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2011 (1) TMI 1220 - HC - Companies LawNotice issued under section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 challenged Held that:- In this case, indisputably, there are other secured creditors who have not even issued any notice under section 13(2) of the SARFAESI Act. Thus the creditors representing not less than three-fourths in value of the amount outstanding, have not taken measures to recover the said secured debt under section 13(4) of the SARFAESI Act and therefore, as per the second proviso to section 15(1) of the SICA, the proceeding pending before the BIFR has not abated and so, the bar under section 22 of the SICA is applicable. Therefore, in the instant case, section 22 of the SICA is a bar for any further proceedings to be initiated by the first respondent under section 13(4) of the SARFAESI Act. As we have noticed, the prayer in this writ petition is for quashing the notice issued under section 13(2) of the SARFAESI Act. In our considered opinion, as we have held supra, since the notice under section 13(2) of the SARFAESI Act does not constitute a measure to exercise the power of the first respondent under section 13(4) of the SARFAESI Act, the said notice cannot be quashed at all. It is for the petitioner either to comply with the demand or to send a proper reply for the said notice and thereafter, it is for the first respondent to act according to law by complying with section 13(9) of the SARFAESI Act as well as the second proviso to section 15(1) of the SICA. Appeal dismissed.
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