HON’BLE SRI JUSTICE GHULAM MOHAMMED And HON’BLE SRI JUSTICE K.G.SHANKAR W.P.No.1061 of 2011 O R D E R: (per Hon’ble Sri Justice Ghulam Mohammed) This writ petition is filed for issuance of a writ of Mandamus declaring the notice dated 23.09.2009 issued by the respondent under Rule 8(1) & (2) of the SARFAESI Rule and the consequential proceedings thereon as illegal, arbitrary and is in violation of the principles of natural justice and fair play besides in violation of mandatory stipulations as contained under Section 36 of the SARFAESI Act, and consequently set aside the same. The brief facts of the case are that the petitioner had procured a small business finance from the respondent-bank with a limit of Rs.8,00,000/- by depositing the title deeds of his property viz., H.No.4-10- 12/5/A, Rajampeta, Sangareddy Town and Mandal, along with appurtenant open land totlly to an extent of 707 sq.yards on 20.12.2005. The said property was leased out to A.P.Residential School for BC Girls, Sangareddy, on a monthly rent of Rs.8,827/- from 01.08.2009. The rent amount collected from it shall be deposited to the above said loan account. As the petitioner fell ill, he could not repay the amounts regularly. Then the respondent-bank issued the statutory notice under Section 13(2) of the SARFAESI Act and the petitioner submitted his reply. The respondent-bank has taken coercive measures by issuing the possession notice on 23.9.2009. On 28.12.2010, the officials went to the property and directed the tenant of the petitioner to vacate the premises as it was mortgaged to the respondents. On that the petitioner immediately rushed to the spot and informed the officials, that the respondent has given an oral undertaking that he will not press into service the notice issued till the completion of the lease period of the tenant and the petitioner also given an undertaking to clear off the dues by the said date. It is further submitted that immediately the petitioner also made a representation dated 29.12.2010 reiterating his request that he is ready to pay the outstanding amount of his loan account in instalments @ Rs.20,000/- per month while giving an undertaking that the lease amount that is to be paid to the petitioner by the tenant shall be directly be credited to the loan account while bringing to his notice that all efforts are being taken for early clearance of the loan amount. The grievance of the petitioner is that in spite of his undertaking that he will clear off the outstanding loan amounts. The respondent-bank has issued the impugned notice. Hence he prayed to set aside the same. Heard both sides. Learned counsel for the petitioner contended that petitioner has procured a small business finance from the respondent-bank by mortgaging the schedule property, which was leased out to A.P.Residential School for BC Girls, Sangareddy on a monthly rent of Rs.8,827/- from 01.08.2009. He further submits that the petitioner is prepared to clear of the loan amount within a period of six months. Considering these circumstances, the Writ Petition is disposed of directing the petitioner to pay a sum of Rs.5,00,000/- (Rupees five lakhs only) within a period of four weeks from the date of receipt of a copy of this order and thereafter to clear off the balance due amount payable to the respondent-bank within a period of one month thereafter. If the petitioner fails to comply with any of the conditions stated above, the respondent- bank is at liberty to proceed in accordance with law. ___________________ GHULAM MOHAMMED,J ______________​_ K.G. SHANKAR,J Note: Issue C.C. in three days (B/o) 25th January, 2011. PNV