VEETEE FINE FOODS LIMITED Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) By way of captioned application, defendant No.3-SBI [State Bank of India] seeks rejection of the suit qua it as well as its consequent deletion from the array of parties.

(2.) Before delving into the respective merits of the contentions, brief facts, as narrated in the plaint, are that the plaintiff, to augment its business, approached defendant No.2-OBC [Oriental Bank of Commerce] and SBI seeking credit facilities. Upon consideration of plaintiff's request, the defendant banks, under a consortium arrangement, provided credit facilities, which were renewed from time to time, with a pari passu charge being created over plaintiff's land, building and other securities. Defendant No.1-PNB [Punjab National Bank] was appointed as the lead bank.

(3.) Plaintiff defaulted in repayment of loan and approached the defendant banks for loan restructuring. Though OBC and SBI approved the restructuring, PNB refused. Consequently, proceedings under SARFAESI Act, 2002 [Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002] were initiated by the defendant banks, and a notice under Sec. 13(2) of the SARFAESI Act was issued to the plaintiff. Resultantly, on 21/8/2013, symbolic possession of the plaintiff's factory, including plant and machinery, was taken under Sec. 13(4) of the SARFAESI Act.