ABDUL AZEEZ Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) Whether Bank can call in aid the provisions of S.13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short "Securitisation Act") against a borrower at a time when the question of liability of the borrower to the Bank and the question relating to the correct amount payable, are pending consideration before the Civil Court between the parties, is the question that has been posed in these cases.

(2.) Writ Petitioner was served with notice dated 10.2.2004 by the Punjab National Bank under S.13(4) of the Securitisation Act calling upon him to pay the amount of Rs.6,17,058/- towards the outstanding amount under the loan availed of by him in respect of M/s. M.S .Oils and Rs. 7,11,708/- towards the outstanding amount under the loan availed of by him in respect of M/s. S.B. Bricks, within a period of sixty days from the date of receipt of the notice; failing which it was informed that the secured assets would be proceeded with for realisation of the amounts due to the Bank.

(3.) Appellant - writ petitioner as the proprietor of M/s. S.B .Bricks had availed cash credit facility of Rs. 3,90,000/- from the erstwhile Nedungadi Bank which was later amalgamated with Punjab National Bank on 1.2.2003. Appellant had filed O.S. No.572 of 2002 before the Munsiff's Court, Kollam for settlement of accounts contending that he is liable to pay Rs.76,631/-. Bank has filed O.S.No.45 of 2003 before the Sub Court, Kollam for recovery of the amount of Rs. 5,08,882/- with interest. There was an order of attachment in O.S. No. 45 of 2003. Both the suits are pending. Appellant, who is the proprietor of M/s. M.S. Oils has also availed of loan of Rs. 5,00,000/- from the erstwhile Nedungadi Bank for settlement of accounts and for refund of Rs.32,343/-. Nedungadi Bank had also filed suit O.S. No. 47 of 2003 before the Sub Court, Kollam for recovery of Rs.5,72,530/- with future interest.