M/s. Hind Chemicals Industries and Another vs State Bank of India and Another

Sanjay Kishan Kaul, C.J.—The only issue raised by learned counsel for the petitioners before us is that the petitioners are not liable to pay a sum of Rs. 2,03,080/- towards fee of Enforcement Agent(s) as the entire dues were paid pursuant to the notice u/s 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ''the said Act'') and the occasion to issue notice u/s 13(4) of the said Act never arose. Learned counsel for the petitioners relies upon a Division Bench judgment of this Court in case Mohinder Pal Singh and another Vs. State Bank of India and another, wherein it was held that before issuing a notice u/s 13(4) of the said Act an Enforcement Agent is not expected to take any action. Thus, there would be no occasion for payment of such charges prior to issuance of notice u/s 13(4) of the said Act.

In our view the matter is squarely covered by the aforesaid Division Bench judgment of this Court in favour of the petitioners and thus the writ petition is allowed to the extent of portion the charges levied on the petitioner as aforesaid towards Enforcement Agent''s fee. The Rule is made absolute leaving the parties to bear their own costs.