HOTEL PAYEL Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) The petitioners in this Art. 226 petition dated August 19, 2010 are seeking the following principal relief:

(2.) The petitioners obtained credit facilities upto the limit of Rs. 40 lacs from the Malda branch of the Central Bank of India in 2003. They were in default on the loan. Under the circumstances, the bank classified the account as non-performing asset on April 1, 2006; and its authorised officer issued a notice dated January 2, 2007 under S. 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and a notice dated August 4, 2007 under S. 13(4) of the Act.

(3.) Questioning the actions the petitioners moved W. P. No. 20394(W) of 2007 under Art. 226. By an order dated March 4, 2008 the petition was disposed of setting aside the S. 13(4) notice on the ground that the petitioners' objection under S. 13(3A) had not been considered and disposed of according to law. The bank was given liberty to proceed with the S. 13(2) notice according to law.