ABHILASH BERLY Vs. FEDERAL BANK LTD

JUDGEMENT

(1.) The petitioner is aggrieved with the recovery proceedings initiated under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'SARFAESI' Act). The challenge raised is on two grounds; one of limitation and the other of the necessary requirement for initiating a proceeding under Sec. 13(2) of the SARFAESI Act having not been satisfied.

(2.) The ground of limitation is urged on the contention that, as per Sec. 36 of the SARFAESI Act, there is a limitation provided for taking proceedings under the Act, which is relatable to the limitation as provided in the Limitation Act. Art. 62 of the Limitation Act, provides a period of 12 years, for enforcement of payment of money secured by a mortgage; which has to run from the date when the money became due, which in the instant case, relates back to the date on which the amounts were recalled in the year 2000.

(3.) The brief facts to be noticed are that the petitioner availed a credit facility from the respondent Bank on 10.01999 of Rs.3,00,000.00. The petitioner also mortgaged his property for the aforesaid loan. The Bank filed a suit numbered as O.S No.131/2000, the plaint of which is produced as Ext.P1, on 06.09.2000. The notice was issued prior to the filing of the suit on 05.02.2000 and the suit was decreed on 24.07.2002 by Ext.P2. A proceeding for execution of the decree, is filed before the Debt Recovery Tribunal Ernakulam numbered as O.A 426/201 The present proceedings under the SARFAESI Act, initiated first in 2013, is challenged on the ground that the limitation expired in 2012, taking the period when the period of limitation as commenced on 05.02.2000, on which date, the loan was recalled and notice was issued.