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TMI Blog2016 (9) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... s to the credit of the loan account. For the default committed in repaying the debt, the loan account has been declared as a non-performing asset by the bank and hence, it has started initiating securitization measures as provided for under Section 13 of the Securitization and Reconstruction of Financial Assets and Security Interest Act, 2002 (for short, the Act). It is questioning these measures, the present Writ Petition is filed. Heard learned counsel for the petitioners and Ms. Dyumani, learned Standing Counsel for the respondent bank. No meaningful explanation has been forthcoming from the petitioners as to the reasons why they have committed default in liquidating the liability, except taking a stock ground that due to power-cuts, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondent bank. Since the offer was found to be so disappointing, the 1st respondent bank has communicated through their letter dated 29.03.2012 itself that the proposal of receiving Rs. 62 lacs as full and final settlement is not acceptable. Therefore, it is a clear case where the petitioners have been provided multiple opportunities by the 1st respondent bank to liquidate the entire liability, but they are procrastinating the same on one pretext or the other. In fact, Ms. Dyumani, learned Standing Counsel for the 1st respondent bank, upon instructions, would submit that the present sale notice, which was issued on 05.02.2016, is the sixth one issued proposing to put the secured asset to sale on 10.03.2016 between 03.00 and 04.00 P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... affairs, etcetera. If the borrowers do not repay the loan amounts promptly, the bank will find it not only difficult to recycle the monies accepted by way of fixed deposits from the customers, but might even find it difficult to provide quality services to the rest of the customers of the bank. Discipline is not only to be employed by the bank in its day to day business activities but even customers of a bank require to show a steadfast commitment and discipline. Failure to live up to the promises made, which alone induce the bank to lend money, will have a cascading effect on the business operations of a bank. This apart, when the non-performing assets are mounting, the very vitals of the economy gets impacted. Keeping all these factors in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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