JMV POLYMER LIMITED Vs. PANJAB NATIONAL BANK

JUDGEMENT

(1.) The petitioners seek quashing of notices issued by the respondent Bank under sec. 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The petitioners rely on a Circular of the Reserve Bank of India dtd. 5/5/2021 issued to all Commercial Banks and Non-Banking Financial Companies for restructuring of loans during the Covid 19 Pandemic. The petitioners, through learned counsel, also rely on several communications between the petitioners and the Bank by which the petitioners' loan was proposed to be restructured pursuant to an invocation under the RBI Circular and steps taken by the Bank in connection thereto. Counsel places sec. 13(2) of the 2002 Act and submits that the Bank could not have published the demand notices in the newspapers naming the petitioners.

(2.) Learned counsel appearing for the respondent Punjab National Bank submits that restructuring of a loan cannot be claimed as a matter of right and that the petitioners' account was declared as a NPA on 23/3/2021. Counsel relies on a communication from the Bank dtd. 4/2/2022 by which the restructuring proposal was dropped by the Bank. Counsel further relies on Rule 3 of The Security Interest (Enforcement) Rules, 2002 to submit that the Bank is entitled to publish the content of the demand notice in newspapers under the said Rule.

(3.) The dispute in the present matter relates to three successive notices issued by the Bank to the petitioner under sec. 13(2) of the 2002 Act and publishing of the demand notices in connection with the petitioners' loan in newspapers. It must first be clarified that the respondent Bank has not taken the point of maintainability of the writ petition. Parties appear to be ad idem that the controversy has not ripened to the stage where an application may be taken out under sec. 17(1) of the 2002 Act before the Debt Recovery Tribunal. Regardless of the position taken on behalf of the parties, this Court is also of the view that the relief in the writ petition relates to the petitioners claim vis-a-vis the restructuring of the petitioners' loan by the Bank and the timing of the impugned notices.