IN THE KOLKATA DEBTS RECOVERY TRIBUNAL –III

BEFORE THE HON’BLE PRESIDING OFFICER

42C, Jawaharlal Nehru Road, Jeevan Sudha Building,

8th Floor, Kolkata- 700071

I.A No.______of 2024

S.A. No. 755 of 2024

Mrs Bulbul Deb & Anr

……Applicants

Vs

Indian Bank & Anr

…Defendants

INTERIM APPLICATION

DIPANJOY BHATTACHARYA, advocate

Chamber:-

Bar association room no. 13

BEFORE THE HON’BLE PRESIDING OFFICER

42C, Jawaharlal Nehru Road, jeevan sudha building,

8th floor, Kolkata- 700071

I.A No.______of 2024

S.A. No. 755 of 2024

Mrs Bulbul Deb & Anr

……applicants

Vs

Indian Bank & Anr

……defendants

APPLICATION FOR INTERIM RELIEF AGAINST SALE NOTICE

UNDER SECTION 8(6) OF SARFAESI ACT, 2002

the applicants most respectfully

SHEWETH:
1. This is an application challenging the notice dated January 10,
2025, issued by the respondent bank, purportedly for sale of the alleged
secured asset.
2. The applicant had instituted the above principal application
under the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 challenging the actions taken
by the respondent bank purportedly under the provisions of section 13 (2)
and 13 (4) of the said Act of 2002. The said application has been heard
from time to time and is pending for adjudication. The applicant craves
leave to refer to a copy of the said application at the time of hearing, if
necessary.
3. As it has happened, the account of the applicant has been
wrongly classified as a non performing asset. The respondent bank has
failed to observe the statutory principles and the scheme under which the
financial accommodation was advanced in classifying the account of the
applicant as a non performing asset.
4. On or about August 10, 2017 the applicant had availed of a
financial accommodation from the respondent under the “Stand up India”
working capital scheme. The fact of issuance of the financial
accommodation under the said scheme would be apparent from the loan
sanction letter issued by the respondent itself. A copy of the said loan
sanction letter dated ____ is annexed hereto and marked ‘____’.
5. Therefore, the terms of the loan and its repayment would abide
by the various provisions of the said scheme. It can be observed from a
bare reading of the said scheme that the financial accommodations
advanced therein are advanced as term loans. A copy of the said scheme
is annexed hereto and marked ‘___’.
6. However, at the time of grant of the said financial
accommodation to the applicant, it was granted as a cash credit loan with
a promise and assurance by the respondent that it would, in due course,
be converted into a term loan. The applicant had proceeded to apply as
well as accept the said loan under such terms.
7. Thereafter, despite repeated requests from the applicant, the
respondent failed to convert the said loan account into a term loan. As
such, the advantages and benefits of a term loan remained unavailable to
the applicant.
8. It may also be mentioned that the said scheme is promulgated
essentially for empowerment of women and back ward classes by
advancing certain special benefits on the terms of repayment and
classification of accounts. Such provisions would be apparent from a bare
reading of the said scheme itself.
9. However, the respondent failed to advance such benefits in
repayment terms to the applicant in purportedly classifying the account as
non performing asset.
10. Apart from that, the respondent bank has wrongfully and illegally
proceeded to amalgamate two separate loan accounts of the applicant
lying in two separate branches in issuing the purported notice under
section 13(2) of the said Act of 2002. A plain reading of the said purported
notice under section 13(2) would bear testimony to that. The said notice is
a part of the said principal application.
11. The applicant duly made an objection to the said notice under
section 13(2) under the provisions of section 13 (3A) of the said Act of
2002. The said objection was not dealt with and the respondent
proceeded to assume symbolic possession of the alleged secured asset
purportedly under section 13 (4) on August 14, 2024.
12. All such actions of the respondent are illegal and reeks of
arbitrariness. The applicant has duly raised all such issues in the principal
application and the same are all pending for adjudication.
13. Be that as it may, the applicant has also made due applications
for restructuring of the loan account under the statute. In violation of the
statutory duty, the respondent bank has failed to restructure the loan
accounts of the applicant.
14. It is also pertinent to mention here that the loan account of the
applicant is covered under the CGTMSE scheme. The applicant is a MSME
unit, to which certain additional benefits are available for repayment.
15. In complete non consideration of the benefits available under
such schemes and in utter disregard to the coverage available to the
applicant under the said CGTMSE scheme, the respondent has wrongly
and illegally recalled the entire amount of loan by its purported notice
under section 13(2) of the said Act.
16. During the pendency of the adjudication of all such questions in
the above principal application, the respondent bank has published a
notice for sale of the purported secured asset in a news paper on January
10, 2025. A copy of such notice is annexed hereto and marked ‘____’.
17. By and under such sale notice, a public auction for sale of the
purported secured asset has been fixed on February 14, 2025.
18. It would be apparent that the said sale notice is not issued in
accordance with the statute and the rules framed thereunder. The
respondent has failed to comply with the conditions laid down under the
relevant rules in issuing the said sale notice.
19. The respondent has proceeded the guidelines framed by the
Reserve Bank of India in issuing the said sale notice. The reserve price
fixed for the sale of the purported secured asset is grossly under valued.
20. The description of the sale notice as is provided in the said
publication exceeds the properties upon which the purported security is
created at the time of the grant of the said financial accommodations.
21. The loan accounts in respect of which the purported notice under
section 13(2) is issued are separate and distinct. The purported security
which is alleged to be created is not in respect of the loan account which
has been recalled by the said purported notice under section 13(2).
22. As such, the said purported sale notice is bad and illegal.
23. The sale notice being an action in pursuance of the previous
disputed actions taken by the respondent under the provisions of section
13 of the said Act, cannot be sustained in the eyes of law.
24. In the event, the sale of the purported secured asset is allowed to
be proceeded, the adjudication of the purported notices under sections
13(2) and 13(4) of the said Act, as raised in the principal application, will
be rendered otiose and infructuous.
25. In any case, the interim reliefs sought for in the above principal
application for stay of the notices purportedly issued under sections 13(2)
and 13(4) of the said Act shall be permanently defeated and frustrated.
26. The loss and damage which the applicant stands to suffer in the
event the sale is allowed to go through far exceeds the loss, if any, which
might occur to the respondent in the event of deferment of the same till
disposal of the above principal application.
27. If the sale of the alleged secured asset is allowed to proceed, it
will give rise to multiplicity of proceedings.
28. Your applicant has made out a strong prima facie case in her
favour. The balance of convenience is heavily in favour of the orders
prayed for herein being passed.
29. Unless the orders prayed for herein are passed, your applicant
will suffer irreparable loss, injury and prejudice.
30. This application is made bona fide and for the ends of justice.
In the above facts and
circumstances, your applicant
humbly prays that Your Honour
may most graciously be pleased
to pass the following orders:
i. An order be passed for
setting aside of the sale notice
dated January 10, 2025
 published by the respondent,
appearing as annexure ___
hereof;
ii. An order be passed for
stay of operation of all further
actions in pursuance of the sale
notice dated January 10, 2025
published by the respondent,
appearing as annexure ___
hereof till disposal of this
application;
iii. Such further and/or other
order or orders as may be
deemed fit and proper.

And for this act of kindness, your petitioner, as in duty bound, shall ever
pray.