JUDGMENT :

M.S. RAMACHANDRA RAO, J.

The background facts

1. Petitioner No. 1 is the Company and petitioners No. 2 and 3 are its Directors.

2. Petitioner No. 1 had availed certain credit facilities from the Allahabad Bank (respondent No. 1) and petitioners No. 2 and 3 stood its guarantors. The residential House No. 758, Sector 14, Urban Estate, Faridabad of petitioner Nos. 2 and 3 was mortgaged to the respondent-Bank alongwith hypothecation of stock, plant and machinery.

3. The loan account of petitioner No. 1 was classified as a Non- Performing Assets (for short ‘NPA’) on 31.10.2017.

4. Thereafter, respondent-Bank issued notice dated 23.11.2017 under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002 (hereinafter referred to as ‘SARFAESI Act’) demanding payment of Rs. 2,62,98,047.72.

5. The respondent-Bank filed an application under Section 14 of the SARFAESI Act before the District Magistrate, Faridabad. On 14.06.2018, the said application was allowed and the respondent-Bank was permitted to take physical possession of the residential house of the petitioners.

6. Since the possession was not being delivered, the respo