- (1.) The petitioner is an association of the persons, who have purchased units in the proposed shopping complex namely 'Festival City Mall' in the city of Ludhiana, Punjab, whereas some of the persons have entered into an agreement to lease. Such agreement to purchase and agreement to lease were executed pending construction of such shopping complex.
(2.) The builder - respondent No.1 i.e. M/s Aerens Entertainment Pvt. Ltd., after entering into agreement to sell and/or agreement to lease with the members of the petitioner association, entered into financial arrangement with Indian Overseas Bank, Allahabad Bank and Bank of Rajasthan to avail loan of Rs.100 crores. Respondent No.1 defaulting in making the payment of the loan amount and in terms of the agreement, the Allahabad Bank and Indian Overeseas Bank entered into an assignment deed with respondent No.3 on 08.04.2011, whereas a separate assignment deed was entered by ICICI Bank, with whom the Bank of Rajasthan stood merged on 31.03.2011. The assignment of debts by Allahabad Bank and Indian Overseas Bank was with respondent No.3, which is an Asset Reconstruction Company (ARC). Such assignment of debt was in terms of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the Act'), whereas assignment of debt by ICICI Bank in favour of respondent No.2 was with a Company, which is Non Asset Reconstruction Company (Non-ARC) as defined in the Act. It further transpires that on 06.05.2011, respondent No.3, an Asset Reconstruction Company, assigned its debts to respondent No.2, a Non Asset Reconstruction Company, except a nominal amount of Rs.1 lac each i.e. Rs.2 lacs.
(3.) Prior to assignment of debts, a notice under Section 13(2) of the Act was issued by Allahabad Bank on 31.03.2010 followed by a notice under Section 13(4) of the Act on 06.07.2010. The petitioner-association has challenged the notices and also the clause in the agreement dated 06.05.2011, whereby respondent No.3 has retained Rs.2 lacs.;