- (1.) HEARD the learned counsel for the parties.
(2.) ON account of default of payment of dues, the respondents have proceeded for the recovery of the dues and served notice under Sub-section (2) of Section 13 of the securitisation and Reconstruction of Financial Assets and Enforcement of the Security interest Act, 2002 (for short the Act ). The submission is that the respondents are proceeding ahead to recover the dues by service of the impugned notice on unfounded grounds.
(3.) PROVISIONS contained in sub-section (3a) of Section 13 of the Act provides that in case borrower makes any representation or raises any objection, the secured creditor shall consider such representation or objection and inform the decision taken by it. For convenience, Section 13 (1) (2) (3) and (3a) of the Act are reproduced as under: "13. Enforcement of security interest.- (1) Notwithstanding anything contained in section 69 or section 69a of the Transfer of property Act, 1882 (4 of 1882), any security interest created in favour of any secured creditor may be enforced, without the intervention of the court or tribunal, by such creditor in accordance with the provisions of this Act. (2) Where any borrower, who is under a liability to a secured creditor under a security agreement, makes any default in repayment of secured debt or any instalment thereof, and his account in respect of such debt is classified by the secured creditor as non-performing asset, then, the secured creditor may require the borrower by notice in writing to discharge in full his liabilities to the secured creditor within sixty days from the date of notice failing which the secured creditor shall be entitled to exercise all or any of the rights under sub-section (4 ). (3) The notice referred to in sub-section (2) shall give details of the amount payable by the borrower and the secured assets intended to be enforced by the secured creditor in the event of non-payment of secured debts by the borrower. (3a) If, on receipt of the notice under subsection (2), the borrower makes any representation or raises any objection, the secured creditor shall consider such representation or objection and if the secured creditor comes to the conclusion that such representation or objection is not acceptable or tenable, he shall communicate within one week of receipt of such representation or objection the reasons for non-acceptance of the representation or objection to the borrower. Provided that the reasons so communicated or the likely action of the secured creditor at the stage of communication of reasons shall not confer any right upon the borrower to prefer an application to the debts Recovery Tribunal under section 17 or the Court of District Judge under section 17a. ";