Assets of 2 city cos attached over Rs 9.5cr loan default

The court commissioner has taken possession of the properties of V Force Training Pvt Ltd and JB Global Sourcing (India) Pvt Ltd over loan defaults of Rs 9.5 crore under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.
This action comes after a protracted legal battle initiated in 2011 by Invent Assets Securitisation & Reconstruction Pvt Ltd, which acquired the rights from State Bank of Patiala to recover the outstanding dues.
In 2009, State Bank of Patiala extended credit facilities of Rs 10 crore to the respondents.
After they failed to repay the loan, the bank declared the accounts as non-performing assets and issued a demand notice in March 2011 under SARFAESI Act. Subsequently, Invent Assets took over the bank’s interests through an assignment agreement in July 2014.
In Jan 2013, the nod was granted for taking possession of the secured assets and the assistant registrar of Bandra centre of courts was appointed for the task. However, this order was challenged, which led Supreme Court to quash it in a criminal appeal. The apex court directed that a fresh hearing be held, ensuring that all parties, including the intervener claiming tenancy rights, were given an opportunity to present their cases.
The intervener, asserting tenancy rights over the disputed properties, was granted a hearing as per SC’s directive. Despite multiple opportunities, the intervener failed to provide evidence of a valid lease agreement pre-dating the mortgage or a legally compliant lease established thereafter. The court noted the absence of proof regarding the lease’s existence, duration and validity.
Given the intervener’s inability to substantiate tenancy claims and the absence of any stay order from the debt recovery tribunal, the court proceeded under Section 14 of SARFAESI Act. Advocate Sunil Rajendra Pandey was appointed as the court commissioner to execute the possession order.
Following due process, the court commissioner successfully took possession of the secured assets of V Force Training Pvt Ltd and JB Global Sourcing (India) Pvt Ltd.
The action underscored the judiciary’s commitment to upholding financial agreements and enforcement of securities, ensuring that lending institutions can recover dues in accordance with the law.