- (1.) The petitioner, in this Civil Writ Petition, seeks quashing of the notice dated 08.12.2009 (Annexure P5) issued by respondent No.4-Bank in purported exercise of its powers under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short, 'the Act'). The petitioner also seeks quashing of the application (Annexure P9) under Section 14 of the Act moved by the Bank before the District Magistrate, Sangrur as well as the notice dated 07.05.2010 (Annexure P10) passed thereupon.
(2.) The admitted facts, in exordium, are that the petitionerCompany availed the Cash Credit Limit facility from respondent No.4-Bank to the extent of Rs.60 lacs followed by another ad hoc limit of Rs.15 lacs and to secure the aforesaid credit facilities, two residential properties have been exclusively mortgaged in favour of respondent No.4- Canara Bank. The petitioner-Company has also secured a Term Loan from the Punjab Financial Corporation (in short, 'the PFC') by way of joint mortgage of a separate property, namely, the factory premises; the land underneath as also the plant and machineries in favour of the PFC and the respondent-Bank. The PFC has the first charge whereas respondent No.4-Bank has the second charge on the properties jointly mortgaged. There are, thus, two sets of mortgaged properties, namely, the two residential houses which are exclusively mortgaged in favour of respondent No.4-Bank, and the other properties viz. the plant and machineries; the factory building and the land underneath jointly mortgaged in favour of the PFC and respondent No.4-Bank.
(3.) Due to the petitioner's failure to discharge its loan liability, its account was classified as Non-Performing Assets (NPA) on 01.07.2005 with the balance outstanding recoverable from the petitioner has now increased from Rs.78 lacs to Rs.169 lacs.;