AUM JEWELS AND 3 OTHERS Vs. VIJAYA BANK

JUDGEMENT

(1.) This petition seeks the quashing of the possession notice dated 6 March 2017 issued by the Authorized Officer of the respondent-Vijaya Bank under the provisions of the Securitization and Reconstructions of Financial Assets and Enforcement of Security Interest Act, 2002 'the Act' read with Rule 8 of the Security Interest (Enforcement) Rule, 2002. The petitioner has also sought the quashing of the notice dated 15 December 2016 issued under subsection (2) of Section 13 of the Act as also the newspaper publication dated 9 March 2017 for taking possession.

(2.) The petitioners were granted various credit facilities by the respondent-Bank and on certain terms and conditions contained in the agreements and documents executed by the petitioners in favour of the Bank. The petitioners committed default in making the payment of the principal amount and interest as a result of which the account of the petitioners was declared as Non Performing Asset 'NPA' on 31 December 2014. Thereafter, a notice dated 1 January 2015 under sub-section (2) of Section 13 of the Act was issued. The petitioners had earlier filed Writ Petition No. 15456 of 2015 to assail the declaration of the account of the petitioners as NPA as also the notice issued under sub-section (2) of Section 13 of the Act. An order under sub-section (4) of Section 13 was also passed on 17 March 2015. This order was also challenged. The writ petition was allowed by judgment dated 18 May 2015. The order dated 31 December 2014 declaring the account of the petitioners as NPA was set aside. The notice under sub-section (2) of Section 13 of the Act and the order passed under sub-section (4) of Section 13 of the Act were, accordingly, set aside. The respondent-Bank filed Special Leave to Appeal No. 26018 of 2015 which was disposed of on 21 September 2015. The Supreme Court found no justification to interfere with the judgment dated 18 May 2015 passed by the Division Bench of this Court. The Supreme Court permitted the Bank to commence re-operation of the account of the petitioners in two days.

(3.) Thereafter, a notice under sub-section (2) of Section 13 of the Act was again issued by the respondent-Bank on 8 August 2016. Though the order dated 31 December 2014 declaring the account of the petitioners as NPA had been set aside by the Division Bench of this Court, the aforesaid notice dated 8 August 2016 made reference to the order dated 31 December 2014 that declared the account of the petitioners as NPA. The petitioners pointed out this fact to the Bank. Soon thereafter, the Bank issued a fresh notice dated 5 December 2016 under sub-section (2) of Section 13 of the Act this time mentioning 29 April 2015 as the date on which the account of the petitioners was classified as NPA by the Bank.