MEHER CASHEW COMPANY Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) The petitioners, who have availed financial assistance from the 1st respondent-Union Bank of India, seek to keep in abeyance proceedings for dispossession of the petitioners until Ext.P3 Miscellaneous Appeal filed before the Debt Recovery Appellate Tribunal, Chennai get listed and orders passed in Ext.P4 stay petition.

(2.) The petitioners state that they have availed a credit facility in the form of OCC at a limit of ?1.2 Crores from the 1st respondent-Bank for doing cashew business. The petitioners were maintaining the account to the satisfaction of the respondents. However, when certain defaults occurred, the respondents illegally classified the account as NPA and initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

(3.) The respondents first issued a notice of demand for ?1,34,37,725.18 as on 1/4/2021. Later, without serving demand notice on all the parties, the Bank issued possession notice on 28/9/2021. The respondents failed to make publication of possession notice.