Hemant Gupta, J. - (1.) THE challenge in the present writ petition is to an order passed by Debts Recovery Appellate Tribunal (for short 'the Appellate Tribunal') on 24.02.2014 whereby an application filed by the petitioners under Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest, Act, 2002 (for short 'the Act') was dismissed by setting aside the order of the Debts Recovery Tribunal -1, Chandigarh (for short 'the Tribunal') dated 14.12.2012.
(2.) THE petitioner, an educational institution, availed credit facilities from the Punjab National Bank (for short 'the Bank') by way of term loan and overdraft facility. The same are as under: - The assertion of the petitioners is that all the payments in the term loans were regular as on 30.09.2011 as the interest stood paid except for the months of August and September, 2011. The petitioners were facing financial crunch, therefore, they approached the Bank with a request dated 22.09.2011 for reduction in the rate of interest on the term loans to charge base rate only. On 31.10.2011, the petitioners were advised to pay overdue amount of Rs. 53.59 lacs in the term loan and Rs. 263.62 lacs in the overdraft account as on 29.10.2011. On 07.12.2011, the petitioners were advised to pay irregular amount of Rs. 3,17,81,000/ - as on 30.09.2011 with further interest w.e.f. 01.10.2011 and to submit concrete plan for regularization of all the accounts. The Bank also informed that due to non -payment of over -dues towards principal and interest of the aforesaid amount, the Bank has been left with no other recourse, but to classify the account as Non Performing Asset (for short 'NPA') as on 30.09.2011 as per the Reserve Bank of India (for short 'RBI') guidelines. The Bank informed the petitioners on 23.01.2012 that time to pay the over -dues has been extended to 10.02.2012 and if the payment is not made, the Bank will be constrained to initiate action under the Act.
(3.) IT was on 11.02.2012, the Bank served a notice under Section 13(2) of the Act informing the petitioners that the account has been classified as NPA as on 30.09.2011 and an amount of Rs. 15,93,00,554/ - including interest up to 30.09.2011 is due and payable. The petitioners were advised to make the payment within 60 days.;