(1.) Proceedings initiated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) is under challenge in this Writ Petition. Consequent to default committed in repayment of a loan availed by the Petitioner from the 1st Respondent Bank, a suit was filed in the year 1997, which was decreed in favour of the 1st Respondent as per Ext.P2, on 30.10.1998. It is contended that no execution petition was filed within the limitation period of 12 years. According to the Petitioner the proceedings under the SARFAESI Act was initiated only in December 2009, and steps as contemplated under Section 13(4) was intimated through Ext. Pl notice, issued only on 17.1.2011. Under such circumstances the proceedings is challenged on the ground that it is barred by limitation, as prescribed under Section 36 of the SARFAESI Act.
(2.) In the counter affidavit filed on behalf of Respondents it is mentioned that an execution petition was filed before the Sub Court within the period of limitation, and the Petitioner had already entered appearance and raised contentions regarding maintainability of the execution petition in that Court, on the ground that the amount sought to be recovered is more than 10 lakhs.
(3.) Regarding the question of limitation, contention of the Respondents is that, the proceedings was initiated by virtue of Ext. R2(a) notice issued under Section 13(2) on 1.12.2009 and it was received by the Petitioner as early as on 3.12.2009. The debt in question which is sought to be recovered through the impugned proceedings is the 'decree debt', which had fallen due as on 30.10.1998 (date of the decree). As per the definition of 'Debt' under Section 2(h)(a) of the SARFAESI Act read with Section 2(g) of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (RDB Act) it includes amounts covered under a decree. Therefore, the 'debt' which is sought to be recovered through the SARFAESI proceedings is the 'decree debt' and the period of limitation starts only from the date of the decree. Computed on that basis the notice under Section 13(2) was issued well within the period of limitation stipulated under Article 136 of the Limitation Act. Hence it is not barred under Section 36, is the contention.