- (1.) Against the possession notice dated 2.3.2015 issued under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the Act), the petitioner has filed the present writ petition.
(2.) The petitioner contends that he had taken a loan and committed a default as a result of which a notice under Section 13(2) was issued to which the petitioner responded and paid the defaulted amount in spite of which the respondent bank has issued the notice under Section 13(4) of the Act. Sri S.Tiwari, learned counsel for the respondent bank was directed to receive instructions who has informed that as on date there is no defaulted amount to be paid by the petitioner and that the entire defaulted amount has already been cleared by the petitioner. Section 13(2) of the Act provides that if a borrower makes a default in the repayment of the secured debt, the secured creditor can classified the debt of the borrower as a non performing asset. The secured creditor may require the borrower by notice in writing to discharge in full his liabilities. Non performing asset has been defined under Section 2(o). For facility the same has extracted hereunder: "2(o) "non-performing asset" means an asset or account of a borrower, which has been classified by a bank or financial institution as sub-standard, [doubtful or loss asset,-- (a) in case such bank or financial institution is administered or regulated by any authority or body established, constituted or appointed by any law for the time being in force, in accordance with the directions or guidelines relating to assets classifications issued by such authority or body; (b) in any other case, in accordance with the directions or guidelines relating to assets classifications issued by the Reserve Bank;"
(3.) From a perusal of the aforesaid, it is clear that the non performing asset is required to be declared in accordance with the directions or guidelines relating to assets classification issued by the Reserve Bank. The Reserve Bank of India has issued a master circular known as "Master Circular-Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances", which was revised on 1.7.2014.;