BANK OF BARODA Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) Heard Mr. P.A.S. Pati, learned counsel appearing for the petitioner and learned A.C. to Sr.S.C.-I. In this writ application the petitioner has prayed for a direction upon the respondent no.2 to show-cause as to why the application preferred by the petitioner under Sec. 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 has been kept pending. Further direction has been sought for on the respondent no.2 to pass a final order upon the pending application in terms of Sec. 14 of the Securitisation Act.

(2.) It has been submitted by learned counsel for the petitioner that the petitioner had filed the application on 23/11/2020 but without considering Sec. 14 of the SARFAESI Act, the respondent no.2 has kept the matter pending for years together. Learned counsel has referred to the case of Balkrishna Rama Tarle Dead through Legal Representatives and Anr. Vrs. Phoenix ARC Private Limited and Ors. reported in (2023) 1 SCC 662 while submitting that the respondent no.2 should have immediately acted upon the application preferred by the petitioner in terms of Sec. 14 of the SARFAESI Act.

(3.) I have heard also learned A.C. to Sr.S.C.-I. The factual aspects reveal that Ms Assay Ceramics and Chemicals Pvt. Ltd. which is an incorporated company, had availed loan from the petitioner bank by creation of equitable mortgage with respect to a land situated at Adityapur measuring an area of 45,000- sq.ft. acquired through lease deed no.4547 dtd. 13/10/2006. The account could not be maintained by the borrower, which resulted in it becoming NPA and consequently a demand notice under Sec. 13(2) of the SARFAESI Act was issued to the borrowers and the guarantors.