PRIYESH AGRO INDUSTRIES Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) Leave to amend the cause title for impleading the District Magistrate, and the MamlatdarExecutive Magistrate as the party-respondents in the petition is granted. Necessary amendment be carried out forthwith.

(2.) The petitioners by way of present petition filed under Article 226 of the Constitution of India have prayed for the following reliefs:

(3.) The broad facts as transpiring from the petition and the annexures thereto are that the petitioner no.1 is a partnership firm and the petitioner no.2 is the father of one of the partners of the petitioner no.1 firm. According to the petitioners, the petitioner no.1 is a small enterprise as provided under the Micro, Small and Medium Enterprises Development Act, 2006. The petitioner company had availed finance from the respondent -Bank by way of cash credit limit of Rs.12 crores and term loan of Rs.1.20 crores. According to the petitioners, the petitioner no.1 company was regularly paying its installments, however, due to implementation of demonetization and GST, the petitioners' business started to suffer. It is the further case of the petitioners that the respondent Bank failed to act as per the guidelines of the RBI being Framework of Revival and Rehabilitation of Micro, Small and Medium Enterprises, dated 17.03.2016, and classified the account of the petitioner no.1 as NonPerforming Asset (hereinafter referred to as 'NPA') on 30.10.2018. The respondent Bank thereafter issued a demand notice dated 17.04.2018 to the petitioners under section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'the SARFAESI Act'). The petitioners therefore raised objections by writing a letter dated 13.06.2018, which objections were dealt with by the respondent bank as per section 13 (3- A) of the SARFAESI Act as per the letter dated 28.06.2018. According to the petitioners, however in the meantime, the respondent Bank proceeded to take symbolic possession of the secured assets of the petitioners by issuing possession notice dated 27.06.2018 informing the petitioners that the respondent Bank would take possession thereof on 05.07.2018. The respondent-Bank thereafter proceeded under the provisions of the SARFAESI Act by filing application and an affidavit before the District Magistrate under section 14 of the SARFAESI Act for taking over physical possession of the premises in question belonging to the petitioners. The petitioners submitted their objections to the said application. However, the Respondent District Magistrate vide order dated 30.10.2018 (Annexure-J) allowed the said application and authorised the respondent Mamlatdar and Executive Magistrate to take physical possession of the premises in question belonging to the petitioners. Accordingly, the respondent-Mamlatdar and Executive Magistrate vide letter dated 12.12.2018 has informed the petitioners that pursuant to the order passed by the District Magistrate under section 14 the SARFAESI Act possession of the premises in question shall be taken over on 18.01.2019. The petitioners therefore filed the present petition on 15.01.2019 seeking reliefs as stated hereiabove.