IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTY FIFTH DAY OF MARCH TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION No.6228 of 2008 Between: M/s. Janatha Seva and Cold Storage, Pvt. Ltd. Ankireddypalem, Rep by its Managing Director Mohammad Sikander, S/o. Sawer, Aged 37 years, R/o. N.H. 5 Road, Ankireddypalem, Guntur. ..... PETITIONER AND 1 State Bank of India, Commercial Branch, Rep by its Chief Manager, Kannavarithota, Guntur. 2 The Debt Recovery Officer, State Bank India, Commercial Branch, Guntur. .....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 issue any writ or order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the 1st respondent in bringing the properties of the petitioner and other properties for sale by its tender Notice 1-3-2008 as illegal and arbitrary and grant a period of six months for payment of the loan to the 1st respondent by the petitioner by way of settlement and payment and to pass Counsel for the Petitioner: MR.RAJA REDDY KONETI Counsel for the Respondent Nos.1 and 2: N.A. The Court made the following : ORDER: The petitioner, which appears to have borrowed certain monies from the first respondent bank, seems to have committed default in paying up the dues to the bank, and as a result of which, the asset has been declared as Non Performing Asset and steps have been taken for recovering the outstanding liability. As a measure of realizing the dues, a sale proclamation notice has been issued on 01.03.2008. The petitioner asserts that it had been taking all necessary steps to liquidate the entire liability of the first respondent bank. If only it had been provided with a reasonable period of time, it would be in a position to liquidate the liability. To establish the bonafides, the petitioner seeks time upto 19.05.2008 for purpose of depositing a sum of Rs.30.00 lakhs to the credit of the loan account of the first respondent bank and also to submit an appropriate representation proposing to liquidate the entire balance liability, within next four months thereafter. If the petitioner deposits a sum of Rs.30.00 lakhs (Rupees thirty lakhs only) on or before 19.05.2008 and also submits the proposals for liquidating the balance liability, within a further period of four months thereafter, the first respondent bank, which is primarily intending and interested in recovering the entire liability, would do well not to finalise the sale of the asset in favour of any third party. For any reason, if the petitioner commits default in paying Rs.30.00 lakhs on or before 19.05.2008 and also fails to submit the proposal for liquidating the balance outstanding liability within a further period of four months thereafter, it will be open to the first respondent bank to proceed further in the matter from the stage where it had stopped pursuant to the sale notice, dated 01.03.2008, and realize the entire liability. With this, the writ petition stands disposed of at the admission stage. No costs. ______________________________ NOOTY RAMAMOHANA RAO, J Date: 25.03.2008 va