ALLAHABAD BANK Vs. DISTRICT MAGISTRATE, LUDHIANA

JUDGEMENT

(1.) The present application has been filed on behalf of Respondent No. 1 (District Magistrate, Ludhiana) and Respondent No. 3 Tehsildar (East), Ludhiana, seeking modification of the order dtd. 25/2/2020, which reads as under :-

(2.) In brief, the facts which emerge from the pleadings are that M/s Creative Yarn Private Limited having its Registered Office at K-l, Textile colony , Industrial Area-A Ludhiana availed a Cash Credit facility of Rs.7.00 Crore from Allahabad Bank (now merged with Indian Bank). Mr. Anuj Kapoor executed a guarantee deed dtd. 15/1/2015 in favor of the bank for the aforesaid loan facility availed by the borrower company. He also created an equitable mortgage of Factory land and building built over MC No. B-XII-667 and B-XXIII -2119/A, measuring 1769 Square Yards situated at Textile Colony, Ludhiana Consequent upon declaration of the account as Non Performing Asset, the petitioner bank issued notice dtd. 3/4/2018 under Sec. 13(2) Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "Act, 2002") seeking a recall of Rs.8,20,24,851.00 due as on 2/4/2018.

(3.) An Application under Sec. 14 of the Act, 2002 filed by the bank was allowed by Respondent No. 1 vide order dtd. 15/11/2018 directing Respondent No. 3 to take physical possession and hand it over to the petitioner bank. Since the said order was not being implemented, the petitioner bank had approached this Court by filing the instant petition which was disposed off vide aforesaid order dtd. 25/2/2020.