INDIAN OVERSEAS BANK Vs. JAGMOHAN KEJRIWAL

JUDGEMENT

(1.) THIS order will dispose of appeals, Appeal No. 239/2012 and Inward No. 382/2012, as a common order is under challenge in both these appeals. Facts have been taken from Appeal No. 239/2012.

(2.) CHALLENGE in both the cases is to an order dated 29.5.2012 passed by DRT -I, Chandigarh. The appellant bank had advanced certain loan facilities to the respondents. The respondents defaulted in repayment and so the appellant bank initiated actions under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, the SARFAESI Act). A demand notice under section 13(4) of the Act was issued on 2.11.2011. On receipt of the notice, the respondents submitted their reply through communication dated 29.12.2011. The respondents pleaded that the land mortgaged was an agricultural land as there was no building or structure built on that piece of the land which had been mortgaged. The respondents also disputed the description of the property which, according to them, was not correct. In support of the plea that the land in question was not a commercial and it is stated that the land was purely an agricultural land used for cultivation of crops. Reference is made to the khasra khatauni obtained from the revenue record to show that the property is described as agricultural property where two types of crops were grown. Plea further was that protection under section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 (for short, the SICA) shall continue to remain and the respondent being one of the guarantors the appellant bank shall not have any right to claim the property of the respondent.

(3.) CONSIDERING the rival submissions made by the parties before it, the Tribunal formulated the following questions which, according to it, required determination: