Upon receipt of the numberice, respondent No.1 offered to pay a sum of Rs.18 lakhs for settlement of the loan account, but the appellant did number accept the offer and filed an application under Section 14 of the SARFAESI Act, which was allowed by District Magistrate Collector, Allahabad vide his order dated 25.8.2008.
This companypelled the appellant to issue numberice to respondent Nos.1 and 2 under Section 13 2 requiring them to pay Rs.23,22,972/ along with future interest and incidental expenses within 60 days.
The bank should have proceeded against the borrower and exhausted all the remedies against him and thereafter the bank companyld have proceeded against the guarantor.
Thereafter, the appellant issued numberice dated 21.1.2009 to respondent Nos.1 and 2 under Section 13 4 of the SARFAESI Act.
She pleaded that the numberices issued by the appellant for recovery of the outstanding dues are ex facie illegal and liable to be quashed because numberaction had been taken against the borrower i.e., respondent No.2 for recovery of the outstanding dues.
Thereupon, respondent No.1 deposited a sum of Rs.50,000/ and gave written undertaking to pay the balance amount in instalments.
After another one year, the account of respondent No.2 was classified as Non Performing Asset.
On 19.7.2007, the appellant sent separate letters to respondent Nos.
1 and 2 requiring them to deposit the outstanding dues amounting to Rs.23,78,478/ .
However, she did number fulfil her promise to repay the remaining amount.
Leave granted.
Faced with the imminent threat of losing the mortgaged property, respondent No.1 filed C.M.W.P. No.55375 of 2009 and prayed that the appellant herein may be restrained from taking companyrcive action in pursuance of the numberices issued under Section 13 2 and 4 and order dated 25.8.2008 passed by District Magistrate Collector, Allahabad.
