SMT. ANJANA Vs. BANK OF INDIA

JUDGEMENT

(1.) This intra-court appeal has been filed by the appellant against the order dated 18/09/2017 passed in W. P. No.5917/2017 by which learned Writ Court has held that an action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in brevity "the SARFAESI Act") constitutes an action taken after the stage of Section 13(4) and, therefore, the same would fall within the ambit of Section 17(1) of the SARFAESI Act and dismissed the writ petition as not maintainable with liberty to the appellant to approach the Debts Recovery Tribunal (DRT) under Section 17 of the SARFAESI Act.

(2.) The brief facts of the case are that the appellant is engaged in the business of transportation and she received a loan of Rs. 94,80,000/- from the respondent No.1-Bank of India for the purchase of 8 passenger buses on 21/11/2012. In order to secure the said loan, the petitioner has created surety by way of hypothecation of 8 new Tata double door buses. The loan was liable to be repaid by way of 62 equal monthly installments of Rs. 1,98,120/- w.e.f. 31/10/2014. However, she has failed to make payment of monthly installment, therefore, her account was declared as Non Performing Assets (NPA) w.e.f. 30/06/2015. Demand Notice under Section 13(2) of the Sarfaesi Act were issued on 01/07/2015, 11/07/2015 and 14/07/2015 regarding deposit of entire arrears amount within a period of 60 days, however, these notices were returned back as not claimed by the appellant. Thereafter, the respondent No.1-Bank got published notice in daily news paper-"Dainik Bhaskar" on 27/10/2015 and also intimated the appellant about the proceedings under the Sarfaesi Act but the appellant did not respond to the notice, then respondent No.1-Bank of India approached to the Additional District Magistrate, Ujjain, seeking assistance to take possession of the buses.

(3.) The Additional District Magistrate, Ujjain issued notice to the appellant under Section 14 of the Sarfaesi Act. After taking reply of the appellant, Additional District Magistrate, Ujjain did not find any satisfactory reason for nonpayment of the loan amount and passed the final order under Section 14(A) of the Sarfaesi Act on 22/08/2017 for taking the physical possession of 8 buses.