TaxTMI 
TaxTMI 
2006 (10) TMI 235
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....e in brief is as follows : "The respondent/applicant, at the request of the petitioners/respondents, had advanced loan to the tune of Rs. 12,92,000 to them. The petitioners/borrowers have executed various documents in favour of the respondent/applicant and also had created equitable mortgage by way of depositing title deeds of the immovable property mentioned in the schedule. The petitioners/borrowers have failed to repay the amount due to the respondent/applicant in spite of repeated request and demands and, hence, the respondent/applicant issued notice to the borrowers under section 13(2) of the Act on 17-5-2005, demanding the repayment of the amount due to him within a period of 60 days from the date of notice. In spite of notice, the p....
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....he decisions of our Supreme Court in Mardia Chemicals Ltd. v. Union of India 51 SCL 513 would submit that if a reply notice is given by the borrower for the statutory notice issued by the bank, the bank is duty bound to pass an order on the reply given by the borrower. 7. A perusal of the decision (supra), paragraphs 45, 46 and 48 would read as follows : "45. In the background we have indicated above, we may consider as to what forums or remedies are available to the borrower to ventilate his grievance. The purpose of serving a notice upon the borrower under sub-section (2) of section 13 of the Act is, that a reply may be submitted by the borrower explaining the reasons as to why measures may or may not be taken under sub-section (4) of s....
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....we must make it clear unequivocally that communication of the reasons not accepting the objections taken by the secured borrower may not be taken to give an occasion to resort to such proceedings which are not permissible under the provisions of the Act. But communication of reasons not to accept the objections of the borrower, would certainly be for the purpose of his knowledge which would be a step forward towards his right to know as to why his objections have not been accepted by the secured creditor who intends to resort to harsh steps of taking over the management/business of viz., secured assets without intervention of the Court. Such a person in respect of whom steps under section 13(4) of the Act are likely to be taken cannot be de....