Parekh Automotives Pvt Ltd & Anr. v. Apna Sahakari Bank Ltd & Anr.

…Appellant

…Respondent

Case No: Appeal on Dairy No.1584/2023

Date of Judgement: 01/09/2023

Judges:

Mr Justice Ashok Menon, Chairperson

For Appellant: Mr. Ayush Kotari, along with Mr. Sailesh Kumar Rai, Advocate.

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Facts:

Arguments by the Appellants:

Arguments by the Respondent Bank:

Despite replying to the Section 13(2) notice seeking time to pay, the appellants have not made any payments. The outstanding dues have now mounted to approximately Rs. 12,31,00,000/-. Four flats have been provided as security assets, and the bank intends to take possession of these properties. There is no material to show that the appellants are under financial strain. The appellants have not made out any prima facie case or arguable case against the SARFAESI measures initiated by the bank.

Sections and Laws Referred:

Rules under the SARFAESI Act (specific rule not mentioned, but relating to the requirement of specifying the name and designation of the authorized officer for taking possession of secured assets).

Cases Cited:

Supreme Court decision regarding the requirement of depositing 50% of the amount demanded in the Section 13(2) notice if the SARFAESI measures under Sections 13(2) and 13(4) are challenged (specific case name not mentioned).