Jagdish v. Poonawala Fincorp Limited ( Formally Known As Magma Fincorp Finance Ltd.)


 



IN THE HIGH COURT OF PUNJAB AND HARYANA

AT CHANDIGARH Date of decision : November 23, 2023 Jagdish ...... Petitioner

Versus

Poonawala Fincorp Limited (Formally known as Magma Fincorp Finance Ltd.) ...... Respondents CORAM : HON'BLE MRS. JUSTICE LISA GILL HON'BLE MRS. JUSTICE RITU TAGORE *** Present :-Mr. B. S. Beniwal, Advocate for the petitioner.

Mr. Raghav Garg, Advocate for the respondent. *** LISA GILL, J. (ORAL) 1.

Prayer in this petition is for setting aside proceedings under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'SARFAESI Act) initiated against the petitioner by respondent Poonawala Fincorp Limited (Now known as Magma Fincorp Finance Ltd.).

2.

It is submitted that loan of Rs. 35 lacs was availed of by petitioner for expansion of his business on 24.08.2014 from Poonawala Fincorp Limited now known as Magma Fincorp Finance Ltd. It is submitted that petitioner's account was declared Non-Performing Asset (NPA) w.e.f. 01.10.2021 in an illegal and arbitrary manner even though last installment was received on 30.09.2021. Notice dated 20.11.2021 was issued under Section 13 (2) of

SARFAESI Act seeking deposit of Rs.33,65,402/- due as on 19.11.2021 along with interest @15.8% per annum. Notice under Section 13 (4) of SARFAESI Act was issued on 16.06.2022. Learned counsel for petitioner submits that order dated 09.11.2022 was erroneously passed under Section 14 of SARFAESI Act. It is stated that tenure of loan account of the petitioner was w.e.f. 07.09.2014 to 07.12.2030 and that petitioner is ready to deposit the amount due after deduction of incorrect rate of interest and penalty which has been levied by the respondent-Bank. Moreover, respondent, it is asserted, is not entitled to proceed against the petitioner under SARFAESI Act. It is, thus prayed that this writ petition be allowed.

3.

Learned counsel for respondent while raising an objection regarding entertainability of the writ petiton itself, submits that order dated 05.12.2022 passed in this writ petition has also not been complied with by petitioner. All proceedings under SARFAESI Act, it is asserted, have been undertaken in consonance with applicable provisions. Dismissal of writ petition be sought.

4.

At this stage, learned counsel for the petitioner submits that written statement has not been filed on behalf of the respondent, therefore this writ petition should be adjourned. He further submits that calcuation as to how amount of Rs. 12,95,000/- has been sought for regularisation of loan account has not been furnished to petitioner till date. It is contended that respondent has proceeded against the petitioner under SARFAESI Act without even extending the courtesy of giving details/account statement of the petitioner. However, learned counsel for the respondent submits that there is no necessity of filing reply in this writ petition keeping in view the settled position of law and non-compliance of order dated 05.12.2022 by the petitioner and that detail account statement shall be provided to the petitioner within one week.

5.

Heard learned counsel for the parties and perused the file with their assistance.

6.

In the given factual matrix, intervention by this Court in exercise of jurisdiction under Article 226 of Constitution of India is not made out. It is a settled position of law that SARFAESI Act is a complete code in itself wherein remedy(ies) for any grievance on account of proceedings undertaken therein are specifically provided. Intervention by this Court has to be minimal and restricted to extraordinary and exceptional circumstances. Learned counsel for petitioner is unable to point out any extraordinary and exceptional circumstance, which calls for interference. Furthermore, it is to be noticed that petitioner has admittedly not deposited sum of Rs. 12,95,000/- on or before 05.01.2023 in terms of order dated 05.12.2022 passed by this Court. Infact no amount has been deposited by the petitioner till date. Moreover p



   

    

  

     
     

 
  


    

  !

" #















  
$ %  





 !




&


 !

'

( 



        





  !!!

 !

 
 
) * +




!

  






  

 ,-(  



 
,
../
(0 





1 
'
23 4#
',-,+'0,  !
 !


  !

$0


 

,-(
  "
 1 

',-,+'0, 


!


  

 
$5
,-(    !
 !

  !

    



6

!


!
' 
 
$7 

  

 

   

  
!

"1,-(

 

!


 



   


!

"1,-( !
 !
 
   !

        

 
6

    !
 

  !  
 ' 


$0

  
 


',-,+'0, 

1 
 !
 "
 
!




! 
 



!

"1!

"1,-( !
 

 




',-,+'0,   
  
 1

  !

 1

  !

$ 5



(
 
 
"# 

 $   %  &   % %  '  

()(   &

 *!* 

    %&+
,- 

 &

..



 !


 
 
 !



!



   

!
$8 7.

Keeping in view the facts and circumstances as above, this writ petition is dismissed with liberty to the petitioner to avail remedy/remedies available to him in accordance with law.

8.

It is clarified that there is no expression of opinion on the merits of the controversy.

( LISA GILL) JUDGE (RITU TAGORE) JUDGE November 23, 2023 archana Whether speaking/reasoned Yes/No Whether Reportable :

Yes/No