ARNAV FIBRES PRIVATE LIMITED Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) We have heard Shri Kamal Trivedi, learned Senior Counsel assisted by Shri Vishvas K. Shah and Shri Vinay D. Bairagar, learned counsels for the appellants, Shri Rashesh Sanjanwala, learned Senior Counsel assisted by Shri Vivek Sevak, learned counsel for the respondent No.1-Punjab National Bank and Shri Maulik Nanavati, learned counsel for the respondent No.2-National Highway Authority of India.

(2.) Present Letters Patent Appeal under Clause-15 of the Letters Patent has been preferred assailing the correctness of the judgment and order dated 14 th August, 2020 whereby the learned Single Judge dismissed the Special Civil Application No. 9357 of 2020 filed by the present appellants. By means of the said petition, the appellants had challenged the legality, validity and correctness of the notice under Section 13(2) and Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act , 2002(hereinafter referred to as "the SARFAESI Act ") issued by the respondent-Punjab National Bank.

(3.) Before us when this matter was taken up, Shri Kamal Trivedi, learned Senior Counsel submitted that the appellants were good pay masters and had been in financial dealing with the respondent Bank for years and only for a couple of defaults in payment of installments, proceeding under the SARFAESI Act had been initiated. We had required the appellants to show their bona fides by way of coming forward with Bank Draft of Rs.4.00 Crore. This was directed by order dated 7th September, 2020, the first order passed in the appeal. Subsequently, several orders were passed. There are disputed questions regarding the Auditor's report of Stock and Book Debts, but we are not going into that question.