ARUN JAGANNATH GEDAM Vs. STATE BANK OF HYDERABAD

JUDGEMENT

(1.) THIS is an appeal under Section 17(1) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short Securitization Act.).

(2.) The appellant-the former employee of the respondent has challenged legality and validity of the notice under Section 13(2) of the Securitization Act, dated 13.10.2003 and 5.11.2003 and notice under Section 13(4) of the Securitization Act, dated 29.7.2004. By the impugned notice under Section 13(2) of Securitization Act, the respondent had called upon the appellant to pay Rs. 4,68,077.42 Ps. being outstanding under term loan. The appellant filed Writ Petition No. 5147/2000 in Hon'ble High Court of Judicature at Bombay against the notice which came to be disposed of (in view of the Apex Court's judgment of Mardia Chemical's case) by Hon'ble Division Bench of the parent High Court, Bench at Nagpur by order dated 30.4.2004, inter alia giving liberty to the appellant to make representation to the Bank against the notice under Section 13(2) of the Securitization Act whereupon the Bank was to appropriately consider and communicate its decision. By letter dated 17.2.2004, the appellant had in the meanwhile called upon the Bank to clarify certain points. Pursuant to the order of Hon'ble High Court, the appellant gave letter dated 11.6.2004 referring to the earlier letter dated 17.2.2004. The Bank failed to give reply to said representation but proceeded to take symbolic possession of the secured asset being Plot No. 13A in survey No. 2D/1 within the Ward No. 6, Mouza Jat Tarodi, Wanjari Nagar, Distt. Nagpur. The appeal is, therefore, filed challenging the legality and validity of the notice and action on following grounds:

(3.) I have heard arguments of learned Counsel representing the rival parties. I have gone through the copies of documents annexed to the Memo of Appeal and the reply.