Notice under Section 13(2) of the SARFAESI Act which does not give the break-up of principal and interest amount is contrary to the provisions of the Section 13 of the SARFAESI Act, 2002 – M/s Abaj Foods Pvt. Ltd. Vs. The Authorized Officer, Punjab National Bank – Gujarat High Court
February 28, 2023
The Bank initiated proceedings under the provisions of the SARFAESI Act by issuing notice under Section 13(2) of SARFAESI Act. The respondent Bank thereafter withdrew the notice dated 03.04.2018 and issued a fresh notice on 03.01.2022 under Section 13(2) of the SARFAESI Act, however the Bank mentioned the balance outstanding as on date of NPA 31.03.2018 as 14,34,08,824.52/- without giving break up of principal and interest amount outstanding from the respondent Bank. Hon'ble High Court held that there is a good prima facie case in favour of the petitioners as the notice under Section 13(2) of the SARFAESI Act is contrary to the decision of the Division Bench in case of Punjab National Bank Vs. Mithilanchal Industries Pvt. Ltd. Therefore for the purpose of granting interim relief during the pendency of the securitisation application, this petition is allowed and the respondent Bank is restrained from taking any possession of the secured assets of the petitioners pursuant to the notice dated 03.01.2022 issued under Section 13(2) of the SARFAESI Act and the action under Sections 13(4) and 14 of the SARFAESI Act till the final disposal of the Securitisation Application No.436 of 2022 pending before the Debt Recovery Tribunal.
