THE HON'BLE SRI JUSTICE A.RAJASHEKER REDDY
AND
THE HON'BLE Dr. JUSTICE SHAMEEM AKTHER
WRIT PETITION No.7141 of 2021
ORDER: (Per Hon'ble Dr. Justice Shameem Akther)
This Writ Petition, under Article 226 of the Constitution of India,
is filed by the petitioners, seeking the following prayer:
"to declare the inaction of the Respondents 3 herein
declare the impugned notice got issued u/s 13(2) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 vide Ref No DN/RARC/SA/FY19/010 dated 12/06/2019 consequently declare the in action of the Respondent No 4 herein is trying to attempt illegal acts against the petitioners herein without following the due process of law is illegal aribitrary and contrary to the provisions of law by issuing a Writ of Mandamus or any other appropriate order or directions to the Respondents 3 and 4 to furnish the statement of account copy to the petitioners herein and pass such other order or orders..."
2. Heard the learned counsel for the petitioners and perused the record.
3. As seen from the material placed on record, the petitioner No.1 obtained loan for an amount of Rs.37,00,000/- in the year 2007 from the respondent No.1 company. As the petitioner No.1 committed default in repaying the loan amount, his loan account was declared as Non-Performing Asset (NPA) and recovery proceedings were initiated under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the SARFAESI Act'). The respondent No.3 issued demand notice dated 12.06.2019 under Section 13(2) of the SARFAESI Act, to the petitioner No.1 and his mother (guarantor). 2
4. It is pertinent to state that the said notice dated 12.06.2019 issued by the respondent No.3 is only a demand notice. Once the loan account of the petitioner No.1 is declared as NPA, it cannot be said that the respondent No.3 cannot invoke the provisions of SARFAESI Act by issuing notice under Section 13(2). The respondent No.3 rightly followed the procedure contemplated under SARFAESI Act and issued the impugned demand notice. Furthermore, the Hon'ble Supreme Court in Punjab National Bank v. Imperial Gift House1 and in Devi Ispat Ltd. v. SBI2, held that no writ petition is maintainable against issuance of notice under Section 13(2) of SARFAESI Act.
5. In view of the above facts and circumstances of the case and in terms of the judgments of the Hon'ble Supreme Court, we do not see any infirmity in the action initiated by the respondent No.3. No extra ordinary circumstances exist to entertain this writ petition. Therefore, this writ petition is devoid of merits and liable to be dismissed.
6. Accordingly, this Writ Petition is dismissed. No order as to costs.
Miscellaneous petitions, if any, pending in the writ petition, shall stand closed.
____________________ A.RAJASHEKER REDDY, J ____________________ Dr. SHAMEEM AKTHER, J Date: 23rd March, 2021 scs 1 2013(14) SCC 622 2 2014 (5) SCC 762