IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE THIRTIETH DAY OF MARCH TWO THOUSAND AND NINE PRESENT THE HON'BLE MR JUSTICE V.ESWARAIAH & THE HON'BLE MR JUSTICE SANJAY KUMAR WRIT PETITION No.6568 of 2009 Between: Subhakaran Agarwal S/o. Atam Ram R/o. D.No. 15-1-475/1, Old Feelkhana Hyderabad. ..... PETITIONER AND Andhra Pradesh State Financial Corporation Rep. by its Authorised Office4r, 5-9-194 Chirag Ali Lane, P.B No. 165 Hyderabad. .....RESPONDENT 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 or order or direction more particularly one in the nature of writ of Mandamus declaring the Notice dt. 11-12- 2008 issued under Sec. 13(2) the Securatisation and Reconstruction of Financial Assets and Enforcement of security Interest Act as illegal, arbitrary high handed and violative of Articles 14 and 300-A of The Constitution of India and consequently set aside the same and to pass Counsel for the Petitioner:MR.R.L.NARASIMHA PHANI Counsel for the Respondent No.: MR.M.S.RAMCHANDRA RAO The Court made the following: Form-NIC-OGS/WP{VSMI} THE HON'BLE MR JUSTICE V.ESWARAIAH & THE HON'BLE MR JUSTICE SANJAY KUMAR WRIT PETITION No.6568 of 2009 ORDER: (per Hon’ble Sri Justice Sanjay Kumar) The petitioner challenges notice dated 11.12.2008 issued by the A.P.State Financial Corporation, Hyderabad, the respondent herein, under Sec.13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as “SARFAESI Act”). The petitioner admits to have availed a term loan of Rs.65.98 lakhs from the respondent Corporation during year 2003. He also admits to have received the notice dated 11.12.2008 issued by the respondent corporation proposing to initiate action for recovery of the amounts due by taking steps against the property given by the petitioner as security for the loan. The said notice also makes it clear that the action was being initiated as the petitioner committed default in repayment and the loan was classified as a non-performing asset (NPA). Consequently, the petitioner along with his sureties were found liable to pay Rs.22.81 lakh as on 30.11.2008 with subsequent interest. The petitioner responded to the said notice under his letters dated 10.01.2009 and 25.02.2009. The said letters do not disclose any objections on the part of the petitioner with regard to the contents of the respondent corporation’s notice. The petitioner seems to have restricted himself only to the issue of seizure charges and car hire charges without addressing the allegations leveled with regard to default in the repayment of the loan. We have heard the learned counsel for the parties. Sec.13(3A) of the SARFAESI Act vests a right in the borrower to make a representation or raise objection to the notice issued under Sec.13(2) and the secured creditor is required to respond to the same by duly considering the representation or objection on its merits and communicate the reasons for non-acceptance of the representation or objection to the borrower, as the case may be. It is clear that the petitioner did not avail this opportunity and has approached this Court directly against the Sec.13(2) notice. We are, therefore, of the opinion that that interest of justice will be served by directing the petitioner to respond to the Sec.13(2) notice dated 11.12.2008 by making his representation/objections thereto, within a period of three weeks from today and the respondent Corporation shall consider the same and pass orders thereupon, in accordance with Sec.13(3A) of the SARFAESI Act. The writ petition is accordingly disposed of. There shall be no order as to costs. _____________________ V.ESWARAIAH,J ____________________________ SANJAY KUMAR,J Dated: 30.03.2009 Dsr .... REGISTRAR // TRUE COPY // SECTION OFFICER To 1 Andhra Pradesh State Financial Corporation Rep. by its Authorised Office4r, 5-9-194 Chirag Ali Lane, P.B No. 165 Hyderabad. 2 2. 2CCs to 3. 2CD copies