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LISA GILL, AMARJOT BHATTI
Rajesh Bhambri (Since Deceased) Through Lrs – Appellant
Versus
District Magistrate, Faridabad – Respondent
JUDGMENT
Lisa Gill, J.
This writ petition has been filed for setting aside notice dated 05.02.2020 (Annexure P12) issued pursuant to orders dated 06.08.2014 and 10.02.2015 under Section 14 of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short - 'SARFAESI Act') and sale notice dated 14.02.2020 (Annexure P14) with further direction to respondent No. 2 to grant extension for deposit of balance payment in terms of One Time Settlement (OTS) sanctioned on 12.12.2018 (Annexure P7).
2. It is submitted that petitioner, who had set up small manufacturing unit at Badshahpur, availed credit cash limit of Rs. 8 crores from respondent No. 2 i.e. respondent - Bank and properties, as detailed in para 3 of writ petition (house and factory shed), were mortgaged. However, due to unfortunate circumstances beyond control of petitioner, including ill-health of petitioner (now represented by his LRs), there was financial indiscipline due to which loan account was declared Non Performing Asset (NPA) on 31.08.2013. Notice under Section 13(2) of SARFAESI Act was issued on 30.09.2013 claiming deposit of Rs. 8 crores as outstanding on 31.08.2013. Pet
The SARFAESI Act provides specific remedies for grievances, and borrowers do not have a vested right to One Time Settlement benefits, which are subject to the bank's discretion.
The duty of a litigant to disclose all material facts and the bank's right to protect its recovery were the central legal points established in the judgment.
A writ petition is maintainable against a scheduled bank under Article 226 of the Constitution of India, as the bank is performing public functions and is governed by the provisions of the Banking Re....
Point of law: Loans by financial institutions are granted from public money generated at the taxpayer’s expense. Such loan does not become the property of the person taking the loan, but retains its ....
The High Court lacks jurisdiction to intervene in proceedings under the SARFAESI Act, reinforcing the necessity for adherence to the statutory remedy framework prior to court interference.
Point of Law - It is not for a litigant to decide what fact is material for adjudicating a case and what is not material. It is the obligation of a litigant to disclose all the facts of a case and le....
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