The availability of statutory remedies for objections and appeals under Section 17 of the Act, 2002.

Satish K. Agnihotri, J.

Since common facts and question of law are involved in this batch of petition viz. W.P. (C) No. 3112, 3110, 3113, 3114, 3115, 3120, 3121, 3122, 3123 of 2011, thus, they are being disposed of by this common order.

2. The petitioners seek relief to the effect that the "Income Recognition & Asset Classification Guidelines" (for short 'the guidelines') framed by the Reserve Bank of India (for short 'the RBI'), be quashed and set aside as the same is contrary to the provisions of Section 2(o) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the Act') and further, to direct the Reserve Bank of India to re-frame and lay down the guidelines in conformity with the said Act. Secondly, classification of the account of the petitioner No. 1 as non-performing asset (for short, the NPA'), be held as illegal. In the alternative, the petitioner has sought that the account of the petitioner as non-performing asset by the respondent No. 2, be declared as illegal and contrary to the existing guidelines, framed by the RBI. The petitioner further seeks to hold that all the decisions taken pursuant to the notice u/s 13(2) of the Act, be quashed and the ground that no decision has been taken within the prescribed time under the provisions of Section 13(3-A) of the Act. It is further prayed that the respondent No. 1 be directed to decide the objections raised by the petitioner by giving reasons.

3. Indisputably, the petitioner No. 1/Company availed the credit facilities under the Consortium Financing & Multi Banking Facilities from the respondent No. 2/Bank along with 12 other banks viz. Bank of India, Oriental Bank of Commerce, Indian Overseas Bank, Bank of Maharashtra, Punjab National Bank, Central Bank of India. Union Bank of India, United Bank of India, Canara Bank, Dena Bank and State Bank of Travancore and UCO Bank. It is further averred by the petitioners that the petitioner had availed credit facilities to the tune of Rs. 583,19,00,000/-from in all 13 banks. Due to financial crunch and non-availability of raw materials, the commercial production could not commence. However, the instalments and interest were paid to the respondent-Banks till the financial year 2007-08, in some cases and in some cases, upto the year 2008-2009.

4. It is further averred that without any notice, the account of the petitioner No. 1/Company was declared as non-performing assets based on the guidelines issued by the RBI.

5. Learned counsel appearing for the petitioners submit that the RBI guidelines, in so far as they provide for criteria for classification of NPA, which are purely based on default for period of 90 days, cannot be said to be in conformity with the true intent, meaning and purpose of provisions of Section 2(o) of the Act. There is no dispute that no payment of installment was made for a period of 90 days. Thereafter, the account of the petitioner No. I/Company was classified as NPA. The provisions of the Act does not define the terms, sub-standard, doubtful and loss asset as used in Section 2(o) of the Act, however, it is the guidelines, issued by the RBI, which defines the aforesaid terms. It is further averred that the RBI guidelines cannot be applied mechanically without subjective decision. Indisputably, in all cases, a demand notice u/s 13(2) of the Act, was issued. The petitioners submitted detailed representation/objection. The respondent Banks, rejected the representation/objection directing the petitioner to pay the entire outstanding amount due, forthwith.

6. Learned counsel appearing for the respective respondent/Banks submit that the issue with regard to RBI guidelines has already came into consideration before the Hon'ble Supreme Court in ICICI Bank Limited Vs. Official Liquidator of APS Star Industries Ltd. and Others, (2010) 10 SCC 1 in which the Supreme Court has not found any of the guidelines to be contrary to the provisions of the Act. It