IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE ELEVENTH DAY OF AUGUST TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE V.ESWARAIAH WRIT PETITION No.2791 of 2001 Between: M/s Atlas Drugs & Chemicals Private Limited, Rep. by Managing Director, Syed Mustaq Ahmed, S/o. S.M.Ahmed, having its Registered office at Plot No.72, I.D.A.Mallapur, R.R.District. ..... PETITIONER AND 1 The State of Andhra Pradesh, Rep. by its Secretary, Finance Department, Secretariat, Hyderabad. 2 The A.P.State Finance Corporation, Rep. by its Sr.Branch Manager, Rangareddy Region, Chirag Ali Lance, 5-9-194, Abids, Hyderabad. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to to issue a writ, order or direction particularly in the form of Mandamus, declaring the action of the Respondent No.2 in inviting tenders for the sale of plant and machinery of the petitioner company on 19-2-2001 by way of notification dt.11-2-2001 is illegal, arbitrary and opposed to the principles of natural justice and to direct the Respondnet No.2 to provide the facility of the time settlement to the petitioner and to pass Counsel for the Petitioner:MR.K.SOMESWARA KUMAR Counsel for the Respondent No.: MR.J.PARTHASARATHY The Court made the following: Form-NIC-OGS/WP{KRD} THE HON'BLE MR JUSTICE V.ESWARAIAH WRIT PETITION No.2791 of 2001 O R D E R: Heard the learned counsel for the petitioner. The petitioner questions the action of the A.P.State Finance Corporation, represented by its Branch Manager, Ranga Reddy Division, Hyderabad in inviting sealed tenders for the sale of plant and machinery of the petitioner who is borrower by way of tender notification dated 11.02.2002 as illegal and arbitrary and against the principles of natural justice and to provide facility of one time settlement. It is stated that the 2nd respondent Corporation sanctioned a term loan of Rs.7.50 lakhs on 05.03.1994 for setting up of a unit for manufacturing of capsules and tablets in Plot No.72, I.D.A, Mallapuram village and the plant and machinery was hypothecated apart from the immovable property and availed the loan of Rs.6,27,860/- and failed to pay the same in spite of the notices issued on 09.10.1998, 20.08.1998, 09.12.1998, 22.06.1999 and therefore the recall-cum-sale notice was issued on 08.12.2000. It is stated that the petitioner failed to pay the said amount pursuant to the recall- cum-sale notice before 15.10.2000. The unit was seized on 05.01.2001, and thereafter the petitioner submitted an application on 11.01.2001 for one time settlement without making any down payment. However, the petitioner was called for discussions and to consider his case, but the petitioner did not respond for one time settlement and an amount of Rs.13,19,211/- was due as on 31.03.2001. However, as the petitioner failed to pay the outstanding dues the said notification has been issued, and as the petitioner himself failed to respond for the settlement of one time settlement pursuant to his loan application, the sale notice dated 11.02.2001 has been issued. It is stated that though this Court granted interim stay of the sale by order dated 19.02.2001 subject to payment of Rs.6 lakhs within four weeks which was further extended by 14 days by order dated 27.03.2001. It is stated that the petitioner did not pay the said amount even within the extended time. If that be so, I am of the opinion that the petitioner is not entitled for any relief, more so, when there was no irregularity or illegality in calling for the tenders pursuant to the tender notification. Having regard to the facts of the case, I do not see any merit to allow the writ petition. The Writ Petition is, accordingly, dismissed. No order as to costs. ___________________ V.ESWARAIAH,J Dated: 11.08.2008 Dsr .... REGISTRAR // TRUE COPY // SECTION OFFICER To 1 The State of Andhra Pradesh, Rep. by its Secretary, Finance Department, Secretariat, Hyderabad. 2 The A.P.State Finance Corporation, Rep. by its Sr.Branch Manager, Rangareddy Region, Chirag Ali Lance, 5-9-194, Abids, Hyderabad. 3.2CCs to 4.2CD copies