ANANDI PRASAD Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, in the present case, is a borrower who having availed financial assistance from the Syndicate Bank (respondent no. 3) failed to make good the account as a result whereof his account was declared a Non-Performing Asset (in short the "NPA"). The respondent no. '3' thereafter initiated action under the Securitization and Reconstruction of Financial Assets and Investment of Security Interest Act, 2002 (hereinafter referred to as the "SARFAESI Act, 2002") by serving demand notice dtd. 20/10/2008 under Sec. 13(2) of the SARFAESI Act, 2002 for the outstanding liability of Rs.10,93,105.00 as on 15/9/2008.

(2.) The petitioner filed an objection to the notice under Sec. 13(2), however, upon consideration, the objection of the petitioner was rejected in terms of Sec. 13(3A) of the SARFAESI Act, 2002 and action was taken for realization of the amount by serving notice under Sec. 13(4) of the Act, whereunder the Bank took possession of the secured asset, i.e., the land and building in question.

(3.) The parties however settled the dispute in the Lok Adalat held on 31/10/2009. A copy of the award in terms of the compromise is available on the record as Annexure - '9' to the writ application. It is evident from the award that the parties agreed to settle the dispute on payment of Rs.12.00 Lakhs latest by 31/1/2010. As a consequence of failure to abide by the schedule fixed for payment, it was also agreed that the petitioner shall pay a sum of Rs.13,05,287.00 with penal interest thereon at the compounding rate together with other charges and costs.