Hyderabad: The Hyderabad High Court has slapped Rs 25,000 on each of the petitions moved by Swetha Exports Ltd for repeatedly approaching either the Debt Recovery Tribunal (DRT) or the High Court with an intention to prevent the Bank of India from selling their mortgaged properties for non-repayment of loan.
A division bench comprising Acting Chief Justice Ramesh Ranganathan and Justice J. Uma Devi was dismissing two petitions by Swetha Exports and Swetha Exports India Pvt. Ltd of East Godavari district.
The companies had filed the plea against Bank of India for taking recourse to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, to execute the recovery certificate issued by the DRT, Visakhapatnam, against them.
The companies which export buffalo and ox horn button blanks had borrowed Rs 7.1 crore from the BoI
The bank had first initiated proceedings under Section 19 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 and later the Sarfaesi Act.
The bench noted that the petitioners had resorted to every trick in the book to prevent the bank from putting mortgaged properties on sale. The petitioners were directed to pay the costs within four weeks.
