- (1.) The facts leading to the filing of the present writ petition is, that respondent no.1 is a company incorporated under the Companies Act, 1956 and is engaged in the manufacture and sale of steel. The said company availed credit facilities aggregating Rs.525 lacs from the petitioner's bank. Respondent nos.3 to 6, being Directors in the said company, executed various documents for availing the credit facilities. The credit facilities was in relation to stock, cash credit, term loan, etc. For the aforesaid purposes, respondent nos.2 to 6 executed agreement for loan dated 2nd August, 2007. An agreement for hypothecation of goods and assets was also executed on 2nd August, 2007. The machineries was also placed in favour of the petitioner bank. Respondent nos.3, 4, 5 and 6 also executed deed of guarantee in favour of the petitioner bank. From the documents so executed the land, building, fixed assets have been mortgaged/charged/hypothecated with the petitioner bank for the purpose of availing credit facilities.
(2.) Respondent no.2-company defaulted in the payment of the loan amount and, accordingly, the petitioner initiated recovery proceedings by issuing a demand notice dated 30th May, 2008 under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Thereafter, the petitioner filed Original Application No.50 of 2010 before the Debts Recovery Tribunal, Allahabad for recovery of Rs.9.26 crores together with pendentilite and future interest, which is pending consideration.
(3.) It transpires that the Central Excise department initiated proceedings against the respondent no.2-company for payment of excise duties and, an order imposing a demand of duty along with interest and penalty was issued on 12th March, 2008 against which the respondent no.2-company filed an appeal. Based on the aforesaid demand, the Central Excise department initiated proceedings under Section 142 of the Customs Act, 1962 and under the Attachment of Property of Defaulters for Recovery of Government Dues Rules, 1995 on 10th November, 2009 and that the property of respondent no.2-company has been attached under Section 142 of the Customs Act, 1962 on 16th July, 2010. Based on the said attachment order, the Assistant Commissioner, Central Excise, Allahabad by an order dated 20th July, 2010 intimated the petitioner-bank that in view of Section 11 of the Central Excise Act, 1944 empowering the department to recover government dues, the bank was intimated that the land, plant and machinery and also any property in the name of respondent no.2-company should not be brought/sold/leased/transferred by the petitioner without the permission of the Assistant Commissioner of Central Excise, Division Allahabad. The petitioner, being aggrieved by this restraint order issued by the Assistant Commissioner, Central Excise, Allahabad dated 20th July, 2010, has filed the present writ petition for its quashing.;