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G. S. SANDHAWALIA, GURBIR SINGH
Gagandeep Singh – Appellant
Versus
Authorized Officer/chief Manager, Punjab & Sind Bank – Respondent
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 pai
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.
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