SKYTONE ELECTRICALS (INDIA) LIMITED Vs. CANARA BANK

JUDGEMENT

(1.) Background facts Petitioner No.1 is a company incorporated under the Companies Act, 2013. Certain credit facilities were offered to the petitioner by the Canara Bank (respondents No.1 and 2). The loan account of the petitioner was declared as Non Performing Asset (NPA) on 30/9/2016 by the respondent-Bank, and it issued on 19/1/2017, a notice under Sec. 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "the Act") claiming Rs.26,91,23,862.81 as on 31/12/2016. Though the petitioner filed objections under Sec. 13(3A) of the Act on 23/3/2017 requesting the respondent-Bank for rehabilitation instead of initiating coercive action, the same was not accepted by the respondent-Bank on 7/4/2017.

(2.) It also obtained on 25/10/2017 an order under Sec. 14 of the Act from the District Magistrate, Faridabad to take physical possession of the mortgaged properties.

(3.) The various sale notices A sale notice Annexure P-13 dt.26/6/2018 was issued by the respondent-Bank putting the mortgaged properties to sale for a consolidated reserve price of Rs.27.16 Crores, but no bids were received.