JUDGMENT

G.S. Sandhawalia, J. - The present shall dispose of two writ petitions i.e. CWP- 18968-2020 and CWP-11293-2022, as the same have been filed by the same petitioners who are the loanees and challenging the action of the respondent-Bank under the Securitization and Re-construction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 2002 Act').

2. The challenge in the first writ petition bearing CWP-18968- 2020 is to the possession notice dated 08.10.2020 (Annexure P-1) issued under Section 13 (4) of the 2002 Act, whereby on account of loan amount of Rs.66,80,925.18 which was due on 30.09.2019, the property had been taken over. The same was in pursuance of the notice dated 06.12.2019 (Annexure P-2), wherein the petitioners were put to notice under Section 13 (2) of the 2002 Act regarding the term loan which they have taken of Rs.47.50 lakhs and Cash Credit Hypothecation limit of Rs.50 lakhs, which had been modified thereafter and CC Limit was enhanced from Rs.50 lakhs to Rs.1 crore. On account of financial indiscipline the cash credit facility had been declared as 'Non-Performing Asset' (NPA) on 31.03.2014. Thereafter, certain amounts had been paid, but it was noticed that there was a debit balance of Rs.66,80,925.19 on 30.09.2019.

3. Initially on 10.11.2020 while issuing notice of motion statement was made that since petitioner No.1 was in jail in connection with a case under Section 302 IPC but his family were willing to settle the dispute as quickly as possible. It was also undertaken that the petitioner would arrange a sum of Rs.40 lakhs, which were to be paid to the bank on or before 18.12.2020. Prior to that they had to pay Rs.20 lakhs on or before 27.11.2020. Resultantly, their possession had been protected by an order of status-quo. It was thereafter noticed on 01.12.2020 the amounts had not been remitted as undertaken on the earlier date and status-quo order was, accordingly, vacated.

4. The reply was thereafter filed by the respondent-Bank taking the plea of alternative remedies and also pointing out that no objection had been raised with regard to wrong declaration of the account as NPA after issuance of notice under Section 13 (2) of the 2002 Act.

5. On 28.01.2021 another opportunity was given that the necessary amount in pursuance of the order dated 10.11.2020 be deposited in the meantime. CM-1975-CWP-2022 was filed on 04.03.2020 for restraining the respondents from selling secured assets of petitioners as per notice dated 21.01.2020 (Annexure A-1) and that two months was needed to settle the account. The said application was dismissed as withdrawn on 04.03.2022. Similarly, CM-4182-CWP-2022 was filed that the physical possession of rice mill and plant had already been taken which had market value more than of Rs.8 crores and respondents are trying to take possession of the house of the petitioners. The said application was also dismissed by noting the conduct of the writ petitioners.

6. Thereafter, second writ petition bearing CWP-11293-2022 came to be filed, wherein challenge has been raised to the e-auction and sale conducted by the respondent-Bank and the sale certificate and public notice dated 21.03.2022 (Annexure P-24), whereby the mortgaged property was put to auction. The said case ordered to be heard with the first case i.e. CWP-18968-2020. CM-8761-CWP-2022 was also filed for restraining the respondent-Bank from getting sale deed ex