BANK OF INDIA Vs. ASST PROVIDENT FUND COMMISSIONER

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 Industrial Act, 2002, hereinafter referred to as the "SARFAESI Act". The bank is thus a "secured creditor" as defined in Section 2 (zd) having 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 second respondent, going by its activities, is an establishment covered under Section 1(3) (b) of the Employees Provident Funds and Miscellaneous Provisions Act, 1952, hereinafter referred to as "EPF Act" and respondents 3 to 5, being its Managing Director / Directors, are "employers " in relation to the said establishment, as defined in Section 2(e) of the EPF Act. The said establishment is a defaulter of various dues, under EPF Act and the schemes thereunder, for several years. Going by the statement filed by the first respondent, the Assistant Provident Fund Commissioner and Recovery Officer of the Employees Provident Fund Organisation, the defaulted amounts for the period 6/99 to 8/04 is Rs. 18,59,100.55/- with incidents, out of which Rs. 6,33,868/- is the amount deducted by the employers from the wages of the workers of the establishment.