IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF JULY, 2019 BEFORE THE HON’BLE MR. JUSTICE ALOK ARADHE WRIT PETITION Nos.40553-554/2018 (GM-RES) Between:
1. M/s Entrack Overseas Pvt. Ltd., Having registered office at Door No.213 and 214, 1st Floor, Adcorp Mahendra Arcade, K.R.Rao Road, Mangalore, Pin – 575003 Represented by its Director Mr.Ullal Aditya Nayak.
2. Mr.Ullal Aditya Nayak, S/o late Ullal Sadananda Nayak, Residing at D-31-2638, “Ananda Sudha”, Karangalpady, Mangalore, Pin – 573003.
3. Mrs.Ullal Sudha Nayak, W/o Late Ullal Sadananda Nayak, Residing at D-31-2638, “Ananda Sudha”, Karangalpady, Mangalore, Pin – 573003.
… Petitioners (By Sri. Iyengar S. Varadarajan, Advocate - absent) And:
The Authorized Officer, Vijaya Bank, Founder’s Branch, Vijaya Towers, Light House Hill Road, Mangalore, Karnataka, Pin – 575003.
…Respondent (By Sri.Vignesh Shetty, Advocate for C/R - absent) These Writ Petitions are filed under Articles 226 and 227 of the Constitution of India, praying to in view of what has been stated in the pleadings of the Petitioner Company through their director Sri.Ullal Adithya Nayak, they have established that the notice issued by the Authorised Officer of the Respondent Bank is against RBI directives, Banking Codes and Standards as announced by Banking Codes and Standards Board of India and adopted by Vijaya Bank, Government of India, policies and tenets of SARFAESI Act, violating the system and procedures of banking and prudential norms as announced by RBI and hence the classification of accounts as NPA and the actions initiated by the Authorised Officer and the notice served by the Authorised Officer under Section 13(2) of SARFAESI Act are null and void and deserve to be dismissed and etc.
These Writ Petitions coming on for Orders, this day, the Court made the following:-
ORDER None for the parties.
2. Records perused. In these petitions, the petitioners inter alia have assailed the validity of the Demand Notice dated 03.05.2018 issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as ‘the Act’ for short).
3. These writ petitions are pending before this Court since 2018, in which no interim order has been passed. In any case, the petitioners have the remedy under law, namely, under Section 13(3A) of the Act to file objections against the impugned Show Cause Notice. In case the petitioners have filed objections to the Show Cause Notice, the same shall be adjudicated before proceeding further in the matter.
With the aforesaid directions, the writ petitions are disposed of.
dn/-
Sd/- JUDGE