The main legal point established in the judgment is that issuing multiple demand notices for the same outstanding amount under Section 13(2) of the SARFAESI Act without withdrawing the previous notices would be deemed as withdrawal of the earlier notices.

V.K. MATHUR, J. (CHAIRPERSON)

1. This Appeal has been preferred by the appellant-Bank under Section 18 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "SARFAESI Act") against the order dated 16th October, 2014 passed by the learned DRT, Allahabad by which the learned DRT allowed the Securitization Application No. 92 of 2013 filed by the respondents and the entire process as initiated by the Bank on the strength of first demand notice issued under Section 13(2) of the SARFAESI Act, dated 9th October, 2012 was quashed. The brief facts of adjudication of the present case are that the respondent company was granted credit facilities by the appellant Bank under various heads for a total sum of Rs. 27.67 crores. The respondent company had mortgaged the immovable property and also plant and machinery for availing the credit facilities. The account of the respondent company became irregular and the appellant Bank classified the account as non-performing asset (NPA) on 26th May, 2012 as per the R.B.I. Guidelines.

2. The appellant-Bank issued a demand notice under Section 13(2) of the SARFAESI Act on 9th October, 2012 demanding an outstanding amount of Rs. 22,96,84,087.42 with interest towards various credit facilities availed by the respondent company. The appellant Bank specifically mentioned the details of secured assets (Immovable properties) against which the Bank intended to proceed for recovery in case the borrower failed to discharge liability within the specific period. As per contention of the appellant, the respondent company did not raise any objection under Section 13(3A) of the SARFAESI Act against the said demand notice.

3. The respondent company failed to liquidate the outstanding dues of the appellant Bank and thereafter the appellant Bank issued possession notice on 29th December, 2012 under Section 13(4) of the SARFAESI Act with regard to the mortgaged immovable property (land and building) situated at Kanpur and another possession notice dated 24th January, 2013 under Section 13(4) of the SARFAESI Act with regard to mortgaged immovable property situated at Moradabad.

4. The respondents preferred a Securitization Application on 13th March, 2013 under Section 17 of the SARFAESI Act before the D.R.T., Allahabad wherein it was prayed that the demand notice dated 9th October, 2012 under Section 13(2) of the SARFAESI Act and the possession notice dated 29th December, 2012 and 24th 'January, 2013 under Section 13(4) be quashed.

5. It has been further stated by the appellant that during the pendency of the Securitization Application No. 92/2013, the appellant-Bank on 29th March, 2014 issued another demand notice under Section 13(2) of the SARFAESI Act to demanding the outstanding amount of Rs. 22,96,84,087.42 along with interest. In this notice the appellant-Bank mentioned the details of the secured asset (movable property, plant and Machinery) against which the Bank intended to proceed for recovery.

6. The appellant-Bank proceed for auction sale of secured immovable properties-land and building of the respondent company, since despite demand notice dated 9th October, 2012 and possession notice dated 29th December, 2012 and 24th January, 2013 the respondent had failed to pay the outstanding dues. An E-auction notice dated 15th September, 2014 was issued for auction of the immovable properties of the respondent company on 20th October, 2014. The respondent also challenged the E-auction dated 15th September, 2014 before the D.R.T., Allahabad.

7. The learned D.R.T., Allahabad vide impugned order dated 16th October, 2014 allowed the S.A. of the respondent company and, accordingly, the entire process as initiated by the appellant-Bank in pursuance of the demand notice dated 9th October, 2012 under Section 13(2) of the SARFAESI Act was quashed. It was also held that the appellant will be liberty to proceed, further either by issuing fresh de