SHALOM ENTERPRISES Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard Mr. Salvaji Raja Shekar Rao, learned counsel for the petitioner and Mr. Namavarapu Rajeshwara Rao, learned Assistant Solicitor General of India for respondent No.1.

(2.) Having regard to the subject matter of the Writ Petition and the order, which we propose to pass, issuance of formal notice to respondents No.2 and 3 is considered not necessary.

(3.) According to the petitioner, it is a Micro, Small and Medium Enterprise (MSME) engaged in the business of manufacturing import substitute defence related security equipments. Petitioner had availed loan from respondent No.3/Bank to the tune of Rs.1,52,00,000.00. However, the entire loan amount was not released to the petitioner. In the meanwhile, petitioner's business suffered because of the lock down imposed on account of COVID-19 pandemic. Notwithstanding the same, respondent No.3/Bank classified the loan account of the petitioner as a Non Performing Asset (NPA) and initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the SARFAESI Act'). In this connection, notice under Sec. 13(2) of the SARFAESI Act was issued to the petitioner by respondent No.3 on 12/8/2021. It is stated that petitioner had submitted representation. It is apprehended that, without considering the representation of the petitioner, respondent No.3/Bank may proceed further under the SARFAESI Act to the prejudice of the petitioner. Hence, the writ petition.