ORDER :

1. The petitioners have filed the present writ petition for a writ of mandamus directing the respondents to consider the explanation of the petitioners dated 10.7.2019 Annexure-AD and 24.7.2019 Annexure-AF strictly in accordance with law and in terms of the law laid down by the Apex Court in the case of Keshavlal Khemchand and Sons Private Limited and Others vs. Union of India, 2015 (4) SCC 770 para-54 especially to classify their account under which category it falls as NPA ; declare that the proceedings under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, hereinafter referred to as 'the SARFAEASI Act') i.e.., Demand Notice dated 13.5.2019 as per Annexure-AC is not applicable since their account never became NPA, consequently SARFAESI Act, 2002 is not applicable; issue a writ of certiorari to quash the notice dated 13.5.2019 issued under Section 13(2) of the SARFEASI Act, 2002 Annexure-AC and also the rejection of their application vide notice dated 22.7.2019 Annexure-AG issued under Order 13(4) of the SARFEASI Act as illegal, void and in violation of the principles of natural justice; direct the respondents not to take any steps in pursuance of notice of possession dated 22.7.2019 in terms of Section 13(4) of the SARFEASI Act, Annexure-AG; and issue a writ of mandamus restraining the respondents-Banks from assessing the moveable assets of M/s. Singhi Build Tech Pvt. Ltd. i.e. the Tenant of petitioner No. 2; declare that their account must be classified as NPA under Section 2(1)(o) of the SARFEASI Act, only on such classification made, Section 13(2) of the SARFEASI Act cannot be invoked by respondent No. 1; declare that notice dated 22.7.2019 issued under Section 13(4), Annexure-AG is premature and void and hence, the same is liable to be quashed.

(I) FACTS OF THE CASE

2. It is the case of the petitioners that petitioner No. 1 - M/s Steel Hyper Mart India Private Limited is a Private Limited Company incorporated under the Companies Act, 1956, petitioner No. 2 is a major shareholder along with petitioner No. 3 in a company called M/s. Singhi Build Tech Private Limited. M/s Steel Hyper Mart Company Limited - petitioner No. 1 has got its go down at Sy.No. 184/1, Jigani Main Road, Khaneshumari Jigani, No. 537/1 to 6 Khaneshumari Jigani, Bengaluru-105 and Sy.No. 27/5B and 6B-1, Anumepalli Village, Zuzuvadi Panchayat, Hosur (Tamil Nadu). Both the companies belong to petitioner Nos. 2 and 3 and also some shares in the name of other relatives and friends.

3. It is further case of the petitioners' that they were carrying on the business of domestic purchase and sale of Steel and Iron Products and registered under the Central Goods and Services Tax Act of 2018 and paying tax by filing the GST monthly returns as prescribed form through online and there is no discrepancy pointed out by any of the customers or from the persons from whom the supply have been obtained and they have not violated the Act and Rules framed there under; It is the further case of the petitioners that petitioner No. 1 had browed a sum of Rs. 137.50 Crores under consortium funding from the Indian Bank as a leading banker and Rs.24.50 Crores from the Bank of Baroda (erstwhile Vijaya Bank) with pari-passu agreement as per the sanction letter dated 20.12.2018 issued by the Indian Bank and Vijaya Bank. When the said loan was sanctioned on 27.9.2017, they Hypothecated the stocks and books and debts of the company for a value of Rs. 170.62 Crores as on 31.3.2017 both primary and collateral. The petitioners submit that along with the Indian Bank, Vijaya Bank had also sanctioned a sum of Rs.24.50 Crores based on pari-passu agreement in which Mr. Mahendra KumarSinghi and M/s. Suman Singhi have stood as personal guarantors. However, the loan has been sanctioned as per sanction memo dated 3.2.2018 to M/s Steel Hyper Mart India (Pvt.) Ltd. By the Vijaya Bank and the proceedings under the