ASHOK BROTHERS Vs. BANK OF INDIA
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) THE respondent Bank's taking symbolic possession, vide notice dated 27.10.2005 of Bangalore over Plot No. 37, Mathuranagar Co-operative Housing Society Ltd., Khardi Road, Chandan Nagar, Pune-411 014 has aggrieved the applicants/appellants.
(2.) The respondent vide notice dated 24.9.2004 under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SRFAESI Act) called upon the applicants/appellants to pay outstandings of Rs. 47,53,353.87 (being dues under Cash Credit Hypothecation of Stock & Book Debts) failing which the further steps under SRFAESI Act were threatened to be taken. The respondent ultimately took symbolic possession as noted above.
The grounds are that the applicants had replied the notice vide letter dated 7.10.2004 inter alia requesting for keeping the action under SRFAESI Act in abeyance. The Bank thereupon allowed the account to be operated on understanding that securitisation notice stands withdrawal. As such, the account was continuously operated. The respondent Bank also received on 13.6.2005 Rs. 26.24 lacs from Insurance Company (in respect of the fire broke on 8.3.2003) against claim of Rs. 38.76 lacs. The outstandings on the date of possession, therefore, was much less than the sum mentioned under Section 13(2) of SRFAESI Act. The claim is said to have been calculated by levying exorbitant rate of interest. Thus, the action is said to be bad in law.
(3.) VIDE reply in the nature of affidavit of Mr. Gautam Prasad Bose (Exh. 10) the respondent Bank has refuted the applicants' contentions. The account is said to have become N.P.A. w.e.f. 1.4.2004; the applicant/appellant No. 1 allowed to operate the account since the applicants approached for compromise/settlement with rider that the account would be operated with extent of the amount deposited. The receipt of the amount of Insurance Company is admitted. The dismissal of the application is sought for on aforesaid grounds.;
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