loan amount as promised. As per the Reply Statement given by the 1st Respondent Bank, the total loan outstanding as on 31.03.2023 is Rs. 7,82,95,202.72p. (Rupees Seven Crore Eighty Two Lakhs Ninety Five Thousand Two Hundred and Two and paise Seventy Two only). Hence, the 1st Respondent Bank initiated SARFAESI proceedings against the loan account of the Applicant. There is no denial by the Applicant that he had bifurcated the funds and he had defaulted and failed to operate the Overdraft facility as agreed and promised. It is also not denied by the Applicant that he had failed to submit the annual stock statements to the Respondent Bank and that there was deficient in the quantum of available stocks. Despite sufficient opportunity, borrower failed to regularize the cash credit and term loan account, hence the 1st Respondent Bank with no other alternative has classified the loan account as Non Performing Asset on 30.06.2019. Thereafter, the Demand Notice u/s 13(2) was issued on 04.09.2019, but, they had refused to accept the notice. Hence, the Demand Notice was published in English and Tamil daily newspaper on 16.10.2019, which is evident from perusal of type set of papers at page no. 10 & 11 produced by the 1st Respondent Bank. The Applicant has stated that after receiving the Demand Notice they had given several requests to the 1st Respondent Bank, but he has not produced any chit of paper in support of his contention. Further, the 1st Respondent Bank has submitted that since the Applicant had not raised any objection on the Demand Notice dated 04.09.2019, they issued statutory 13(4) Possession Notice dated 05.02.2020 and the same was published in two newspapers on 08.02.2020, which is also attached with the type set of papers. The said notice is also delivered upon the borrowers and guarantors and it is also affixed in the property. Further, the 1st Respondent Bank had issued 12 Nos. of Sale Notices & had sold the properties in item Nos. 1 & 7 vide its 9th Sale Notice dated 03.11.2021 & sale held on 22.11.2021 to the successful bidder namely M/s. Kumars Polybags India Private Limited, Tiruchirapalli and they had deposited the entire sale consideration of Rs. 1,95,10,000/and the Sale Certificate was issued on 21.02.2022 and the same is registered with the concerned SRO on 24.02.2022 & Item Nos. 2 & 3 vide its 10th Sale Notice dated 25.11.2021 & sale held on 30.12.2021 to the successful bidder namely Chandrasekar & J. Leo marshal.
