The present writ petition has been filed for quashing the letter as contained in memo no. 835/Conf. Deoghar dated 28.11.2018 issued under the signature of the respondent no. 6–the Sub-Divisional Officer-cum-Sub Divisional Magistrate, Deoghar, whereby the petitioner has been asked to vacate the premises of Hotel Madhumala International within 15 days of receipt of the said letter. Further prayer has been made for issuance of direction upon the respondent-Central Bank of India to initiate immediate remedial measures to reduce the interest rates being charged towards the petitioner’s loan account right from inception of the debtor-creditor relationship, if the interest rate so charged is found to be arbitrary, excessive and violative of public policy.

2. The factual background of the case as stated in the writ petition is that the petitioner had availed loans from the respondent-Central Bank of India for an amount of Rs.600 lakhs and the rate of interest was fixed @ 17.5% which was sanctioned on 09.09.2011. While availing the loan facility, Madhumala Construction Private Limited being the guarantor mortgaged Hotel Madhumala International to the respondent-Bank. The petitioner immediately thereafter lodged its objection towards the exorbitant rate of interest vide letter dated 10.09.2011 and during the consideration of the said letter, the petitioner was further given a term loan of Rs. 200 lakhs vide sanction letter dated 03.01.2013 and the rate of interest was @ 15% per annum. The petitioner, however, failed to make re-payment of the loan in terms with the repayment schedule and its account became NPA and ultimately the Bank resorted to Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as “SARFAESAI Act, 2002”). Now, a letter has been issued by the respondent no. 6 for vacating the mortgaged property within 15 days. The petitioner approached the Deputy Collector, Deoghar and Sub-Divisional Officer, Deoghar by making representation dated 04.12.2018 highlighting the relevant aspects of the matter with a request not to take any coercive action in terms of the said letter, however, the same remained unresponded. Hence, the present writ petition.

3. The learned Senior Counsel for the petitioner submits that the primary reason for the loan accounts getting NPA is charging of excessive interest by the Bank. The petitioner had requested the Bank for reducing the interest rate only to 16.6% which is the rate being charged presently. The petitioner is not a wilful defaulter and it has been making regular payments towards its loan accounts even after declaration of its account as NPA by the Bank and currently it is paying Rs. 18 lakhs per month to the Bank as would be evident from the loan account statement. It is further submitted that the respondents have not complied the mandate of Section 14 of the SARFAESAI Act, 2002. Moreover, non-service of the notice upon the guarantor and mortgagor of the property sought to be vacated namely, the Madhumala Construction Private Limited is clearly in violation of the principles of natural justice. The respondent-Bank may be directed to disclose its Board approved policy regarding charging of excessive interest rates as mandated by the Master Direction-Reserve Bank of India (Interest Rate on Advances) Directions, 2016 issued by the Reserve Bank of India which is binding on the Bank in view of the Banking Regulation Act, 1949. It is also submitted that the respondent-Bank may be directed to initiate immediate remedial measures to reduce the interest rate being charged on the petitioner’s loan accounts right from inception of the debtor-creditor relationship, if the interest rate so charged is found to be arbitrary, excessive and violative of public policy. It is further submitted that under first and second proviso to Section 14(ix) of the SARFAESI Act, 2002, the District Magistrate has to pass suitable orders for the