IN THE HIGH COURT OF JUDICATURE AT

ALLAHABAD, LUCKNOW BENCH.

WRIT-C PETITION NO. OF 2022

IN THE MATTER OF

1. Gokulamrut, through its Director Shri

Lokesh Rathore, Office At- 7 Satyaganga

Building, Pawan Vihar, Pilibhit Bye Pass

Road, Bareilly-243001, Uttar Pradesh

2. Shri Praveen Kumar Chaturvedi, R/o- A 45,

Karamchari Nagar, Mini Bye Pass Road,

Near SBI Bank, Bareilly-243001, Uttar

Pradesh

3. Shri Satendra Nath Chaturvedi, R/o- A 45,

Karamchari Nagar, Mini Bye Pass Road,

Near SBI Bank, Bareilly-243001, Uttar

Pradesh

4. Smt. Preeti Singh, R/o- 07 Pawan Vihar,

Rohilkhand University Road, Bareilly-

243001, Uttar Pradesh

5. Shri Harish Kumar, R/o Near Mandir

Chandpur, Bichpur, Barielly-243001, Uttar

Pradesh

6. Shri Jai Ram, R/o 07 Pawan Vihar,

Rohilkhand University Road, Bareilly-

243001, Uttar Pradesh

7. Smt. Reshma, R/o 07 Pawan Vihar,

Rohilkhand University Road, Bareilly-

243001, Uttar Pradesh

8. Shri Vishakha, R/o 07 Pawan Vihar,

Rohilkhand University Road, Bareilly-

243001, Uttar Pradesh

9. Smt. Resham Rathur, R/o 07 Pawan Vihar,

Rohilkhand University Road, Bareilly-

243001, Uttar Pradesh

10. Shri Lokesh Rathore, R/o 07 Pawan

Vihar, Rohilkhand University Road,

Bareilly-243001, Uttar Pradesh

---------PETITIONERS
 Vs

1. State of U.P. through Principal Secretary

Revenue Government of Uttar Pradesh, Civil

Secretariat, Lucknow.

2. District Magistrate, Bareilly,

3. Chairman, Debt Recovery Tribunal, Lucknow,

4. Assets Care And Reconstruction Enterprises

Ltd., through its Branch Manager, 2nd floor,

Mohan Dev Building, 13 Tolstoy Marg, New

Delhi.

5. Indiabulls Asset Reconstruction Company

Limited, through its Authorized officer,

Corporate Office at Indiabulls House, 448-451,

Udyog Phase-V, Gurugram-122016

6. Indiabulls Asset Housing Finance Limited,

through its Authorized officer, 154 A, 1st Floor,

A Square Building, Opposite DM Residence, Civil

Lines, Bareilly, Uttar Pradesh-243001

 ----OPPOSITE PARTIES

PETITION UNDER ARTICLE 226

OF THE CONSTITUTION OF INDIA

TO,

The Hon’ble Chief Justice and his Companion

Judges of this Hon’ble Court.

That the petitioner most humble submits as

under:-

1. That the petitioner declares that he has not

filed any other Writ Petition in the present

subject matter before this Hon’ble Bench

or at Allahabad High Court. Petitioner

Further declares that he has not received

any notice of caveat in any manner.

2. That the very outset it is relevant to

mention that it is a mercy petition and by

 means of this petition the petitioner is

desirous to clear off all the outstanding

dues with the respondents financial

institutions alongwith interest and wants

the indulgence of this Hon’ble Court

whereby seeking the relief of Mandamus

directing the India Bulls/ACRE to accept

the proposal of settlement enabling the

petitioner to repay the amount within a

period of two months.

3. That the petitioner also wants to apprise

this Hon’ble Court that proceedings

between the parties are pending between

the parties before the Debt Recovery

Tribunal, Lucknow bearing case no. 416/

2022 and is fixed for 17/11/2023 for final

arguments. True Copy of the Status report

is being annexed herewith as Annexure No.

01 to this petition. Further petitioner wants

to demonstrate that on one side the india

bulls assets reconstruction pvt. Ltd is

 contesting the case before Debt Recovery

Tribunal, Lucknow thoroughly against the

petitioner and on the other side they have

proceeded against the petitioner

surreptitiously. As on 12/09/2023 the

petitioner have got the letter/ notice

regarding possession from Addl. City

Magistrate (1st), Bareilly, then it reveal that

the respondents are intended to take the

possession of the property despite of the

fact that the matter is pending between

them before Debt Recovery Tribunal,

Lucknow Debt Recovery Tribunal, Lucknow.

