Point of Law: Where there is a breach of contract, the party complaining of such breach may required to file a suit for specific performance of the contract, if contract is capable of being specifically performed.

JUDGMENT :

Heard learned advocate Mr. A.S. Panesar for the petitioners/applicants and learned advocate Mr. V.N. Sevak for the respondent.

Order in Special Civil Application :

1. Rule, returnable forthwith. Learned advocate Mr. Sevak waives service of notice of rule for the respondent.

2. Having regard to the controversy in narrow compass, with the consent of the learned advocates for the respective parties, the matter is taken up for hearing.

3. By this petition, under Articles 226 and 227 of the Constitution of India, the petitioners have prayed for the following reliefs:

“(A) To issue a writ of mandamus or any other appropriate writ, order or direction in the nature of mandamus or any other writ for directing the Respondent to implement the Restructuring Package already granted by the Respondent to the Petitioner No.1 vide Letter dated 30/03/2021 (Annexure-C) and to quash and set aside entire arbitrary and illegal measures initiated by the Respondent under the Securitisation Act.

(B) Pending admission, hearing and final disposal of this Petition be further pleased to direct the Respondent not to take any further action under the Securitisation Act and to maintain Status Quo in the matter against the Petitioners and the Properties in question.

(C) Be pleased to grant ex-parte ad-interim reliefs in terms of Para 19-B as stated supra.

(D) To grant any other and further appropriate and just relief(s) as may be deemed necessary & fit on the facts and circumstances of case

(E) The cost of this petition may be awarded.”

4. The brief facts which are necessary to resolve the controversy raised in this petition are as under:

4.1. The petitioner No.1 was having business operations and dealings with the respondent-Bank. The respondent-Bank sanctioned and granted financial assistance from time to time which was enhanced lastly on 25th July, 2019 and thereafter on 21st September, 2020. The petitioner No.1 is registered as Micro, Small and Medium Enterprise (‘MSME’) under the Micro, Small and Medium Enterprise Development Act, 2006 (for short ‘the MSME Act’).

4.2. It is the case of the petitioners that due to complete lock down during the Covid-19 pandemic in the year 2020, the business of the petitioner No.1 with regard to the feed supplement business for poultry etc. suffered adversely. The petitioner No.1 therefore approached the respondent-Bank for restructuring of the financial assistance as per the directives dated 6th August, 2020 for restructuring of financial assistance to MSME sector issued by the Reserved Bank of India.

4.3. The respondent-Bank after considering the application made by the petitioner No.1 sanctioned the restructuring proposal on 30th March, 2021. It appears that though the sanctioned letter was issued on 30th March, 2021, as one of the guarantors could not execute the Bank guaranty deed on 31st March, 2021, the respondent-Bank unilaterally cancelled the sanctioned letter dated 30th March, 2021 and thereafter declared the account of the petitioner No.1 in the category of Nonperforming Asset (for short ‘NPA’).

4.4. The respondent-Bank thereafter issued a notice dated 16th April, 2021 under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 Act (for short ‘the SARFAESI Act’).

4.5. It is the case of the petitioners that though the respondent-Bank issued the sanctioned letter for restructuring on 30th March, 2021 as per the notice issued under Section 13(2) of the SARFAESI Act, the account was classified as NPA account as on 27th February, 2021.

4.6. The petitioners by Email dated 24th May, 2021 during the second wave of Covid-19 requested the respondent-Bank to reconsider the declaration of the account of the petitioners as NAP account.

4.7. It appears that various letters were sent by the petitioners to the respondent-Bank to reconsider declaration of NPA s