K.K. Sasidharan, J.

1. This Writ Petition at the instance of the borrower, challenges the Recovery proceedings initiated by invoking the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "SARFAESI Act") principally on the ground that the secured asset is an agricultural land and as such, the Bank not legally correct to invoke the provisions of SARFAESI Act.

The facts:

2. The Petitioner is a registered firm engaged in agricultural operations. The Petitioner made an Application before the Indian Bank, Coimbatore requesting grant of term loan for agricultural operations. The Petitioner offered their agricultural property as collateral security. The Bank sanctioned the loan characterising it as "Agricultural Loan". The Petitioner after obtaining the loan amount, engaged in various kinds of agricultural operations.

3. Since the Petitioner was not in a position to pay the entire loan amount within the time granted by the Bank, Application was given for One Time Settlement. However, the proposal was not considered by the Bank. Subsequently, the Bank initiated proceedings under Section 1