SYSMED LABORATORIES P LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The matter is finally heard today, by consent of both the sides.

(2.) The short facts of the case appear to be that the petitioners had taken loan from the respondent Bank and it appears that the notice under Section 13(2) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'the SARFAESI Act' for short) was issued and thereafter the action has been taken under Section 13(4) of the SRFAESI Act. Thereafter, public notice has been issued for inviting offer for the disposal of the property of the petitioners. It is at that stage the petitioners have approached this Court with a challenge to the validity of the Rule 8(5) of the Security Interest (Enforcement) Rules, 2002 (hereinafter referred to as 'the Rules' for short), contending that the said Rule is ultra vires the Constitution ab initio and null and void. The additional prayer made by the petitioners in the petition is to quash and set aside the public notice dated 25.6.2009 - Annexure-B inviting offer for sale of the property and the second prayer is based on the first prayer for challenge to the validity of Rule 8(5) of the Rules.

(3.) Heard Mr.Shah, learned Counsel for the petitioners, Mr.Chhaya, learned Standing Counsel for respondent No.1, and Mr.Motiramani for Mr.Nair for respondent No.2.