BANK OF INDIA, ERNAKULAM Vs. ASSISTANT PROVIDENT FUND COMMISSIONER AND RECOVERY OFFICER, E.P.F. ORGANISATION, KOCHI AND OTHERS

JUDGEMENT

(1.) THE petitioner, hereinafter referred to as the "bank" is a banking company governed by the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. Respondents 2 to 5 are its debtors, who have executed security documents creating equitable mortgages over immovable properties, in favour of the Bank.

(2.) THE debt that respondents 2 to 5 owes to the bank is a "security debt" as defined under section 2(ze) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, hereinafter referred to as the "SARFAESI Act." The bank is thus a "secured creditor" as defined in section 2(zd) having a "Security interest", as defined in section 2(zf), over the mortgaged property, which is a "security asset" in terms of section 2(ze); of the SARFAESI Act.

(3.) THE bank proceeded to enforce the security interest under section 13(1) of the SARFAESI Act by issuing notices, followed by take over of constructive possession of the properties and thereafter, by take over of actual physical possession of the factory of the respondents 2 to 5 and a residential building and the land on which it stands, all of which are part of the security asset. Such take over of physical possession was also published in terms of section 13(4) of the SARFAESI Act.