Ravelli Anil Kumar And 2 Others vs The Ge Money Financial Services ...
2021 Latest Caselaw 925 Tel

          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).

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

2013(14) SCC 622

2014 (5) SCC 762