M/S Goldmine Enterprises PVT. LTD. vs. M/S Bank Of Baroda

Facts

The petitioner, M/s Goldmine Enterprises Pvt. Ltd., filed a writ petition challenging a possession notice dated September 7, 2023, published on September 13, 2023, in the Indian Express newspaper. This notice was issued by the respondent, M/s Bank of Baroda, concerning recovery proceedings against the scheduled property. The petitioner contended that the recovery proceedings initiated by the bank were illegal and in violation of the SARFAESI Act, 2002. The petition was filed under Articles 226 and 227 of the Constitution of India.

Held

The Court noted the submission made by the learned counsel for the petitioner that the entire loan has been cleared, and consequently, the writ petition has become infructuous. The learned counsel appearing for the respondent-Bank accepted this submission. In light of these circumstances, the Court disposed of the petition as having become infructuous. The specific details of the loan, the amount outstanding, or the exact date of clearance were not elaborated upon in the judgment. The Court's decision was based solely on the mutual acceptance of the loan being cleared.

Key Issues

1. Whether the recovery proceedings initiated by the respondent bank against the scheduled property are illegal and in violation of the SARFAESI Act, 2002? The petitioner argued that the entire loan has been cleared, rendering the recovery proceedings illegal and infructuous. The respondent bank, through its counsel, accepted this submission.