ARSHAD ISPAT PARTNERSHIP FIRM Vs. UNION OF INDIA

JUDGEMENT

(1.) Aggrieved by the order dated 29th May 2020 passed by the learned Single Judge in W.P.No.51184/2017, whereby the learned Single Judge dismissed the writ petition, the writ petitioners have filed the instant writ appeal.

(2.) Shorn of unnecessary details, the facts material for the adjudication of this appeal, may be stated thus: The appellants are a partnership firm engaged in the business of manufacture and trade of Sponge Iron from Iron Ore. The appellants sought and were sanctioned financial assistance from the 4th respondent-Corporation Bank (hereinafter referred to as 'Bank' for short), who on 14th October 2009 sanctioned the term loan of Rs.12.00 crores and thereafter, sanctioned an additional sum of Rs.3.00 crores on hypothecation and mortgage of immovable properties which was of deposit of title deeds, this appeal concerns mortgage of a residential apartment built on a land measuring 3990 sq. ft. situated at No.39, Ward No.11, Assessment No.39, Opposite Municipal School Ground, College Road Area, Hospet, Bellary District.

(3.) The appellants having defaulted in payments, the Bank issued a notice on 6th January 2012 invoking section 13(2) of the Securitization and Reconstruction of Financial Assets And Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'SARFAESI Act' for short) calling upon the appellants to pay a sum of Rs.14,85,16,675/- which was the outstanding loan amount and interest accrued at the relevant point of time. The appellants failed to comply with the terms of the notice issued by the Bank pursuant to which a symbolic possession of the property of the appellants was taken on 4th July 2012 and a possession notice was issued under Section 13(4) of the Act.