RABINDER KAUR Vs. PUNJAB NATIONAL BANK AND OTHERS

JUDGEMENT

(1.) This present writ petition has been filed with a prayer to prohibit the respondent from taking over the actual physical possession of sole dwelling house of the petitioner i.e. Flat No. 1206, Aryan Enclave, New Light Society, Sector 51-B, Chandigarh.

(2.) Respondent No.1 in the writ petition is Punjab National Bank, Sector 19-C, Chandigarh; respondent No.2 is Debt Recovery Tribunal-I, Chandigarh; respondent No.3 is Debt Recovery Appellate Tribunal, New Delhi; respondent No.4 is Authorized Officer of Debt Recovery Tribunal-I, Chandigarh; respondent No.5 is the company who borrowed the loan and respondent No.6 is the private party who purchased the flat in e-auction.

(3.) Respondent No.5-a private limited company, took a term loan of Rs. 1.10 crores and availed cash credit limit of Rs. 2.50 crores from respondent No.1. The sister-in-law, daughter and husband of petitioner were Directors in respondent No.5-company. In order to secure cash credit limit and term loan, the petitioner stood as a guarantor and mortgaged her house with the bank. Respondent No.5 defaulted in payment of loan amount. A notice dated 10.04.2015, under Section 13(2) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as 'the SARFAESI Act') was issued by the bank as there was a default in payment of Rs. 3.23 crores. Thereafter, notice dated 02.09.2015 under section 13(4) of SARFAESI Act was issued and possession notice (symbolic) was issued on 17.09.2015.