True copy of the notice dated 13/09/2023

is being annexed herewith as Annexure No.

02 to this petition.

4. That on 28/09/2023 the petitioners have

sent to the Branch Manager, Assets Care

And Reconstruction Enterprises Ltd., 2nd

floor, Mohan Dev Building, 13 Tolstoy

 Marg, New Delhi, urging them to accept

the proposal of the petitioner to clear the

outstanding within a period of one month.

True copy of the letter dt. 28/09/2023 is

being annexed herewith as Annexure No.

03 to this petition.

5. That few facts which are necessary for the

fair and just disposal of the case are as

follows :

6. That initially a loan was granted by

Indiabulls Housing Finance Limited which

was assigned to the India Bulls Asset

Reconstruction Pvt. Ltd. and subsequently

it was again assigned to Asset Care and

Reconstruction Enterprises Ltd. (herein

after referred as “ACRE”) vide agreement

dated 29/06/2022.

7. That it is submitted that the Indiabulls

Housing Finance Limited (IHFL) has

 sanctioned and disturbed an amount of Rs

84,01,387 to the petitioners vide Loan

Account No. G13030XXVII (Earlier Loan

Account Agreement dated 27/10/2017

along with other loan related documents.

8. In pursuance of securing the aforesaid loan

facility, it is imperative to underscore the

unwavering commitment of the petitioners,

who, with utmost diligence and utmost

regard for their financial obligations,

deliberately took steps to establish an

equitable mortgage over their valuable

property. This property, specifically

identified as 'Plot No. 45, comprising a

substantial portion of Gata No. 564, 565,

and 566, nestled within the picturesque

locality of Banke, Saidpur Hawkins,

District- Bareilly,' stands as a testament to

 the petitioners' dedication to honoring their

financial commitments.

9. That it is of paramount significance to

highlight that the meticulously crafted loan

agreement included a pivotal clause

wherein the petitioners exhibited an

unwavering, resolute commitment to

maintain a stringent regime of impeccable

financial discipline. This unwavering

commitment encompassed the punctual

and unwavering submission of Equated

Monthly Installments (EMIs) into the

aforementioned Loan Account, and it

stands as a testament to the petitioners'

steadfast determination to fulfill this

obligation with utmost precision.

10. It is an incontrovertible reality that

the advent of the Covid-19 pandemic in

March 2020 unleashed a catastrophic

 nationwide lockdown, casting a long and

ominous shadow over the entire economic

landscape. Virtually every sector of

business bore the brunt of this

unparalleled crisis, succumbing to its

relentlessly adverse impact that brought

about an abrupt and crippling cessation of

normal business operations.

11. The petitioners, as a direct

consequence of this all-encompassing

calamity, were not spared from the severe

blow inflicted by the pandemic's ravaging

effects. They found themselves in the

throes of a dire predicament, grappling

with enormous financial losses and an

insurmountable challenge in generating the

requisite levels of revenue. The onslaught

of the pandemic was so merciless and far-

reaching that even a year after the

resumption of what could be deemed as a

 semblance of normalcy, countless

businesses remain mired in the quagmire

of recovery, struggling valiantly but often

in vain to regain their former standing.

12. That the petitioners, in a distressing

echo of the broader economic turmoil

precipitated by the Covid-19 pandemic,

bore the brunt of a catastrophic financial

setback, rendering them incapable of

meeting their obligations to remit Equated

Monthly Installments (EMIs) towards the

aforementioned Loan Accounts for an

extended duration exceeding 90 days.

Such protracted financial hardship was a

direct consequence of the unprecedented

challenges posed by the pandemic, which

culminated in the regrettable classification

of the petitioners' loan amount as a Non-

Performing Asset (NPA) on the fateful date

of 25th January 2022.

13. That upon the declaration of the

petitioner's account as a Non-Performing

Asset (NPA), the Respondent proceeded to

issue a Demand Notice on the 27th day of

January 2022, invoking the provisions of

Section 13(2) of the SARFAESI Act. This

notice was dispatched to all the

petitioners, explicitly demanding the sum

of Rs 91,86,698.45/-, ascertained as of the

25th day of January 2022. The Respondent

further stipulated in the Demand Notice

the obligation for the petitioners to remit

the aforementioned amount, along with

applicable future interest as per the terms

delineated in the Loan Agreements, within

a stipulated period of 60 days,

commencing from the date of issuance of

the Demand Notice.

