BHANU PROPERTIES LTD. Vs. RESERVE BANK OF INDIA

JUDGEMENT

(1.) The petitioners have preferred a two-pronged challenge in the present writ petition - the classification of the petitioners' account as Non Performing Asset (NPA) on June 30, 2023 and the Notice under Sec. 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 dated September 11, 2023.

(2.) Learned senior counsel appearing for the petitioners contends that the interim order dated December 6, 2023 passed in the writ petition has not been challenged by the respondent-Bank. Hence, the findings in the same have attained finality. In the absence of any change of circumstances thereafter, it is argued that there is no reason why the said order should not be maintained.

(3.) Secondly, learned senior counsel assails the classification of the petitioners' account as NPA. It is argued that the Statement of Accounts shows that the limit of the Cash Credit Facility was Rs.7.5Cr. The credits availed of by the petitioners never exceeded the said limit. Hence, there was no occasion for the account to be classified as NPA.