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G. S. SANDHAWALIA, HARPREET KAUR JEEWAN
Harinder Fabrics – Appellant
Versus
Shriram City Union Finance Ltd. – Respondent
JUDGMENT
Ms. Harpreet Kaur Jeewan, J.
The present writ petition has been filed challenging the possession notice dated 24.06.2021 (Annexure P-3) issued under Section 13 (4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'the Act') and for consideration of representations dated 30.03.2021, 28.09.2021 and 21.04.2022 (Annexures P-2 to P-5) for One Time Settlement submitted by the petitioner.
2. As per the version of the petitioner, he had availed business loan from the respondent vide Customer IDH0270141, Agreement No. CDLD3TF1904030001 dated 23.03.2019and took loan of Rs.68,00,000/-, and mortgaged its property as a collateral security. The petitioner could not pay regular installments due to Covid 19 as such the account of the petitioner-firm was declared NPA on 03.02.2020. The respondent issued Demand Notice dated 11.08.2020 (Annexure P-1) under Section 13 (2) of the Act and raised a demand of Rs.75,02,583/- as on 10.08.2020. The petitioner submitted a representation dated 30.03.2021 (Annexure P-2) and requested for One Time Settlement at Rs.35 lakhs. However, the respondent-financial instituti
The court established that the right of redemption under the SARFAESI Act is extinguished upon the issuance of a sale certificate, and timely challenge to bank actions is essential.
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.
Point of Law : There is no repugnancy nor inconsistency between the two remedies under the RDB Act and the Securitisation Act, the Supreme Court observed that “Together they constitute one remedy and....
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