RAJAN KAKAR Vs. VIJAYA BANK

JUDGEMENT

(1.) Issue Rule. Mr. Sanjeev Pathak, learned counsel waives notice of Rule. With consent of learned counsel for parties, the matter was heard finally.

(2.) The petitioners impugn the respondents' recourse to the Secularization and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002 (hereafter called "Secularization Act") and also an order dated 16th October, 2006 made by the Additional District Judge-cum-Chief Metropolitan Magistrate under Section 14 of the Act.

(3.) The brief facts for the purpose of deciding this case are that the petitioner is a customer borrower of the second respondent He entered into a transaction whereby an amount of Rs. 9,90,000/- was borrowed in the year 2004. In terms of the loan agreement/arrangement, the liabilities were to be liquidated over a period of 10 years by equal monthly instalments to the tune of Rs. 12,700/-. It is alleged that on account of certain compulsions as well as family exigencies the petitioners were unable to keep up the commitment and repay the instalments. As a result, the respondent bank sought to recall the loan and enforce the securities. The petitioners approached the Delhi Legal Services Committee under the Legal Services and Authorities Act, 1987.