VIDHYA DEVI CHAUHAN Vs. BARODA RAJASTHAN GRAMIN BANK

JUDGEMENT

(1.) - Instant petition has been filed by the petitioners assailing the proceedings initiated against them by the respondent-Bank under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

(2.) The petitioners took cash credit facility for a sum of Rs. 2,50,000/- after creating equitable mortgage in favour of the respondent-Bank but at a later stage when committed default in making payment of regular installments, the respondent-Bank declared their loan account as NPA and served with notice under Section 13(2) of the Act, 2002 on 24/11/2009 and after expiry of the statutory period when the petitioners failed to make any objections pursuant to the notice served, further notice was served upon the petitioners under Section 13(4) of the Act, 2002 obtaining possession of the secured assets on 15/02/2010. It is a matter of record that the symbolic possession pursuant to the notice under Section 13(4) of the Act, 2002, has been taken by the respondents and opportunity was available with the petitioners to clear their outstanding dues and to get their account regularised but the petitioners without availing opportunity approached this Court by filing instant petition and to see their bona fides, initially orders were passed by the Court on 04/05/2010 restraining the respondent-Bank from auctioning the property/secured assets mortgaged with the respondent-Bank till further orders provided the petitioners deposit Rs. 25,000/- against the existing outstanding dues.

(3.) Counsel for petitioner submits that the procedure which the respondents have adopted in issuing notices under Section 13(2) and 13(4) of the Act, 2002, is in clear violation of the Scheme of the Act, 2002 and the due drawn statement of accounts was never made available to the petitioners in absence whereof, the proceedings initiated itself stand vitiated.