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: ''(a) A writ in the nature of Mandamus commanding the respondents - (i) to act in accordance with law; (ii) to cancel, rescind and / or set aside the impugned notices under S.13(2) and S.13(4)(a) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 issued by the respondent bank on 29-4-2010 and 30-7-2010 respectively in respect of the properties described in the schedule of the purported notice dated 30-7-2010;â

(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.) INSTEAD of proceeding with the S.13(2) notice dated January 2, 2007 the bank initiated recovery proceedings under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. During pendency of the proceedings the authorised officer of the bank issued a fresh S.13(2) notice dated April 29, 2010. The petitioners submitted an objection dated June 28, 2010. The authorised officer wrote a reply dated July 1, 2010 and then issued the S.13(4) notice dated July 30, 2010.