TANDRA IMPEX PVT. LTD Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) Heard Mr. V.Murali Manohar, learned counsel for the petitioners and Mr. Muddu Vijay, learned counsel for the respondent.

(2.) By filing this writ petition under Article 226 of the Constitution of India, petitioners seek quashing of the decision of the respondent dtd. 31/3/2020 classifying the loan account of the petitioners as Non-Performing Asset (NPA) and further seek quashing of demand notice dtd. 31/7/2020 issued by the respondent under Sec. 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (briefly referred to hereinafter as the 'SARFAESI Act').

(3.) It is stated that first petitioner is a company of which petitioner No.2 is a Director. Petitioner No.1 is a Micro, Small and Medium Enterprise (MSME) carrying on business of trading in stone and granite blocks. Petitioner No.1 had availed cash credit facilities from the respondent in September, 2019. Repayments were made in the form of installments and the last installment was paid on 29/2/2020. However, because of the outbreak of COVID-2019 pandemic and the resultant lock down, petitioner No.1 defaulted in repayment. Consequently, respondent classified the loan account of the petitioners as NPA on 31/3/2020 followed by issuance of the demand notice dtd. 31/7/2020 under Sec. 13(2) of the SARFAESI Act.