SATYANARAYAN RATHI S/O LATE RATANLAL RATHI & OTHERS Vs. STATE BANK OF INDIA, SME INDUSTRIAL FINANCE BRANCH

JUDGEMENT

(1.) By this writ petition under Article 227 of the Constitution of India, 1950, the petitioners are challenging order dated 08.03.2018 (Annexure P/1) passed by the Debts Recovery Appellate Tribunal, Allahabad in Appeal No.77/2016 by which the learned Appellate Tribunal set aside order dated 10.03.2016 (Annexure P/2) passed by the Presiding Officer, Debts Recovery Tribunal, Jabalpur, whereby Securitization Application No.87/2013 was allowed, by allowing the appeal of the respondent State Bank of India filed under Section 18 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (herein after referred to as the SARFAESI Act, 2002).

(2.) The petitioners are guarantors of various loan and credit facilities sanctioned by the respondent Bank. The respondent Bank had sanctioned various credit facilities to M/s. Utkarsh Industries Private Limited Company registered under the provisions of Indian Companies Act, 1956. In order to secure the said loans, equitable mortgage was created over immovable properties belonging to the petitioners. Since the repayment of loan was not made in terms of the loan agreement, the account of the petitioner (s) was classified as Non Performing Asset (NPA) in terms of Reserve Bank of India's directives and the proceedings under the SARFAESI Act, 2002 were initiated. The demand notice under Section 13 (2) of the SARFAESI Act, 2002 was issued on 17.12012 demanding a sum of Rs.30, 46, 29, 280/- outstanding as on 30.11.201 The borrowers did not pay the loan in pursuance of the demand notice and their request for rescheduling the loan did not find favour of the respondent Bank. As they did not comply with the said demand notices, after taking symbolic possession of the respective assets / properties, physical possession of some of the properties under order dated 106.2013 passed by the District Magistrate, Sehore and under order dated 23.07.2014 passed by the District Magistrate, Indore under Section 14 of the SARFAESI Act, 2002 was also taken.

(3.) In notice dated 17.12.2012 (Annexure P/6), details of the mortgaged properties (Serial No.i to xi) have been categorically given. The petitioners have received notice under Section 13 (2) of the SARFAESI Act, 2002. A corrigendum dated 22.02.2013 (Annexure P/16) to notice dated 17.12.2012 was restricted only to Plot No.27, 28, 30, 78, 79, 159 of Gokul Nagar, Indore owned by Smt. Jaishree Rathi w/o Dwarka Das Rathi, Satyanarayan Rathi s/o Late Ratanlal Rathi, Saurabh Somani s/o Radheshyam Somani, Sarveshwar Rathi s/o Ratanlal Rathi, Dwarkadas Rathi s/o Ratanlal Rathi, Smt. Surajkanta Rathi w/o Sarveshwar Rathi respectively which were mortgaged with the respondent Bank as collateral security for the loan granted in favour of M/s. Utkarsh Industries Private Limited. Due to change in the size and re-location of the properties situated at Gokul Nagar, Indore, corrigendum was issued on 22.02.201