STATE BANK OF INDIA Vs. VEE ESS JEWELLERS PVT. LTD.

JUDGEMENT

(1.) TWO securitization applications bearing Nos. 40/2010 titled as VEE ESS Jewellers (Pvt.) Ltd. vs. State Bank of India and 41/2010 titled as M/s Ashoka Woolen Mills vs. State Bank of India have been disposed of by a common order dated 30.5.2011 by DRT -II, Delhi. Two separate appeals (Nos. 311/2011 and 312/2011) are directed against this common order.

(2.) ON 21.12.2006, credit limit was enhanced to Rs. 35 crores on request made by the respondent. Limit was further enhanced to Rs. 45 crores on 26.10.2007. The charges on the commercial property noted above were extended by the respective guarantors/ mortgagors/ owners from time to time for the enhanced loan/ credit facilities. Appellant firm availed the aforesaid facilities but neglected its repayment. The outstanding amount and the liability is even acknowledged in the balance sheet. The bank wrote various letters to the borrower/guarantors/mortgagors to regularize the account and to maintain the financial discipline, but still they failed to do so. On 28.8.2009, notice under section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, the SARFAESI Act) was issued to the borrower, its guarantors and mortgagors. Still, they did not remit the outstanding amount. A sum of Rs. 58,56,05,224/ -, besides interest at contractual rate together with incidental expenses, costs, charges etc. was claimed in the notice under section 13(2) of the SARFAESI Act.

(3.) WHEN this appeal came up for hearing before this Tribunal, the contentions on the above lines, advanced by the counsel for the appellant, were noticed. This Tribunal, while issuing, notice, stayed the impugned order to the extent the possession of the property was handed over. As a result thereof, this property is still in possession of the bank.