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).

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 under Section 13(2) of the SARFAESI Act, however the respondent Bank mentioned the balance outstanding as on date of NPA 31.03.2018 as 14,34,08,824.52/- without giving break up of principal and interest amount outstanding from the respondent Bank. The responded Bank only pointed out recorded interest on 03.01.2022 + other charges amounting to Rs. 8,69,80,317.98/- and shown the total outstanding as on 03.01.2022 as Rs. 23,03,89,142.50/-. Therefore in the notice dated 03.01.2022, there is no break up of principal and outstanding amount as on the date of NPA is stated by the respondent Bank.

6. Learned advocate Mr. Aditya Gupta for the petitioner submitted that the notice issued by the respondent Bank on 03.04.2018 which is withdrawn as well as the notice dated 03.01.2022 issued are contrary to the decision of the Division Bench of this Court in case of Punjab National Bank vs. Mithilanchal Industries Pvt. Ltd. 2020 SCC Online Guj. 3441. It was submitted that the Division Bench of this Court has held that the notice which does not give the break up of the principal and the interest amount in the notice under Section 13 (2) of the SARFAESI Act, then such notice is contrary to the provisions of the Section 13 of the SARFAESI Act. Learned advocate Mr. Gupta invited the attention of this Court to the paragraph nos.29 to 33 of the aforesaid judgment to point out that without breakup of the outstanding amount of principal and interest it would not be possible for the borrower to make representation as required under Subsection (3A) of Section 13 of the SARFAESI Act as the borrower would not have any detail of the amounts found due and payable by the secured creditors and being demanded as such by notice under Subsection (2) of Section 13 of the SARFAESI Act and in such circumstances the petitioner would not be in a position to make any representation or make any objection as amounts outstanding under different heads are not provided by the responded Bank.

7. On the other hand learned advocate Mr. Sevak submitted that the notice dated 03.01.2022 which was issued after withdrawal of the notice dated 03.04.2018 by the respondent Bank has mentioned interest which has accrued on the date of outstanding amount on NPA but the breakup of the principal amount and the interest on the date of NPA is not provided.

8. Having heard the learned advocates for the respective parties and having considered the facts of the case, it would be necessary to refer to the following observations made by the Division Bench in the case of Punjab National Bank vs. Mithilanchal Industries Pvt. Ltd. (Supra) which reads as under:

“29. The words used in Section 13(3) of the SARFAESI Act are “details of the amount payable by the borrower as also the details of the secured assets intended to be enf