P. K. Lohra, J. - (1.) Petitioner, a proprietorship firm, availed credit facility of Rs.8,71,000/- from respondent-Bank and executed requisite loan agreement and other documents. It appears that petitioner has failed to repay the requisite instalments, and therefore, its loan account was classified as Non-Performing Asset (NPA) by the respondent-Bank secured creditor on 13th June, 2015. After classifying the loan account of the petitioner-firm as NPA, the secured creditor, i.e., Bank initiated recovery proceedings by resorting to Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, SARFAESI Act) by issuing notice to it under Section 13(2) of the SARFAESI Act on 2nd of July, 2015. In the notice (Annex.1) under Section 13(2) of the SARFAESI Act, total dues against the petitioner-firm were shown as Rs.8,74,194/- inclusive of accrued interest upto 30th June, 2015. Against notice (Annex.1), no representation/objection was submitted by the petitioner-firm within the stipulated period, and therefore, secured creditor took recourse of the measure to recover secured debts under clause (a) of subsection (4) of Section 13 of the SARFAESI Act vide notice (Annex.2). Against notice (Annex.2), petitioner submitted a letter dated 8th September, 2015 (Annex.3) admitting its liability. It is in that background, petitioner has invoked extra-ordinary jurisdiction of this Court under Article 226 of the Constitution of India with following prayers:- 1. Hon'ble Court may be pleased to direct the Respondent Bank not to take illegal action or physical possession under SARFAESI Act 2002 till the expiry of statutory period of appal provided under section 17 of SARFAESI Act. 2. Hon'ble court may be pleased to hold and declare that the Respondent Bank under SARFAESI Act on first instance can only take symbolic possession enabling the aggrieved borrower to seek remedy of appeal/judicial review and Bank should wait reasonably till the adjudication of the matter by DRT. 3. Hon'ble Court may be pleased to direct the Respondent Bank not to misuse the proceedings under SARFAESI Act, 2002 in routine and in casual manner without any just an proper apprehension of danger to public funds. 4. Hon'ble Court may be pleased to direct the Reverse Bank of India to make proper rules and regulations regarding initiating processing under SARFAESI Act, 2002, and regarding symbolic and physical possession as misuse of the proceeding on is bad in law and can ruin the life of citizen of India. 5. Hon'ble court may be pleased to hold and declare that without any just and reasonable apprehension Bank cannot take physical possession of secured assets, taking symbolic possession if can safeguard the interest of the Bank then in first instance only symbolic possession of the secured property should be taken and once exercising the option of symbolic possession without any reasonable apprehension of danger to property Bank should not take physical possession merely to recover money from borrower as a tool. 6. Any other relief which is just and proper in the facts and circumstances of the case in favour of the Petitioner. 7. And for this act of kindness petitioner shall every pray.
(2.) I have heard learned counsel for the petitioner and perused the impugned notices.
(3.) At the outset, it may be observed that precise object of the SARFAESI Act is recovery of debts by non-adjudicatory process. Section 13(2) of the SARFAESI Act deals with liquidation of liability in a case where there is no scope of any dispute regarding liability. Any action initiated by the secured creditor for enforcement of security interest by way of measures refer to in sub-section (4) of Section 13 of the SARFAESI Act is appealable and aggrieved person (including borrower) may make an application along with the prescribed fee to Debt Recovery Tribunal (DRT) having jurisdiction in the matter within 45 days from the date on which such measures had been taken.;