14. That it is imperative to underscore

that the petitioner is unequivocally

committed to discharging their financial

obligations in their entirety, encompassing

both the principal loan amount and the

associated interest, consistent with the

precise terms articulated within the loan

agreement. The petitioner's unwavering

dedication to fulfilling their financial

obligations has been exemplified through

their proactive engagement with the

respondent. In a clear demonstration of

their intent, the petitioner diligently

submitted representations to the

respondent, imploring for a judicious

extension of one month. This request was

made with the sole purpose of facilitating

the petitioner in effecting the settlement of

their outstanding dues in a manner that

upholds the principles of financial

responsibility and commitment.

15. That the petitioner's unwavering

commitment to honor their obligations,

coupled with their proactive efforts to

engage with the respondent and seek a

reasonable extension, firmly establishes

their genuine intent to fulfill their

responsibilities in a responsible and timely

fashion.

16. That regrettably, the respondents

have displayed a glaring disregard for the

unwavering determination and unequivocal

commitment of the petitioners to repay the

loan. Despite the petitioners' resolute

stance and clear intentions to honor their

financial obligations, the respondents

callously proceeded with the forceful

possession of the mortgaged property,

invoking the provisions of Section 13(4) of

the Act.
17. That this heavy-handed and unilateral

action taken by the respondents, without

due consideration for the earnest efforts

and assurances of the petitioners,

underscores a blatant and unjust

infringement upon the petitioner's rights. It

reflects a complete lack of empathy and a

failure to engage in a fair and equitable

resolution, leaving the petitioners in an

unduly prejudiced and precarious position.

18. That it has come to the petitioner's

attention, with grave concern, through the

issuance of the respondent's sale notice

dated the 19 th of May 2023, that the

bank is aggressively pursuing the recovery

of an exorbitant sum amounting to Rs

1,02,00,000.00/-. This substantial amount

includes not only the principal but also the

accrued interest, adding an intolerable

burden to the petitioner's financial

predicament. The respondent's chosen

course of action is nothing short of

audacious, as they seek to achieve this

recovery objective by brazenly initiating

the auction of the petitioner's valuable

property. This development is not only

alarming but also deeply distressing to the

petitioner, as it threatens their financial

stability and undermines their rights as a

debtor.

The petitioner is left with no choice

but to vehemently oppose this overtly

aggressive stance taken by the bank, as it

imperils their financial well-being and has

far-reaching consequences. The petitioner

seeks immediate redress to ensure a fair

and equitable resolution to this dire

situation.
19. That the petitioner is fervently and

exhaustively endeavoring to secure the

necessary funds for settling the onerous

outstanding dues that loom over them.

These efforts have manifested in a

determined pursuit to liquidate their

assets, particularly by exploring property

sales as a viable avenue. However, despite

the petitioner's relentless pursuit, they

have yet to identify a bona fide and willing

buyer who can facilitate the resolution of

this vexing financial matter.

The petitioner's unwavering

commitment to rectify their financial

obligations is undeniable. Their diligent

search for a suitable purchaser

underscores their absolute dedication to

fulfilling their responsibilities. In light of

these strenuous efforts, it is evident that

the petitioner is sparing no effort in

seeking a resolution, making it all the

 more imperative for the respondent to

engage in a fair and equitable manner to

expedite a mutually satisfactory conclusion

to this pressing issue.

20. That it is imperative to underscore a

glaring inconsistency that demands

immediate attention. The valuation of the

petitioner's properties, as delineated in the

respondent's sale notice, starkly contrasts

with the valuation presented by the

respondents in their sale notice dated the

19th of May 2023.

This discrepancy is not a trivial

matter; it is a stark testament to a lack of

transparency and raises legitimate

concerns about the veracity of the

valuation process employed by the

respondents. The disparity between these

valuations casts a shadow of doubt on the

fairness and accuracy of the proceedings,

which is a matter of profound significance

 in the petitioner's pursuit of justice and

equitable resolution.

21. That it is paramount to vehemently

assert that the residential plots, bearing

the distinctive identification of Gata no.

564, 565, and 566, unequivocally possess

a market value that substantially exceeds

a staggering sum of 2.25 crores. However,

it is with profound dismay that the

respondents have chosen, with an

apparent intent to vex and hinder, to

egregiously and erroneously undervalue

these properties.

This deliberate act of

misrepresentation by the respondents

cannot be dismissed lightly. It constitutes

a grave injustice, deliberately inflicting

substantial harm and distress upon the

petitioner. By erroneously deflating the

valuation of the aforementioned

properties, the respondents have created

 insurmountable obstacles for the petitioner

in their earnest endeavor to sell these

valuable assets. This blatant and calculated

act of manipulation cannot be tolerated

and demands immediate redress. It not

only infringes upon the petitioner's rights

but also undermines the integrity of the

entire process, thereby necessitating an

urgent and resolute intervention to rectify

this unjust and prejudicial situation.

