C.S.COMPANY Vs. PUNJAB & SIND BANK

JUDGEMENT

(1.) HEARD learned counsel for the appellants in both the cases and learned counsel for the respondent-Bank.

(2.) IT is necessary to mention certain facts in order to understand and appreciate the stand of each party in these two appeals.

(3.) THEN coming to the questions or issues raised in W.A.No.1779 of 2012, the contention of the appellant is, when the proceedings in question are initiated under SARFAESI Act, SARFAESI Act alone has to be looked into either on the issue of Non Performing Asset (NPA for short) or the limitation contemplated under the Act, therefore, the observation of the learned Single Judge that once the account is declared as NPA in 1985 that would take care of the requirement of SARFAESI Act also is incorrect. According to the learned counsel for the appellant, from the date of declaration of account as NPA, the initiation of proceedings must be within 12 years as contemplated under Section 36 of the Act. As the NPA declaration was in 1985 and the SARFAESI proceedings were initiated in 2012 much later than 12 years, therefore, proceedings have to be terminated or quashed holding as beyond the period of limitation contemplated under the Act. He further contends, if at all they intend to proceed under the SARFAESI Act, the account has to be declared once again as NPA and then proceed with the matter.