Lisa Gill JUDGMENT
Hemant Gupta, J.
1. Challenge in the present writ petition is to a public notice dated 14.07.2015 (Annexure P-1), whereby respondent No. 1 - IFCI Ltd., a financial institution, as defined under Section 2(m) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the Act'), invited bids for sale/assignment of debts/secured assets of the petitioner-company at a reserve price of Rs. 37.69 crores as against the reserve price of Rs. 110 crores fixed in e-auction notice dated 25.06.2015 (Annexure P-37) for sale of the mortgaged property.
2. Challenge to the aforesaid notice arises out of the fact that with a view to finance its Hotel Project, the petitioner-company approached the Financial Institutions including respondent No. 1- IFCI Ltd. and a term loan worth Rs. 815 lacs was sanctioned in the year 1991. The hotel became operational and came into business on 27.12.1999. The hotel, having 117 well furnished rooms and various restaurants and other luxurious amenities, is being run as a Five Star Hotel in the name and style of 'Hotel Majestic Plaza' in the heart of Ludhiana City.
3. It is pleaded that the implementation of the Hotel Project was delayed, therefore, vide letter dated 12.04.1999, respondent No. 1 rescheduled the loans and also granted various concessions by waiving of compound interest and by extending the repayment period. The loan was again restructured on 03.01.2003 while reducing the rate of interest and rescheduling the repayment. The loan was again restructured vide letter dated 31.03.2005. In the year 2007, the petitioner-company decided to renovate the hotel and to meet the cost of renovation, a term loan of Rs. 5.22 crores was obtained from respondent No. 3 - Punjab National Bank. In April, 2008 and May, 2010, credit facilities of Rs. 4.50 crores and Rs. 5 crores were obtained from IDBI Bank Limited and Reliance Capital Ltd. respectively. Still further, another credit facility of Rs. 2.25 crores was obtained from Axis Bank Ltd. on 26.04.2011. It was vide letter dated 01.07.2011, Punjab & Sind Bank taken over loan from M/s. Reliance Capital Limited after sanctioning the loan of Rs. 12 crores.
4. As per the petitioner, the total amount due and payable to respondent No. 1 as on 29.02.2012 was Rs. 6,10,76,124/- i.e. Rs. 5,83,99,497/- as principal amount and Rs. 26,76,627/- as interest. However, on 04.06.2012, respondent No. 1 recalled the loan and claimed an amount of Rs. 99,95,92,260/- as due on 31.03.2012. Thereafter, pursuant to a notice dated 17.08.2012 issued under Section 13(2) of the Act, the petitioner-company submitted its reply on 15.10.2012. However, the request of the petitioner for restructuring of the loan and for additional funds was rejected on 23.10.2012. It was on 02.11.2012, the symbolic possession of the secured assets of the petitioner-company was taken over by respondent No. 1 after a notice under Section 13(4) of the Act was issued. The petitioner-company is said to have paid an amount of Rs. 302 lacs on 29.11.2012 and 30.11.2012, thus, making a total payment of Rs. 377.50 lacs out of Rs. 610.17 lacs due as on 29.02.2012. The petitioner-company is said to have made another payment of Rs. 25 lacs on 31.01.2013 and some other payments amounting to Rs. 47 lacs during the period from April, 20113 to 26.02.2014. However, a sale notice claiming an amount of Rs. 105.65 crores due as on 13.08.2012 was issued by respondent No. 1 on 28.02.2014 for sale of immovable and movable properties of the petitioner-company though the total outstanding as per the petitioner is Rs. 267.76 lacs. Respondent No. 1 issued another sale notice dated 27.06.2014 (Annexure P-19).
5. However, respondent No. 3 - Punjab National Bank challenged the said sale notice before the Debt Recovery Tribunal by filing a Securitization Application bearing No. 363 of 2014 on 25........