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G. S. SANDHAWALIA, HARPREET KAUR JEEWAN
Ahuja Cotspin Pvt. Ltd. – Appellant
Versus
Authorized Officer, Punjab National Bank – Respondent
| Table of Content |
|---|
| 1. petitioner challenges bank's possession notice. (Para 2 , 3) |
| 2. respondent details previous litigations and compliance. (Para 4) |
| 3. arguments regarding violations of statutory provisions. (Para 5 , 6) |
| 4. court reviews outstanding dues and remedies available. (Para 7 , 8 , 9) |
| 5. court cites precedent on extraordinary circumstances. (Para 10 , 11) |
| 6. writ petition dismissed; directions regarding alternatives. (Para 12 , 13) |
JUDGMENT
Harpreet Kaur Jeewan, J. - The present Civil Writ Petition has been filed challenging the notice issued by the respondent bank under section 13(4) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002 (hereinafter referred to as`the Act').
2. As per facts, the petitioner-company availed financing of Rs.28.80 crore from State Bank of India. Thereafter the petitioner further availed financing of Rs.15.50 crore and Rs.9.35 crore, respectively for its both the units. In the year 2016-17, petitioner company again availed financing of Rs.38 crore from 7 banks under consortium arrangement in which lead bank is respondent No.2 Punjab National Bank. The loan account of the petitioner was declared as NPA
Court confirmed that the borrower has alternative remedies under the NPA Act despite alleging procedural irregularities by the Bank.
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....
Prematurity of the petition seeking to quash a notice issued under Section 13 (2) of the SARFAESI Act.
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