Perfect Foundation & Construction Company Vs Saraswat Co-operative Bank Ltd (DRAT Mumbai)
DRAT Allahabad held that initiation of proceeding under SARFAESI Act for the same debt due after rejection of claim under Co-operative Societies Act is not justifiable. Accordingly, the present appeal is allowed.
Facts- This appeal is filed under section 18 of the SARFAESI Act, 2002. The main ground taken by the Appellants in the TSA is that the very initiation of proceedings under the SARFAESI Act, issuance of Demand Notice followed by other measures are clearly barred under the law of limitation. Respondents filed Recovery Application in RA No.3441/2004 before Learned Assistant Registrar under Section 101 of the Maharashtra Co-operative Societies Act, 1960 for recovery of a sum of 83,36,854.66p against the Applicants in TSA, for the alleged loan facility granted by the Respondents. The Learned Assistant Registrar rejected the claim of the Respondents vide its order dated 21.02.2007 stating that Loan Demand Application was dated 18.10.1999 and the Loan Sanctioned Letter was dated 08.06.1999 and doubted the very loan transaction. Respondents initiated proceedings before the Divisional Joint Registrar against the order passed by the Assistant Registrar in Revision Petition No.193/2007, which had been dismissed for non-prosecution. Other ground is that when competent Forum had rejected the claim on the basis of loan transaction, for the same loan transaction, proceedings under SARFAESI Act, cannot be initiated. Demand Notice has no details about the classification of loan account as NPA and the mandatory provisions of SARFAESI Act had not been complied with.
