SWAGATIKA IMPEX PVT LTD Vs. UCO BANK

JUDGEMENT

(1.) Petitioner, a registered Private Limited Company under the Companies Act, 1956, purchaser of plot No. 21 B, 22 Aat Sector 'G' and 24/3 at Sector 'D', Industrial Area, J.K. Road, Govindpura, Bhopal being the land and building and plant and machinery thereon measuring 37000 sq. ft. office building, factory shed and 31800 sq. ft. machine and fabrication shop total being 68800 sq. ft. The said plots, having been purchased for Rs.1.30 crores, of which an amount of Rs.60 lakhs were deposited, has raised a grievance vide this writ petition that, despite of his being a bona fide purchaser and being willing to pay the remaining amount, has been subjected to a coercive action by the respondent Nos. 1 and 2 Bank with the deadline having fixed by letter dt. 9.8.2007 that, if the remaining amount is not paid, the amount already paid would be forfeited. The petitioner questions the action in the teeth of the fact that, property in question is not free from encumbrances, as, after purchasing the property, the petitioner was made to understand of the existing charge on the said property, Commercial Tax Department, Government of Madhya Pradesh to the tune of Rs.1,43,15,655/ towards outstanding Commercial Tax.

(2.) The undisputed facts carved out from pleadings and relevant for the present are that, the property in question belonged to Bhopal Transmission Control, a private limited company. The said Company availed credit/loan facilities from the respondent Nos. 1 and 2 Bank against the property in question mortgaged as security.

(3.) In due course of time since Bhopal Transmission Control Company having defaulted to repay the outstanding to the tune of Rs.11,72,67,00/ (Rupees Eleven Crores Seventy Two Lacs Sixty Seven Thousands only), led the Bank to declare the account as N.P.A and took recourse to Section 13 of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereafter referred to as Act of 2002).