ORAL ORDER

1.Heard learned Senior Advocate Mr.Devang Nanavati assisted by learned advocate Ms. Prachiti Shah for the petitioner and learned advocate Mr. G.H.Virk for respondent Nos. 3 to 6 through video conference.

2.By this petition under Articles 226 and 227 of the Constitution of India, the petitioner has prayed for the following reliefs:

“A. This Hon’ble Court may be pleased to allow and admit the present Special Civil Application;

B. This Hon’ble Court may be pleased to issue a writ of Mandamus or a writ in the nature of Mandamus or any other appropriate Writ, Order or Direction quashing and setting aside the impugned orders dated 05.12.2019 and 25.07.2019 passed by the Ld. District Magistrate, Anand in the matter bearing No. POL/2/Vashi/6756 & POL/2/Vashi/4633 under section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Annexure A hereto);

C.This Ho’ble Court may be pleased to remand and relegate the matter being Matter No. POL/2/Vashi/6756 back to the Ld. District Magistrate, Anand for its adjudication and disposal in accordance with law.

D. Pending hearing and till final disposal of the present Petition, This Hon’ble Court may be pleased to stay the operation, execution and enforcement of the impugned orders dated 05.12.2019 and 25.07.2019 passed by the Ld. District Magistrate, Anand in the matter bearing POL/2/Vashi/4633 under section 14 of The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002(Annexure A hereto);

E. An ex-parte ad-interim relief in terms of Prayer (D) above may kindly be granted;

F. Such other and further releif/s as may be deemed just and proper in the facts and circumstances of present case may kindly be granted.”

3.Brief facts of the case are as under:

3.1 The petitioner is a private limited company incorporated under the provisions of the Companies Act, 2013 and registered as an asset reconstruction company.

3.2 Respondent no.3 desired to avail loan facility from Religare Finvest Limited (For short “RFL”). Accordingly respondent nos. 3 to 6 initially availed loan to the tune of Rs. 10,00,00,000/- (Rupees Ten Crores) from RFL vide Loan Agreement/Account No.XMORVAD00061474 dated 30th June, 2015. Along with the loan, respondent no.4 also executed a Deed of Mortgage on 21st July, 2015 bearing registration no.7649 in favour of the petitioner whereby respondent no.4 deposited the title deed of immovable property consisting of land admeasuring 1162.50 sq. mtrs and guest house admeasuring 2712.50 sq. mtrs, totalling to 3875 sq .trs together with all constructions therein situated at Revenue Survey no. 1582/2, City Survey Seat No.56, T.P. Scheme No.4, Final Plot No.72 in the sim of village Anand, Taluka and District Anand.

3.3 Respondent nos. 3 to 6 thereafter also took a further loan of Rs. 2,01,50,000/-(Rupees Two Crore One Lakh Fifty Thousand) as a top-up facility vide Loan Agreement/Account No.XMORVAD00064440 dated 30th September, 2015. Respondent no.4 executed another Deed of Mortgage on 30th September, 2015 mortgaging the mortgaged property for the total loan amount of Rs. 12,01,50,000/- (Rupees Twelve Crore One Lac Fifty Thousand).

3.4 It is the case of the petitioner that respondent no.3 failed to make payment of principal amount and interest as per the schedule of payment as per the loan agreements and therefore, the RFL declared the account of respondent no.3 as Non Performing Asset(NPA) on 31st July, 2017 in accordance with the circular/guidelines for Asset Classification issued by the Reserve Bank of India(RBI).

3.5 RFL thereafter issued a notice of demand under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ‘SARFAESAI Act’)read with Security Interest (Enforcement) Rules, 2002 (for short ‘Enforcement Rules’) on 4th August, 2017 calling upon the respondent nos. 3 to 6 to pay total sum of Rs. 10,03,48,384.70