M/S AROMA CHEMICALS Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) Heard learned counsel for the parties. The present writ petition has been filed by the petitioners praying for quashing of the initial notice dated 30.05.2016 issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred as 'the Act, 2002') and have also sought quashing of the order dated 31.03.2016 by means of which the petitioners' account has been classified as NPA (Non Performing Asset) and a further relief has also been sought for quashing of the order dated 25.07.2016 by means of which objections filed by the petitioners under Section 13 (3A) of the Act, 2002 has been rejected.

(2.) The contention of the learned counsel for the petitioners, at the very outset, is that the accounts of the petitioners have been wrongly classified as NPA and that the classification has been done in violation of the guidelines of the Reserve Bank of India.

(3.) Further contention is that on the relevant date on which the account of the petitioners was classified as NPA as well as even on the date the F.I.R. was lodged, there was sufficient stock available as security towards the financial aid provided by the bank and thus, their account has been wrongly classified as NPA and moreover the second notice under Section 13(2) of the Act, 2002 is not maintainable.