22. That the petitioner stands resolute in

their commitment to redress their financial

obligations in their entirety. To

unequivocally demonstrate this intent, the

petitioner is prepared to promptly deposit

a substantial sum of 30 lakhs within a

mere 10 days. This decisive action serves

as a compelling testament to the

petitioner's unwavering determination to

settle the entire outstanding loan amount

 within an expedited timeframe of one

month.

This proactive and substantial

deposit, coupled with the petitioner's

fervent willingness to clear the remaining

outstanding balance, underscores their

utmost dedication to meeting their

financial responsibilities with urgency and

integrity. The petitioner demands a swift

and fair resolution to this matter in

accordance with these demonstrated

intentions.

23. That the petitioners wish to make it

unequivocally clear that they are not

seeking any form of leniency or pardon

with regard to the loan. Their sole request

is for a modest extension of one month, a

reasonable and prudent measure to ensure

the full repayment of the outstanding loan

amount. This extension is sought to

prevent any further detriment to their

financial interests, particularly in the event

that their valuable property is sold at an

egregiously undervalued rate.

The petitioners' stance is unwavering:

they demand neither absolution nor special

treatment but rather a fair and equitable

opportunity to honor their financial

commitments while safeguarding their

legitimate interests from unjust losses that

might otherwise arise from a hasty sale.

GROUNDS

A. Because the petitioner is desirous to

clear off all the outstanding dues with

the Assets Care And Reconstruction

Enterprises Ltd.and only seeks that the

recoverable amount may be accepted

with in a period of two months.

B. Because the Assets Care And

Reconstruction Enterprises Ltd. has

shown the dual standard in the present

 matter as on the one side contesting the

case before Debt Recovery Tribunal,

Lucknow thoroughly against the

petitioner and on the other side they

have proceeded against the petitioner

surreptitiously. As on 12/09/2023 the

petitioner have got the letter/ notice

regarding possession from Addl. City

Magistrate (1st), Bareilly, then it reveal

that the respondents are intended to

take the possession of the property.

C. Because this Hon’ble Court should give a

fair chance to the petitioner to return

the money to the bank within a period of

two months.

D. Because the petitioners wish to make it

unequivocally clear that they are not

seeking any form of leniency or pardon

with regard to the loan. Their sole

 request is for a modest extension of one

month, a reasonable and prudent

measure to ensure the full repayment of

the outstanding loan amount.

E. Because this extension is sought to

prevent any further detriment to their

financial interests, particularly in the

event that their valuable property is sold

at an egregiously undervalued rate.

F. Because the Assets Care And

Reconstruction Enterprises Ltd., did not

given any response towards the request

of the petitioner urging them to accept

the proposal of the petitioner to clear

the outstanding within a period of one

month.

PRAYER

The Petitioner most respectfully prays

for the following reliefs:

1. That this Hon'ble Court may be pleased to

quash all proceedings initiated by the

Respondent No. 1 under the Securitization

and Reconstruction of Financial Assets and

Enforcement of Security Interest

(SARFAESI) Act against the Petitioner,

including but not limited to the Demand

Notice dated 27/01/2022 and possession

proceedings under Section 13(4) of the

SARFAESI Act.

2. That pending the disposal of this Writ

Petition, this Hon'ble Court may be pleased

to grant an interim stay on the auction of

the Petitioner's property as per the sale

notice dated 19/05/2023 issued by the

Respondent No. 1.

3. That the Hon'ble Court may kindly direct

the Respondent No. 1 to consider the

 impact of the COVID-19 pandemic on the

Petitioner's financial situation while

assessing the alleged default and pursuing

recovery measures.

4. That this Hon'ble Court may be pleased to

direct the Respondent No. 1 to conduct a

fair and impartial reassessment of the

market value of the property in question,

considering expert opinions and market

conditions, and not to proceed with the

auction based on the current valuation.

5. That the Respondent No. 1 may be

directed to provide the Petitioner with a

reasonable opportunity to repay the

outstanding loan amount along with

applicable interest in accordance with the

terms of the loan agreement.

6. That this Hon'ble Court may be pleased to

uphold and protect the fundamental rights

of the Petitioner, especially their right to

property as enshrined under Article 300A

of the Constitution of India.

7. That the Petitioner humbly seeks any other

relief or direction that this Hon'ble Court

may deem fit and just in the circumstances

of the case.