JAI MATA AGRO INDUSTRIES REPRESENTED BY ITS PARTNER ASHOK KUMAR BHARADWAJ Vs. GOVERNOR RESERVE BANK OF INDIA

JUDGEMENT

(1.) This Writ Petition is filed seeking to withdraw the sale notice bearing Ref.UVARCL/2017-18/JMAI/06128 dated 23.6.2017.

(2.) Brief facts of the case of the petitioner are as follows:-

(3.) The second respondent has filed a counter and taken a preliminary objection on maintainability of the Writ Petition. The second respondent has contended that since alternative remedy is available in the Statute under Section 17 or under Section 18 before the Debt Recovery Tribunal or Debt Recovery Appellate Tribunal respectively, this Writ Petition should be dismissed in limine. Apart from the above legal defence, the second respondent also contended that the petitioners, who availed cash credit and term loan facility in the year 2007, had failed to repay the principal and interest, the loan account had become 'NPA' on 30.11.2008 warranting issuance of demand notice under Section 13(2) of the SARFAESI Act on 17.12.2009 directing the petitioners to pay a sum of Rs.3,11,22,124/- towards loan liability as on 15.12.2009. Despite receiving the notice, the petitioners failed to repay the outstanding loan within 60 days and therefore, possession notice was issued on 17.02010 and symbolic possession of the secured property was also taken. Thereafter, the second respondent filed O.A.No.13 of 2010 under Section 19(1) of the RDDB & FI Act, 1994 before the Debt Recovery Tribunal, Coimbatore for recovery of outstanding loan amount. Pending O.A., the petitioners and the second respondent entered into a compromise and crystalized the dues as on 30.06.2011 as Rs.3,71,46,765/- together with interest at the rate of 14.25% p.a with monthly rests payable in 65 monthly instalments commencing from January 2012. It is also contended by the second respondent that as per the above compromise, the petitioners were directed to pay Rs.5,00,000/- per month from January to September 2012 and Rs.7,00,000/- per month from October 2012 to March 2013 and thereafter, Rs.9,00,000/- per month from April 2013 to November 2016 and the last instalment of Rs.11,51,573/- in the month of December 2016. With the above terms and conditions, consent decree was passed in O.A.No.13 of 2010 on 10.10.2011 by the Debt Recovery Tribunal, Coimbatore. However, since the petitioner company has not followed the commitments made before the Debt Recovery Tribunal, Coimbatore, sale notice was issued on 28.12.2013, which was deferred, pursuant to One Time Settlement proposal submitted by the petitioners thereby undertaking to repay the loan amount through the third respondent. Thereafter, the second respondent assigned the debt, in terms of Section 5 of the SARFAESI Act, in favour of the third respondent and accordingly, executed an Assignment Deed on 14.02014, to which the petitioner firm is also a party. Only thereafter, the third respondent by the present impugned order dated 206.2017, issued sale notice. Hence, they stated that the Writ Petition is devoid of merits and prayed for dismissal of the same.