SELVARAJ PRABHU Vs. PUNJAB NATIONAL BRANCH

JUDGEMENT

(1.) This writ petition has been filed by the petitioners seeking a writ of mandamus directing the 2nd respondent to consider their plea to refer the matter to the Lok Adalat, while directing the further proceedings initiated by the 1st respondent to be kept in abeyance.

(2.) The 1st petitioner borrowed a sum of Rs.17.75 Crores and the 2nd respondent borrowed a sum of Rs.1.85 Crores, totally a sum of Rs.19.60 Crores, from the 1st respondent Bank and they also executed collateral security on 30.05.2016, however, they defaulted in repayment of the amount and hence, the account was classified as "Non Performing Asset (NPA)" on 26.10.2017.

(3.) Thereafter, the 1st respondent proceeded under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act , 2002 ("SURFAESI Act"). The petitioners' attempt to stall the proceedings ended in failure, since they could not comply with the conditional order. Some of the properties of the petitioners were brought up for auction. As a consequence thereon, sale certificates were also issued. At that stage, the petitioners filed an application seeking to refer the matter to Lok Adalat by invoking Section 20 of the Legal Services Authorities Act, 1987. As the said application has not been numbered and taken up for hearing, the present writ petition has been filed.