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P. NAVEEN RAO, NAGESH BHEEMAPAKA
Sri Abhishek Steel & Power Ltd. , – Appellant
Versus
Union of India, through its Ministry of Finance and Law, New Delhi, India, rep. by its Secretary – Respondent
ORDER :
P.Naveen Rao, J.
First petitioner-company is engaged in the manufacturing of iron and structure steel for use in Transmission-cum-Telecom Towers. First petitioner-company applied to the 3rd respondentBank for sanction of cash credit limit to a tune of Rs.30.00 crores and letter of credit to a tune of Rs.7.00 crores and the Bank Guarantees. The loan account was made operational from 24.09.2009. In February, 2011, cash credit limit of Rs.9.00 crores was sanctioned. At the time of sanction of loans, the petitioner-company pledged the immovable properties, plant and machinery as collateral security. Holding that the first petitioner-company defaulted in repayment of the loan, the loan account was classified as Non-Performing Asset (NPA) and the Bank has taken recourse to the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘Act, 2002’) and Recovery of Debts and Bankruptcy Act, 1993 (for short, ‘Act, 1993’).
2. On 21.09.2012, the 3rd respondent-bank issued possession notice informing the petitione
Point of law: High Court has no jurisdiction to entertain writ petitions under Article 226 of the Constitution of India, relating to matters coming under the purview of SARFAESI Act, 2002, where a st....
A writ petition under Article 226 is not maintainable when an effective statutory remedy exists under the Securitisation Act, especially in recovery related matters.
Appeal – Any waiver of pre-deposit to entire extent would be against statutory provisions and not sustainable in law.
Pre-deposit under Section 18 of the SARFAESI Act is a mandatory requirement for maintaining an appeal before the Appellate Tribunal, and it cannot be completely waived even in the face of financial h....
The main legal point established in the judgment is that the provision relating to pre-deposit under Section 18 of the SARFAESI Act applies to both interlocutory and main application orders, and ther....
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