KUNWAR SINGH Vs. DISTRICT MAGISTRATE, NAINITAL AND OTHERS

JUDGEMENT

(1.) Present petition has been filed by the petitioner for quashing the impugned order dated 30.08.2016 passed by the District Magistrate, Nainital/ respondent no. 1 and the related proceeding under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

(2.) Briefly put, the case of the petitioner is that the petitioner is the proprietor of J.K. Trading Company. He took the loan from respondent no. 3 in the following manner: <FRM>JUDGEMENT_31_LAWS(UTN)10_2016_1.html</FRM>

(3.) In the year 2014-15 petitioner met an accident and was hospitalized for a long time. Thereafter, some dispute arose between the petitioner and his wife and the petitioner had to pay Rs. 12,50,000/- to his wife. Due to the personal problems of the petitioner, he could not concentrate on his business and could not pay the due installments in time. Due to non-deposit of installment in time, the respondent Bank declared the loan account of the petitioner as NPA and issued notices under Section 13(2) of SARFAESI Act, 2002. Vide notice dated 15.03.2016; petitioner was restrained by the Bank under Section 13(4) of the Act from dealing with the properties mortgaged with it. Against the notice dated 15.03.2016, petitioner preferred a petition (SA No. 245 of 2016) before the Debt Recovery Tribunal, Lucknow. During the pendency of petition before the Debt Recovery Tribunal, respondent no. 3 proceeded before the District Magistrate and the impugned order dated 30.08.2016 was passed by the District Magistrate. Hence this petition.