VIJAYA BANK Vs. EPFO

JUDGEMENT

(1.) The present writ petition has been filed by the petitioner Bank seeking quashing of two prohibitory orders dated 20.01.2012, whereby the petitioner Bank was restrained by respondent nos.1 & 2 (hereinafter collectively referred to as 'EPFO') from delivering certain immovable properties (Industrial Plot Nos.44 & 45, Block-B, Sector 58, NOIDA), which the petitioner Bank had taken physical possession of under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the "SARFAESI Act"). The petitioner has also challenged an attachment order dated 20.01.2012 passed by the respondent nos.1 & 2 under Section 8B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (hereinafter referred to as the "EPF Act").

(2.) Brief facts of the present case are that petitioner Bank had granted various credit facilities to one M/s Creative Home Fashions Pvt. Ltd/ respondent no.3 (hereinafter referred to as the 'CHF'). The said credit facilities were secured by M/s G.K. Products Pvt. Ltd/ respondent no.4 (hereinafter referred to as the 'GKP') and M/s Well Computer Exim Pvt. Ltd/ respondent no.5 (hereinafter referred to as the 'WCE'), who had stood as guarantors. GKP and WCE are hereinafter collectively referred to as 'guarantors'. GKP and WCE also created equitable mortgage in favour of the petitioner, in respect of their immovable properties, i.e. Industrial Plot No.44, Block-B, Sector 58, NOIDA and Industrial Plot No.45, Block-B, Sector 58, NOIDA respectively. The said properties are hereinafter referred to as the 'subject properties'.

(3.) The CHF defaulted in the repayment of the credit facility and the loan accounts of the CHF were declared as Non-Performing Assets (NPA). Thereafter, the petitioner bank issued a notice dated 02.12.2008 under Section 13(2) of the SARFAESI Act to CHF as well as to the guarantors demanding a sum of Rs. 29,12,40,939 alongwith interest. Since the said demand was not satisfied, the petitioner took measures under Section 13(4) of the SARFAESI Act and symbolic possession of the aforementioned subject properties was taken by the petitioner on 31.03.2009.