Madhya Pradesh High Court: This petition was filed before a 2-Judge Bench comprising of S.C. Sharma and Virender Singh, JJ., against a judgment passed in appeal by the Debts Recovery Appellate Tribunal, Allahabad.
Facts of the case were that petitioner took a loan and after non-payment of interest, the account was declared to be a non-performing asset. The details referred established that there was an outstanding balance continuously in excess of the sanctioned limit or drawing limit from the month of December, 2008 to February, 2009. Thus, petitioner’s property was kept in possession of Bank symbolically under Section 13(4) of the SARFAESI Act, 2002. Court was of the opinion that the account of the petitioner was rightly declared as NPA. While going through the process of auction, Court found no illegality on part of the Bank while recovering the dues from the mortgaged property.
High Court referred the case of Central Bank of India v. C.L. Vimla, 2016(1) MPLJ 101 and in light of the same, found no reason to interfere with the auction process conducted by the Bank, therefore, this writ petition was dismissed. [Mayunk Industries v. Union Bank of India, 2019 SCC OnLine MP 9, dated 03-01-2019]