- (1.) THE petitioner has prayed for quashing the notice dated 13th January, 2010 issued by the respondent under Section 13(2) of the Securitization and reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (here in after to be referred as 'SARFAESI Act' or 'the Act') and for quashing the notice dated 31 st May, 2010 issued under Section 13(4) of the SARFAESI Act read with Rules 8 and 9 of the Security Interest (Enforcement) Rules, 2002 and the proceedings subsequent thereto.
(2.) THE petitioner deals in business of sale and services of electronic goods and for carrying on smooth business, the petitioner had approached the Respondent No. 1 Canara Bank on 30th August, 2007 for financial assistance by way of Cash Credit Facility. Canara Bank (TharpaKria Branch) sanctioned cash credit facility up to Rs.50.00 lacs and, accordingly, a current account was opened on 12th September, 2007 in the name of the petitioner. Since then the petitioner had been availing the said facility. THE petitioner was also making re-payment of the loan. According to the petitioner, suddenly a notice dated 13th January, 2010 under Section 13(2) of the SARFAESI Act was served on him, informing the petitioner that his account was declared/classified as Non-performing Asset (for short N.P.A.) on 12th January, 2010. The petitioner was also asked to make payment of Rs. 56,91,642.37 paise together with further interest, failing which the Bank would take action under Section 13(4) of the SARFAESI Act. It has been stated that immediately after receipt of the said notice, the petitioner approached the respondent-Bank and gathered further information and facts and figure. He, thereafter, filed an objection under Section 13(3A) of the SARFAESI Act, requesting the Bank to settle their account under One Time Settlement Scheme. They also stated that they are ready to pay the entire dues, if the interest is waived. The petitioner also took stand that even on the date of the alleged declaration, due in their account was within the limit i.e. Rs. 43,93,479.37 paise and that the account was wrongly declared as N.P.A. without taking into consideration the position of the petitioner's account and contrary to the prescribed rules and guidelines.
(3.) ACCORDING to the petitioner, the said objection was sent by registered post as well as through courier and was duly received by the Bank on 16th February, 2010. However, the Bank without considering and deciding the petitioner's representation/objection, as required under the provision of Section 13(3 A) of the SARFAESI Act, issued possession notice dated 31st May, 2010 (Annexure-5) under the purported provision of Section 13(4) of the SARFAESI Act read with Rules 8 and 9 of the Security Interest (Enforcement) Rules, 2002. The petitioner, on receipt of the impugned notice, filed representation before the respondent-Bank on 19th July, 2010, requesting them to recall the said notice as the same was issued without following the mandatory provision of law, but the respondent-Bank did not pass any order on the petitioner's representation.;