VIJAY INDUSTRIES Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) THIS is an appeal preferred by the appellant M/s. Vijay Industries & 4 Ors. under Section 17(1) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Securitization Act, 2002 for short hereafter) against the respondents the Authorised Officer Union Bank of India, Regional Office Pandu Nagar, Karpur and the Branch Manager of Union Bank of India, Naini Branch, Allahabad praying to quash the impugned notice dated 8.3.2004, to stay the operation of the impugned notice dated 8.3.2004, to issue direction to the Bank to provide copy of statement of account duly signed by an authorised officer of the Bank, to disclose the reasons before the Hon'ble Tribunal for not approving the proposals of the appellants and to pass such other order as will be deem fit and proper.

(2.) Such notice under Section 13(2) of the Securitization Act, 2002 has no legal basis and is liable to be rejected. Respondent Bank has not submitted any certificate of claim to verify the actual dues of the appellant.

(3.) SENDING notices under the provisions of the Securitization Act, 2002 without legal requirement are illegal, mala fide and arbitrary particularly when the borrower has deposited a considerable amount with the Bank out of the settlement. Such action of the respondent Bank against the appellants is against the principle of natural justice as well as against the guidelines of the Hon'ble Supreme Court. The appellants wanted the copy of statement of Account only to verify the actual dues so that further amount could be deposited. Instead of giving an opportunity to the appellants to make a plan by the letter for payment of balance amount the statement of account was needed. Unfortunately the Bank has been trying to sell the valuable property at a throw away price by adopting legal recourses under the provisions of the Securitization Act, 2002 and the reasons for the same is best known to them.