TaxTMI 
TaxTMI 
2007 (9) TMI 408
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.... and the interim order also was extended until further orders. 3. The Writ Petition is filed for a Writ of Mandamus or any other appropriate writ, order or direction directing the respondents not to dispossess the petitioners from their lands and houses under the guise of taking recourse to Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Ordinance, 2002, in short hereinafter referred to as 'Ordinance' by declaring the action of the respondents in proceeding under the Ordinance which had been repealed as illegal, unconstitutional, arbitrary and opposed to the principles of natural justice and to pass such other suitable orders. 4. It is stated that the 1st petitioner had established the busine....
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.... sell the said property. It is also further stated that, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter in short referred to as 'Act') came into force on 21-6-2002 and according to section 42 of the Act, the Ordinance was repealed and hence any action taken or anything done under the said Ordinance would be deemed to have been done or taken under the corresponding sections of the Act. Rules had also been framed under the Act and according to the rules an Authorised Officer who is of a rank not less than a Chief Manager of a Public Sector Bank or equivalent would be authorised to exercise the rights of a secured creditor. A notice will have to be issued calling upon the b....
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....l the remedies available to them which are provided under the amended Act as they were not available to them under the Ordinance. The action of the respondents in taking possession of the agricultural land and dwelling house of the petitioners under a repealed Ordinance is arbitrary, illegal, unconstitutional and opposed to the principles of natural justice. It is also further stated that the officials of the 1st respondent are visiting the petitioners at their house and are threatening to dispossess them if they do not handover the vacant possession to them. It is further stated that the respondents had stated that under the provisions of the Ordinance they can seek the help of Army personnel to see that the petitioners are thrown out of t....
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....st petitioner was classified as Non Performing Asset as per the guidelines of the Reserve Bank of India. It is further stated that to recover the said loan amount, the Bank initiated proceedings under the provisions of the Act and issued notice dated 23-7-2005 under section 13(2) of the Act demanding the petitioners to repay Rs. 13,31,531 due, with interest within 60 days failing which the Bank will exercise the powers under the Act. In the said notice the Bank had given the particulars of the properties which were charged to the Bank. While sending the said notice, the respondents-Bank used the old format which was printed when the Ordinance was promulgated. Since the petitioners failed to pay the amount due as per the notice under section....
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....tion 13(2) of the Act. By using the word 'Ordinance' in the place of 'Act' in the notice under section 13(2) of the Act, the petitioners were not restrained from making a representation or taking objections under section 13 of the Act and as the petitioners failed to make any representation or objections to the notice under section 13(2) of the Act, the Bank had issued notice under section 13(4) and published the said notice in the newspapers on 6-11-2005 as contemplated in the Act and had taken possession of the properties which are mentioned in the possession notice in accordance with Law. Further, it is stated that the properties which were specified in the notice under section 13(4) of the Act are not the properties which were prohibite....
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....en under the said Ordinance shall be deemed to have been done or taken under the corresponding provision of the Act. As per the Act, the Banks and the Financial Institutions are empowered to sell the secured assets without intervention of the Courts or authorities. Since the loan account of the 1st petitioner was classified as Non Performing Asset, the respondents-Bank had initiated recovery proceedings under the Act and issued notice under section 13(2) of the Act on 23-7-2005, but inadvertently instead of the word 'Ordinance', the word 'Act' was printed and it is only accidental and not intentional. Since the notice under section 13(2) was issued after the amendment in the Act, the petitioners had an opportunity to raise any objection or ....