RAMA STEEL INDUSTRIES Vs. UNION OF INDIA
LAWS(BOM)-2007-9-43
HIGH COURT OF BOMBAY
Decided on September 07,2007

RAMA STEEL INDUSTRIES Appellant
VERSUS
UNION OF INDIA Respondents


Referred Judgements :-

GREATER BOMBAY CO-OP.BANK LTD. V.V. M/S UNITED YARN TEX.PVT.LTD.AND ORS. [REFERRED TO]
TRANSCORE VS. UNION OF INDIA [REFERRED TO]





JUDGEMENT

R. C. Chavan, J. - (1.)The petitioners are the defaulting debtors of respondent No. 2-Bank. The petitioners had mortgaged immovable properties to respondent No. 2-Bank. Respondent No. 2 started proceedings under section 101 of the Maharashtra Co-operative Societies Act, 1960 for recovery of Rs. 47,69,648/ -. On 14-7-2003, during the pendency of these proceedings, respondent No. 2-Bank issued a notice of demand under section 13 (2) of the securitisation and Reconstruction of Financial Assets and Enforcement of security Interest Act, 2002 (for short, hereinafter referred to as "the securitisation Act") - On 18-9-2003, respondent No. 2-Bank took physical possession of the secured assets.
(2.)The petitioners preferred an appeal, which was dismissed by the Debts recovery Tribunal on 4-10-2006. The petitioners appealed to the Debts Recovery appellate Tribunal. During the pendency of the proceedings before the Debts recovery Appellate Tribunal, the Apex Court decided Greater Bombay Co-op. Bank Ltd. vs. M/s United Yam Tex. Pvt. Ltd. and ors. , 2007 (3) Mh. L. J. (SC) 434 = 2007 (5) SCALE 366, and M/s Transcore vs. Union of India and anr. , 2006 (12) SCALE 585. The Debts Recovery Appellate Tribunal, however, dismissed the petitioners' appeal on 20-7-2007 leaving to the petitioners liberty to argue before the debts Recovery Tribunal the question of Bank's right to pursue parallel remedies.
(3.)The petitioners have, therefore, rushed to this Court challenging the constitutional validity of Notification dated 28-1-2003 issued in exercise of powers under section 2 (1) (c) (v) of the Securitisation Act and consequently the correctness of the judgment dated 20-7-2007 of the Debts Recovery Appellate Tribunal.


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