DECENT DIA JEWELS PRIVATE LIMITED Vs. DENA BANK

JUDGEMENT

(1.) By way of this petition under Articles 226 and 227 of the Constitution of India, the petitioners have made following prayer in terms of para 42(A).

(2.) Vide order dated 20.3.2018, the DRT - II, Ahmedabad has returned the original Securitization Application being Securitization Application No.253 of 2017 filed by the petitioners under section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short "the Act") to the petitioners for presenting the same before the learned DRT - II, Mumbai. In nutshell, the petitioners herein challenged the entire action of the respondents Bank including the notices as well as possession notices under section 13(2) and 13(4) of the Act including order of return of S.A. No.253 of 2017 for presenting it before the DRT - II, Mumbai.

(3.) Briefly stated, the petitioners filed an application under section 17 of the Act against the order dated 23.1.2018 passed by the learned Additional Chief Metropolitan Magistrate, Mumbai under section 14 of the Act. The petitioner No.1 availed financial assistance of Rs. 105 crore from the Syndicate Bank Consortium, which comprises of Syndicate Bank, Dena Bank, Union Bank of India and Axis Bank against hypothecation of movable properties and equitable mortgage of immovable properties. The said financial assistance was further enhanced from time to time and ultimately, Dena Bank became the lead bank. The Dena Bank Consortium again enhanced the working capital limit and further necessary documents were executed by the petitioners by creating equitable mortgage by deposit of title deeds. Since the petitioners failed to regularize the account maintained with the respondents Bank, each bank issued separate demand notices to recall the entire loan amount.