KOTAK MAHINDRA BANK LTD. Vs. DISTRICT MAGISTRATE

JUDGEMENT

(1.) Backgrounds of the case This Writ Petition is filed by the petitioner-Bank to quash the order dt.15/12/2021 passed by the District Magistrate, Ludhiana ( respondent No.1) rejecting petitioner's request to pass orders under Sec. 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short 'the SARFAESI Act'] for delivery of possession of a secured asset owned by respondent No.2 and also mortgaged by him to the petitioner-Bank. M/s Oswal Spinning and Weaving Mills limited (for short 'the Company') had been granted certain credit facilities by UCO Bank and other financial institutions. In order to secure the credit facilities sanctioned, the Company created security interest by way of creation of mortgage in favor of the lenders on it's moveable and immoveable assets. The said financial facilities were also secured by the Personal guarantees of respondent No.2 Raj Pal Oswal and 2 others.

(2.) On account of continuous defaults made by the Company/Guarantors/Mortgagors to discharge the dues, the lenders classified the account of the Company as NPA.

(3.) The petitioner Bank acquired the debts/debentures of the lenders under 6 deeds of assignment/transfer dt.6/11/2007 and these assignments were confirmed by the Company and the Guarantors vide Letter of Acceptance dt.26/12/2007.