SANTKRIPA TRADING CO. Vs. BANK OF BARODA

JUDGEMENT

(1.) Heard Shri Ashok Pandey, learned counsel for the petitioners and Shri Manish Mehrotra, learned counsel appearing for the respondents Bank.

(2.) The petitioners, by this writ petition have prayed for quashing the e-auction notice dated 25/8/2013, issued by the Bank for auction of the mortgaged assets in exercise of power under Section 13 (4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter called the "Act, 2002").

(3.) Brief facts giving rise to this writ petition are: On an application made by the petitioner no.1 through petitioner no.2 a Cash Credit Limit of an amount of Rs. 1.5 Crores was sanctioned by the Bank in favour of the petitioner no.1. Similarly, on an application made by the petitioner no.3, through petitioner no.4 a Cash Credit Limit of Rs. 1 Crore was sanctioned in favour of the petitioner no.3 by the Bank. The account of the petitioners no.1 and 3 were declared NPA on 28/9/2012. A demand notice dated 06/5/2013, under Section 13(2) of the Act, 2002 was issued calling the petitioner no.1 to pay an amount of Rs. 1,50,17,663.46 and the petitioner no.3 to pay an amount of Rs.1,00,11,977.88. Thereafter the Bank invoked power under Section 13(4) of the Act, 2002 and issued e-auction notice dated 25/8/2013 inviting online tenders for auction of the mortgaged assets. Copy of the e-auction notice dated 25/8/2013 has been filed as Annexure-2 to the writ petition which indicates that a detailed procedure for submitting the bid by electronic transaction has been provided for. Details of the properties to be auctioned has been mentioned in the notice with area and boundaries. Reserved price has also been mentioned in the notice dated 25/8/2013, 27/9/2013 has been fixed as the date and time as 11 A.M. to 12 Noon for e-auction.