IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH C.W.P. No. 1150 of 2010 Date of Decision: 02.12.2011 Bank of India ........Petitioner Versus Punjab National Bank and another .......Respondents CORAM: HON'BLE MR. JUSTICE HEMANT GUPTA HON'BLE MR. JUSTICE G. S. SANDHAWALIA Present: Mr. K.S. Rekhi, Advocate for the petitioner Mr. P.K. Dutt, Advocate for the respondents HEMANT GUPTA, J. Challenge in the present writ petition is to the sale notice dated 13.1.2010 (Annexure P-4) whereby respondent No. 1 has issued a sale notice for the sale of hypothecated stock of respondent No. 2 i.e. raw material, semi finished stock lying in the factory. The petitioner claims that goods of respondent No. 2 were already hypothecated with the petitioner Bank way back in the year 2006, therefore, issuance of sale notice by respondent No. 1 is illegal and arbitrary. It is asserted by the petitioner that it was in the year 2009, the petitioner was informed by the respondent No. 1 that they have advanced loan of Rs. 20.40 crores to respondent No. 2 on hypothecating stock with it. The petitioner claims that the borrower has hypothecated its goods in favour of the petitioner prior in time, therefore, the subsequent hypothecating of goods of the borrower in favour of the respondent-Bank is subject to the rights of the petitioner over the hypothecated goods. It has also come on record that respondent-Bank has initiated proceedings under Section 13(4) of the Securitisation and Reconstruction of Financial Assets C.W.P. No. 1150 of 2010 2 and Enforcement of Security Interest Act, 2002 and the borrower is before the Debt Recovery Tribunal challenging the said action. Keeping in view the contentions of the parties and the earlier order passed by this Court on 9.11.2010 whereby the first respondent was permitted to make an effort to dispose of hypothecated goods in association with the petitioner Bank and order dated 15.2.2011 whereby petitioner–Bank was offered to take charge of the property and sell hypothecated goods, we order that the respondent-Bank shall permit the petitioner to sell hypothecated goods as mentioned in the petition which is now under the lock and key of the respondent-Bank. The respondent-Bank shall hand over lock and key to the petitioner forthwith. The petitioner may sell the same by associating respondent No. 1. The sale proceeds shall kept by the petitioner subject to any order that may be passed by the Debt Recovery Tribunal. The writ petition stands disposed of accordingly. (HEMANT GUPTA) JUDGE (G.S. SANDHAWALIA) 02.12.2011 JUDGE reena