CWP No.20309 of 2011 (O&M) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP No.20309 of 2011 (O&M) Date of Decision : 07.11.2011 Manpreet Grewal & others ... Petitioners versus Punjab & Sind Bank and others ... Respondents CORAM: HON'BLE MR. JUSTICE PERMOD KOHLI HON'BLE MR. JUSTICE TEJINDER SINGH DHINDSA Present : Mr. Shekhar Verma, Advocate for the petitioners. **** Permod Kohli, J.(Oral) Notice of motion to respondent Nos.1 & 4 only. Mr. I.P.Singh, Advocate, who is present in court, accepts notice on behalf of respondent Nos.1 & 4. The petitioners are legal representatives of Col. Gajinder Pal Singh against whom proceedings under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter be referred as SARFEASI Act, 2002) have been initiated. It is alleged that the auction of the property, in the hands of the petitioners being legal representatives of the deceased, is being held without providing them any opportunity of being heard and to settle the claim of respondent No.1. It is also alleged that as against the loan of Rs.70 lacs respondent No.1 has raised a demand of Rs.10,46,11,840/- which is not payable by the deceased predecessor- in-interest of the petitioners who was only a guarantor. The petitioners CWP No.20309 of 2011 (O&M) -2- also claim that the property i.e. SCO No.183, Sector 37-C, Chandigarh was mortgaged by late Col. Gajinder Pal Singh Grewal, which is joint Hindu Family Property and cannot be subject to the attachment for recovery of the alleged loan amount. The petitioners claim to have approached the respondents for providing them copies of all the documents relating to mortgage and the loan amount, however, the same has been denied. This petition has been accordingly filed seeking quashment of notice issued under Section 13(4) of the SARFEASI Act, 2002 with a further direction to respondent No.1 to provide complete documents relating to the mortgage of SCO No.183, Sector 37-C, Chandigarh. Vide impugned notice published in the Indian Express in its issue dated 02.10.2011 the property namely M/s Navrattan Steel Strips Ltd. has been put to sale. The predecessor-in-interest of the petitioners died on 08.08.2011 whereas this auction notice was published on 02.10.2011. It is evident from the impugned notice that it is a public notice and has not been addressed to the petitioners at all. Admittedly, the petitioners are the legal representatives of the deceased Col. Gajinder Pal Singh Grewal on whose name the property stands and 50% of the property belong to the petitioners. In view of the above, this petition is disposed of with following directions: (i)Respondents No.1 & 4 will furnish the complete statement of accounts in respect to the loan advanced to M/s Navrattan Steel Strips Ltd., SCO 23, Top Floor, Sector 20-D, Chandigarh along with the copies of all the documents signed and executed by the late Col. Gajinder Pal Singh Grewal including the deed of mortgage within a CWP No.20309 of 2011 (O&M) -3- period of one week. (ii)The petitioners shall be provided two weeks' time to make a representation with respect to the demand/claim against the late Col. Gajinder Pal Singh Grewal/property mortgaged. (iii)Representation of the petitioners shall be examined and disposed of by passing speaking and reasoned order after two weeks' thereof. (iv)In the meantime, respondents may proceed with the auction process, however, no final decision shall be taken in respect to the sale of property till the directions hereinabove are complied with. (v)In the event, the respondents chose to reject the representation of the petitioners, the order for sale of property shall be kept in abeyance for a period of two weeks to enable the petitioners to seek remedy available to them under law. This petition stands disposed of. Copy of this order be given dasti to the counsel for the petitioners under the signatures of the Special Secretary of this Bench. (Permod Kohli) Judge November 07, 2011 (Tejinder Singh Dhindsa) sonia Judge