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TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 1801
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....a threat as per their demand notice alleging the account has been classified as NPA. Defendant bank without giving any opportunity to settle down after suffering heavily due to COVID-19 issued demand notice and possession notice on 15.05.2019 and directed the applicants to pay the entire amount of the loan and close the account without giving any opportunity. Defendant on verification of the securities sanctioned a sum above stated, based on the collateral security of the property which is residential in nature. The applicant regularly paid the amount to the bank as per the repayment schedule without any break or hindrance. (ii). Due to the market fluctuation and price rise and due to the pandemic COVID-19 the business became hit and sustained huge loss. But inspite of the situation the applicants have paid several lakhs to the tune of Rs.9.50 lakhs and bank is aware of the same and the loan has been drastically reduced. During the pandemic crisis the applicant is experiencing great uncertainty. However, with such high stakes on the line, entrepreneurs like applicant dealing with "paralysis," and break down and need to do into smaller steps to come out of it and then atten....
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....from the CJM by concealing the real facts. It is submitted that in the possession notice the authorized officer totally suppressed the measurement of the huge building in the schedule of property in a manner unknown to law. GROUNDS a) The action initiated by the defendant is illegal, arbitrary, motivated and suffers with malafide intent and therefore is liable to be set aside. The amount shown as outstanding and interest charged in the present order is exorbitant / unreasonable and against all fundamental norms and rules and steeply on the higher side also the penal interest charged is illegal. NPA as mentioned in the Demand Notice is itself illegal and against the guidelines issued by the RBI as the applicants have made regular and proper payments till such time. There was no default prior to March 2021. Therefore, the action initiated assuming and claiming that the account has become NPA are all illegal and liable to be set aside. Amount mentioned in the Demand Notice dated 18.01.2019 is incorrect. b) The 1st applicant in whose name the property stands was not issued with any Demand Notice and Possession notice as contemplated under sections 13(2)....
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....s and the same is against the R.B.1 Guidelines and the principles of natural Justice, hence the entire action gets vitiates. The Applicant's account is not a doubtful or bad account and the Applicant's account has been deliberately made Inactive by the bank for reasons best known to them and any alleged action on the mistake of the bank is not binding on the Applicant. Various payments made into the loan account have not been duly credited and the demand made is highly excessive and illusive. e) The classification of the applicant account as NPA is contrary to section 2 (o) of the SARFAESI Act. The demand notice had not been served on all the Applicants and on this score alone the entire proceedings under the Act is liable to be set aside. The Authorized signatory of the proceedings under the Act is not duly nominated under the Act and is not competent to initiate proceedings under the Act and in the absence of substantive proof the proceedings initiated are liable to be set aside and the name of the Authorized signatory of the 13(2) notice is conspicuously absent in all the notice and the Authorized signatory is not competent to initiate the proceedings under the Act. The....
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....): The Petitioner submitted that aggrieved with the Chief Judicial Magistrate's (CJM) order, filed SA seeking relief. This Hon'ble Tribunal granted a stay, imposing conditions on me. To continue legal proceedings, I was directed to make payments totaling 50%, divided into two installments. The first installment of Rs. 4 lakhs was mandated to be paid on or before March 31, 2023, while the second installment of the same amount had a deadline of April 28, 2023. Demonstrating diligence and compliance, the applicant fulfilled the conditions set by this Hon'ble Tribunal. The first installment of Rs. 4 lakhs was promptly paid on March 23, 2023, well before the stipulated deadline of March 31, 2023. Similarly, the second installment of the same amount was settled on April 26, 2023, meeting the requirement ahead of the specified date of April 28, 2023. (ii). The petitioner further submit that regrettably, despite the granted stay order by this Hon'ble Tribunal, a disconcerting development has occurred. The respondent herein, in apparent disregard of the tribunal's directives, issued an auction sale notice dated December 7, 2023. This notice specifies a sale date of January 11, 2024, t....
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....9 demanding a sum of Rs. 16,57,511/- (Page Nos. 12 to 15 of Main SA). Thereafter the Bank has also issued Possession Notice on 15.05.2019. I find that the applicants has though admitted that he has received the Demand notice, but he has not filed any chit of paper to show he has filed any objections or representation U/s 13(3-A) of the SARFAESI Act. The Applicants in their pleadings stated that the account could not have been classified as NPA. And there are several irregularities in respect of classification of account as NPA. Further, the applicant contended that the Defendant Bank had issued Possession Notice U/s. 13(4) of SARFAESI Act on 15.05.209 for a sum of Rs. 16,57,511/- (Page No. 16 of Main SA). The Applicant in his averment stated that the Bank has failed to follow the procedure contemplated in the SARFAESI Act. Further, the Applicant in his pleading has alleged that the Bank has failed to affix the Possession Notice on the conspicuous part of the property and not published the same in two leading newspapers and the Chief Judicial Magistrate, Trichy has passed order in Cr. M.P. No. 28857/2022 on 10.02.2023 under Sec 14 of SARFAESI Act and he had failed to verify as....