M/S KASH Vs. THE J&AMP

JUDGEMENT

(1.) In this petition filed under Article 227 of the Constitution of India read with Section 104 of the Constitution of Jammu and Kashmir and Article 226 of the Constitution of India read with Section 103 of the Constitution of, Jammu and Kashmir, the petitioner-firm has assailed the order dated 13th November, 2017 of the learned Principal District Judge, Srinagar, vide which the learned Principal District Judge, Srinagar has dismissed the application for condonation of delay, filed along with the application under Section 17 read with Section 17-A of the Securitization and re-construction of Financial Assets and Enforcement of Security Interest Act, 2002 (in brevity, the SARFAESI Act).

(2.) The Facts as these emerge from the study of the petition of the petitioner are that the petitioner after following due procedure and process, was awarded two separate and different contracts by the respondent No. 3-Food Corporation of India (in short, the FCI) for construction of two godowns under the Private Entrepreneur Guarantee Scheme, 2008 (PEG Scheme), one with the capacity of 20, 000 MTs and the other with a capacity of 15, 000 MTs). The PEC Scheme, inter alia, provided that the godown shall be taken over by the FCI on lease for a fixed period of ten years the Scheme and Policy of Government of India also provided for 33%, entitlement of the cost construction of godown under the PEG Scheme, 2008 for the projects to be undertaken in the State of Jammu and Kashmir. The petitioner-firm applied for an institutional credit facility under the PEG Scheme from respondent No. 1, the Jammu and Kashmir Bank, for the purpose of the construction of the godown's to be taken over by the FCI under the PEG Scheme. The account of the applicant firm was classified as non-performing asset (NPA). The respondents-Bank issued a notice to the petitioner firm under Section 13(2) of the SARFASIE Act, the relevant excerpts of which are as under:-

(3.) This followed by a possession notice dated 19.06.2017 issued in Section 13(4) of the SARFAESI Act, the auction notice dated 12.08.2O17 and the sale notice promulgated on 11.08.2017. Subsequently on 06.10.2017, the Bank issued another Auction Notice bearing No. JKB/IAPM/SRFS/2017 in respect of two properties, more specifically detailed as Property-A and Property-B in the said notice.