THE STATE BANK OF INDIA THROUGH THE DEPUTY GENERAL MANAGER/AUTHORISED OFFICER Vs. M/S. PUMEA COLD STORAGE AND ANR.

JUDGEMENT

(1.) THIS Appeal under Clause 10 of the Letters Patent is preferred by the respondent State Bank of India (hereinafter referred to as "the Bank") against the order dated 27th August, 2012 made by the learned single Judge in C.W.J.C. No. 8746 of 2012. The respondent M/s. Purnea Cold Storage (hereinafter referred to as "the Petitioner/writ Petitioner"), a proprietary firm, approached this Court through its proprietor Amar Nath Tiwari under Article 226 of the Constitution in above C.W.J.C. No. 8746 of 2012.

(2.) WITH the financial assistance of the State Bank of India, the predecessor of the petitioner had set -up a cold storage and ice factory as early as in 1972. In 1992, the credit facility was enhanced. Over the years, the petitioner claims to have repaid the original and the loan received in 1992. The petitioner availed of further financial assistance for expansion of his business in 1998. In 2005, a huge loan was borrowed by the petitioner for modernization of the plant and machinery. In 2008, the Bank advanced the credit facility to the extent of Rs. 4,94,40,000.00. The petitioner offered certain land in security. It is not in dispute that the petitioner is a debtor in default. A huge sum is outstanding against the petitioner. Ultimately, on 20th December, 2009, the petitioner was classified as NPA (Non -Performing Asset).

(3.) WE may note here that feeling aggrieved by the notice of demand dated 18th August, 2010 issued by the Bank under Section 13(2) of the Act of 2002, the petitioner approached this Court under Article 226 of the Constitution in C.W.J.C. No. 15909 of 2010. The said petition came to be dismissed (Coram : R.K. Datta, J.) on 16th November, 2010. The Bank proceeded further under Section 13 of the Act of 2002 to give notice for public auction of the secured assets. Feeling aggrieved, the petitioner again approached this Court under Article 226 of the Constitution in C.W.J.C. No. 3581 of 2011. The said petition was permitted to be withdrawn (Coram : S.N. Hussain, J.) on 25th February, 2011 with liberty to the petitioner to pursue the remedy available under the law; Pursuant to the said order, the petitioner approached the Tribunal under Section 17 of the Act of 2002 in S.A. No. 81 of 2011. The said Application was disposed of by the Tribunal on 18th January, 2012 with a direction to the petitioner to file representation against the notice issued under Section 13(2) of the Act of 2002. Pursuant to the said direction, the petitioner lodged its objections against the notice under Section 13(2) of the Act as envisaged by Section 13(3 -A) of the Act of 2002. The said objections were considered by the Bank and were rejected on 18th February, 2012.