CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LTD. Vs. DISTRICT MAGISTRATE CUM DEPUTY COMMISSIONER LUDHIANA

JUDGEMENT

(1.) The petitioner herein, a Non-Banking Financial Company duly incorporated under the Companies Act and authorized to do finance business, has preferred the present writ petition in the nature of certiorari seeking to quash the impugned order dtd. 1/3/2019 (Annexure P-9) passed by respondent No.2, Additional District Magistrate, Ludhiana, rejecting the application under Sec. 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as SARFAESI Act) so moved by the petitioner.

(2.) Briefly stating the facts of the case are that private respondents No. 4 to 8 approached the financial institution namely HDFC Bank for home equity loans amounting to Rs.4,70,00,000.00 and Rs.34,00,000.00 the same were sanctioned and disbursed vide agreements dtd. 2/7/2012 and 5/2/2013 and created equitable mortgage by depositing two title deeds bearing Wasika No.21076 dtd. 28/1/1992 and Wasika No. 21170 dtd. 29/1/1992 in favour of respondent No.7 and 6 respectively. Both the sale deeds were also deposited by the respective respondents with the Financial Institution, which comprises area of 424 square yards each in the entire area of the suit property measuring 848 sq yards comprising in house property No.29/1, The Mall, Ludhiana (i.e. the secured assets) the copies of sale deeds are annexed as (Annexure P-2 and P-3) respectively. Thereafter, the aforesaid loan account of the respective respondents were declared non-performing assets (NPA) and the proceedings under SARFAESI, Act were initiated, the civil suit preferred by the respondent No.5 was dismissed by Civil Court, Ludhiana on 24/5/2018 (Annexure P-12). The Securitization Application No.453/17 was also dismissed by DRT(III), Chandigarh on 9/3/2018 (Annexure P-13). The petitioner moved an application under Sec. 14 of the SARFAESI Act before the District Magistrate, Ludhiana (Annexure P-8A) which was rejected vide impugned order dtd. 1/3/2019 (Annexure P-9) and aggrieved there from the instant petition has been filed.

(3.) We have heard learned counsel for the parties and also perused the record.