IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE NINTEENTH DAY OF JUNE TWO THOUSAND AND NINE PRESENT THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO : 118 of 2007 Between: 1 Mohd. Mahaboob Ali, S/o. Late Mohd. Basha, Chodavaram, R/o. Pitapuram, East Godavari District. 2 Smt. Meheer Haseen, W/o. Mahaboob Ali, R/o. Pitapuram, East Godavari District. ..... PETITIONER(S) AND 1 The Indian Overseas Bank, Rep by its Authorized Officer / Sale Officer, Pitapuram, East Godavari District. 2 The Indian Overseas Bank, Rep by its Branch Manager, Pitapuram, East Godavari District. 3 The Indian Overseas Bank, Rep by its Regional Manager, Visakhapatnam, Visakhapatnam District. .....RESPONDENT(S) 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 a writ order or direction more particularly one in the nature of writ or Mandamus declaring the action on the part of the respondent in issuing auction notice which is published on 4-12-2006 by fixing auction schedule dated 9-1- 2007 at 11-00 am in the respondents branch and proposed sell residential house bearing old D.No.11-340/- New D.No.11-3-40/1 situated at Usthad Street, Pitapuram Town East Godavari Dist without considering the case of the petitioner amounts to erroneous arbitary and violative of Articles 14 and 21 of the constitution of India and also violative principle of natural justice besides being the provisions contemplated under Securitization Act and consequently set aside the sale scheduled to be fixed on 9-1-2007 at 11-00 am or any other subsequently date and to pass necessary order or orders as this Hon'ble court may deem fit. Counsel for the Petitioner:MR.T.C.KRISHNAN Counsel for the Respondent No.: . The Court made the following : THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR W.P.No.118 of 2007 ORDER: (Per Ghulam Mohammed, J) This writ petition is filed seeking a writ of Mandamus to declare the action of the respondents in issuing auction notice published in news paper on 04.12.2006 by fixing auction on 9.1.2007 at 11.00 am for sale of residential house bearing Old D.No.11-3-40, New D.No.11-3-40/1 situated at Usthad Street, Pitapuram Town, East Godavari District, as illegal and arbitrary and consequently set aside the auction notice. 2. The petitioners availed loan of Rs.6.04 lakhs from the respondent Bank under Subha Gruha Scheme vide Loan No.3504 by mortgaging property bearing D.No.11-3-40/1 situated at Usthad Street, Pitapuram Town, East Godavari District. The loan was sanctioned on 13.1.2004 and it has to be repaid in 120 Equal Monthly Instalments, which would be completed on 12.1.2014. The petitioners repaid the loan nearly Rs.1,23,406/-. In the year 2004, the first petitioner fell ill by suffering back pain and has undergone Spnac Disc Surgery on 9.6.2006 and he spent huge amount towards medical treatment and he could not pay the instalments. In the meanwhile, the respondent Bank has issued notice dated 15.5.2006 under Section 13 (2) of the Act to repay the entire loan amount within a period of 60 days. The petitioners have not given any reply to the said notice. The respondent Bank has issued auction notice dated 4.12.2006 in the news paper by fixing auction on 9.1.2007.Aggrieved by the said notification, the present writ petition is filed. 3. The learned counsel for the petitioners submits that the first petitioner had undergone Spnac Disc Surgery and incurred huge expenditure towards medical treatment, as such, he could not repay some instalments. The learned counsel for the petitioners further submits that the first petitioner is an employee and he was placed under suspension. 4. We have perused the record. The first petitioner has suffered back pain and he incurred expenditure towards medical treatment. Further he is an employee and was placed under suspension. The petitioners have deposited Rs.1,50,000/- pursuant to the direction of this court on 07.06.2007 within the stipulated period and they have paid some instalments. Thereafter, they could not pay some instalments due to ill health of the first petitioner. Once the petitioners committed default, the bank is entitled to recover the entire amount. But however, having regard to the facts and circumstances of the case, we deem it appropriate to grant six months time to clear off the entire loan amount. 5. Hence, the writ petition is disposed of. The petitioners are directed to repay the entire balance loan amount to the respondent Bank within a period of six months from today, failing which the respondent Bank is at liberty to take necessary action permissible under law. No costs. _____________________ GHULAM MOHAMMED,J _____________________ VILAS V. AFZULPURKAR 19-06-2009 Stp ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1) 2 CD copies Form-NIC-OGS/WP{RLD}