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BHARGAV D. KARIA
Abaj Foods Private Limited – Appellant
Versus
Authorized Officer, Punjab National Bank – Respondent
ORDER :
1. Learned advocate Mr. V.N. Sevak has prayed that he may be permitted to file appearance during the course of the day. The same is granted.
2. Learned advocate Mr. Aditya A. Gupta has submitted the paper book pursuant to the order dated 16.02.2023, the same is ordered to be taken on record.
3. Heard learned advocate Mr. Aditya A. Gupta for the petitioners and learned advocate Mr. V.N. Sevak for the respondent no. 1.
4. This petition is preferred by the borrower and guarantor who have availed financial assistance from the respondent Bank. It is the case of the petitioners that the account of the borrower became non performing assets (NPA) account in the year 2016. The respondent Bank initiated proceedings under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ‘SARFAESI Act’) by issuing notice dated 30.04.2018 under Section 13(2) of SARFAESI Act. The respondent Bank advanced term loan of Rs. 15,00,00,000/- and balance outstanding as on 31.03.2018 was stated to be Rs. 14,34,08,824.52/-.
5. The respondent Bank thereafter withdrew the notice dated 03.04.2018 and issued a fresh notice on 03.01.2022 u
The court emphasized the importance of providing detailed information on the amount payable by the borrowers in the notice under Section 13(2) of the SARFAESI Act, as required by Section 13(3).
The legislative intent to prevent judicial or quasi-judicial intervention at the stage of issuance of demand notice under Section 13(2) of the SARFAESI Act.
The court's decision highlighted the importance of considering representations for repayment within a specified time frame under the SARFAESI Act.
Prematurity of the petition seeking to quash a notice issued under Section 13 (2) of the SARFAESI Act.
Point of Law - Section 13 of the SARFAESI Act deals with enforcement of security interest. Sub-section (2) provides for issuance of notice by the secured creditor to the borrower for discharge of lia....
Borrowers have remedies under Section 13(3A) and Section 17 of the SARFAESI Act, 2002 to challenge NPA classification and appeal actions taken by the bank.
Regularization of loan account - Default in payment of installment - Petitioner was already having facility of instalment. The grant of further instalment for regularising loan account is exclusively....
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