MORION CHEMICALS LTD Vs. UCO BANK LTD
LAWS(DR)-2007-9-3
DEBTS RECOVERY APPELLATE TRIBUNAL
Decided on September 19,2007

Appellant
VERSUS
Respondents

JUDGEMENT

M.C.Jain, - (1.) THE respondent Nos. 2 to 4 (M/s. Morion Chemicals Ltd., Mr. Jai Bhagwan Bansal and Mr. Sanjay Bansal respectively) in S.A. No. 3/2007 (pen ding before the Tribunal below) have filed this miscellaneous appeal against the order dated 23.5.2007 passed by the Tribunal below dismissing their IA No. 140/2007.
(2.) 1 have heard Mr. Deepak Arora, learned Counsel for the appellants as well as Mr. Rajesh Rattan, learned Counsel for the respondent Bank. The relevant facts may be stated briefly. The appellant No. 1 (M/s. Morion Chemicals Ltd.) is a company incorporated under the Companies Act. Appellant Nos. 2 and 3 (Mr. Bhagwan Bansal and Mr. Sanjay Bansal) are the Directors of the appellant No. 1 company. They are mortgagors also. Certain loan and credit facilities were sanctioned to the appellant No. 1 by the respondent-Bank Mr. Sunil Dutt Bansal, respondent No. 3 herein is also said to be the Director and mortgagor who allegedly committed certain financial irregularities including diversion of funds of the company. Mr. Achal Bansal and Mr. Yogesh Bansal, respondent Nos. 4 and 5 herein respectively were also guarantors/mortgagors for the loan and credit facilities granted to the appellant company. The respondent Bank herein declared the company's account as NPA, allegedly illegally. The respondent Bank issued notice under Section 13(2) of the SRFAESI Act on 19.8.2006 to the concerned persons including the appellants. Possession notice in respect of the mortgaged properties was also issued by the Bank in newspapers dated 29.11.2006 under Section 13(4) of the SRFAESI Act in respect of the two mortgaged properties viz. land and building situated at B-4 and 5, Industrial Focal Point, Dera Bassi. Distt. Mohali (11002 sq. yds.) belonging to the borrower company and SCO No. 44, Sector 30-C, Chandigarh belonging to Mr. Achal Bansal and Mr. Yogesh Bansal, respondent Nos. 4 and 5 respectively. These two respondents namely Mr. Achal Bansal and Mr. Yogesh Bansal filed SA. No. 3/2007 before the Tribunal below objecting to the Bank's proposed action under Section 13(4) of the SRFAESI Act in respect of their property detailed above. Through SA No. 3/2007, they challenged the Bank's action in respect of their mortgaged property i.e. SCO No. 44, Sector 30-C, Chandigarh and prayed that the action be declared as null and void and illegal. They also prayed for restraining the Bank from taking any steps including by way of physical possession, sale etc. of the said property.
(3.) THE appellants herein i.e. M/s. Morion Chemicals Ltd., Mr. Jai Bhagwan Bansal and Mr. Sanjay Bansal did not file any appeal/application before the Tribunal below under Section 17 of the SRFAESI Act within 45 days from the date of publication of notice of possession i.e. 29.11.2006. It appears that against the impugned order dated 23.5.2007, the borrower company/appellant No. 1 filed a C.W.P. No. 7618 of 2007 before the Hon'ble High Court of Punjab & Haryana. THE copy of the final order in the said writ petition which is on record indicates that the writ petition was dismissed.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.