NEW LAXMI STONE CRUSHER Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) WE dispose of these two writ petitions by this common judgment, as they are based upon similar facts and raise common question of law.

(2.) THE petitioners are the borrowers, having raised term loan/cash credit facility from the respondent Punjab National Bank, from its branch at Damtal of District Kangra. The petitioners defaulted in the payment of the dues towards the respondent bank and for this reason their accounts were classified as "non performing asset" in accordance with the guidelines of the Reserve Bank of India. A recall notice (annexure R1) was issued to the petitioners for the entire outstanding dues together with interest and other charges. By a letter dated November 7, 2003 (annexure R2), guarantee furnished by the petitioners was invoked and the petitioners were asked to pay the due amount with further interest at the agreed rate within 30 days of the receipt of the notice, failing which, the petitioners were put to notice, bank would take such legal steps as may be necessary at the risk and responsibility of the petitioners. The dues were not liquidated and the bank by notice dated December 22, 2003 (annexure P1), called upon the petitioners to pay an amount of Rs. 19,60,531 in CWP No. 120 of 2004 and Rs. 9,00,572.72 in CWP No. 121 of 2004 with further interest at the agreed rate in 60 days from the receipt of the notice. The petitioners were informed that if the due amount is not paid, the bank intends to exercise any or all of the powers provided under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ("Act" for short). The secured assets intended to be enforced by the bank were detailed in the notice.

(3.) CASE of the petitioners is that Section 13 of the Act is being invoked by the respondent bank without giving them a proper hearing.