( 1 ) HEARD the learned advocates. RULE. Learned Advocates Mr. Gandhi and mr. Mengdey waive service of rule on behalf of the concerned respondent. With the consent of the learned advocates, petition is taken up for final hearing.

( 2 ) THE petitioners before this Court are a company incorporated under the Companies Act, 1956 and one another (hereinafter referred to as "the Company"), the borrowers in default. The respondent No. 1 is the punjab and Sind Bank Limited (hereinafter referred to as. "the Bank" ). The Bank had extended financial assistance to the Company. The Company challenges the action of the Bank in initiating the recovery proceeding under the Securitization and Reconstruction of Financial Assets and enforcement of Security Interest Act. 2002 (hereinafter referred to as, "the Act of 2002") and the order of the District Magistrate, vadodara made on 4th January. 2005 under Section 14 of the Act of 2002.

( 3 ) MRS. Mehta has submitted that the action of the Bank in invoking the provisions contained in the Act of 2002 is illegal, made without the authority of law. She has submitted that the Company s account has not been declared to be the non-performing asset. The Bank,

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