Punjab-Haryana High Court
Sapna Enterprises And Another vs Smfg India Credit Co Ltd on 25 September, 2023
CWP No. 21406 of 2023 (O&M) 1
2023:PHHC:125688-DB
IN THE HIGH COURT OF PUNJAB AND HARYANA AT
CHANDIGARH
CWP No. 21406 of 2023(0&M)
Date of Decision:25.09.2023
Sapna Enterprises andamother = = = -- secon Petitioners
Versus
SMPFG India Credit Co. Limited
esses Respondent
CORAM:- HON'BLE MRS.JUSTICE LISA GILL
HON'BLE MRS. JUSTICE RITU TAGORE
Present: Mr. Atul Prataap Dhankhar, Advocate
for the petitioner.
36 2k 3k ie 3
LISA GILL, J(Oral).
1. Prayer in this writ petition is for quashing notice dated
22.07.2023, Annexure P-1, issued by the respondent under Section 13(2) of
the Securitisation and Reconstruction of Financial Assets and Enforcement
of Security Interest Act, 2002 (SARFAESI Act). There is a further prayer for
directing the respondent to upgrade petitioner's account from Non
Performing Asset (NPA) to Standard on the basis of Circular dated
01.07.2015, Annexure P-2, issued by the Reserve Bank of India, on
repayment of arrears of interest and principal besides, deciding
representation dated 16.09.2023, Annexure P-3, submitted by the petitioners
in this regard.
2. Petitioners had secured loan facility in the year 2018 for a sum
of $15,29,020/- while mortgaging property as prescribed in the writ petition.
Account of the petitioner was declared NPA on 12.07.2023 on account of
financial indiscipline. Notice under Section 13(2) of the SARFAESI Act was
served upon the petitioners. Learned counsel for petitioners argued that
entire exercise undertaken by the respondent is violative of applicable
provisions of law. Respondent, it is submitted should be directed to work out
SANJAY KHAN
2023.09.27 13:53
I attest to the accuracy and
integrity of this document
the amount due in terms of Reserve Bank of India circulars and regularize
petitioners account.
3. Having heard learned counsel for petitioners, we do not find
any ground for interference in this writ petition in exercise of jurisdiction
under Article 226 of the Constitution of India. This is so for the reason that
petitioners have an efficacious remedy available to them under the
SARFAESI Act, which is a complete Code in itself. It was open to the
petitioners to file their objections and take necessary action, in case, of any
further action taken by the respondent qua them. It has been held by Hon'ble
the Supreme Court in a number of cases that there should be minimal
interference in such matters where the Act itself provides specific
remedy/ies to the petitioners. It is further to be noticed that respondent is a
Private Non Banking Financial Institution, therefore, no ground for
interference in any case is made out in view of judgment of Hon'ble the
Supreme Court in Phoenix ARC Private Limited vs. Vishwa Bharti
Vidya Mandir and others, 2022 (1) RCR (Civil) 888.
8. Writ petition is accordingly dismissed with liberty to the
petitioners to avail the remedy/ies as available to them in accordance with
law. Needless to say, it is always open for the parties to arrive at any
mutually acceptable settlement. It is clarified that there is no expression of
opinion on the merits of the matter. Pending application/s, if any, stand/s
disposed of accordingly.
( LISA GILL )
JUDGE
(RITU TAGORE)
September 25 , 2023. JUDGE
s.khan
Whether speaking/reasoned : Yes/No.
Whether reportable : Yes/No.
SANJAY KHAN
2023.09.27 13:53
I attest to the accuracy and
integrity of this document
