CHOLAMANDALAM INVESTMENT Vs. THE ADDITIONAL DISTRICT

JUDGEMENT

(1.) The petitioner before this Court Cholamandalam Investment and Finance Ltd, is a company incorporated under the Companies Act and is a "financial institution" as defined under the provisions Securitization and Reconstruciton of Financial Assets and Enforcement of Security Interest Act , 2002 (hereinafter referred as SARFAESI Act , 2002). The petitioner has filed the present petition being aggrieved by the order dated 06.11.2017.

(2.) The respondent Nos.2 to 8 are borrowers, who have approached the petitioner for grant of loan of Rs.3.35 crore and as the account was declared as non-performing assets, the petitioner taking shelter of the provisions of SARFAESI Act , 2002, issued a demand notice on 30.09.2006 under Section 13(2) of the SARFAESI Act, 2002 calling the respondent Nos.2 to 8 to pay amount of Rs.3.93,52,355/-. Notices were published in the newspaper also and respondent Nos.2 to 8. in spite of receipt of notice, did not repay the amount and in those circumstances on 28.01.2017, the authorized officer of the petitioner took possession of the property mortgaged by the respondents keeping in view the statutory provisions as contained under Section 12 and 13 (4) of the SARFAESI Act , 2002.

(3.) The possession notice was also published in the newspaper i.e. in Times of India on 02.02.2017 and the total dues recoverable from respondent Nos.2 to 8 are to the tune of Rs.4,33,70,402/-. As the amount was not being paid and the account was declared as NPA, an application was preferred under Section 14 of the SARFAESI Act, 2002 for taking actual physical possession of the secured assets and for handing over them to the petitioner as required under the statutory provisions. An affidavit was also submitted by the authorized officer keeping in view Section 14(1)(b) of SARFASEI Act, 2002