THE HON'BLE SRI JUSTICE N.V. RAMANA & THE HON'BLE SRI JUSTICE P. DURGA PRASAD W.P.NO.24106 OF 2011 & WPMP No.33513 of 2011 Dated: 10.10.2011 Between: M/s Vijayalakshmi Enterprises rep., by its Managing Partner ..Petitioner And HDFC Bank Limited, rep., by its Authorized Officer and others. .. Respondents This Court made the following: THE HON'BLE SRI JUSTICE N.V. RAMANA & THE HON'BLE SRI JUSTICE P. DURGA PRASAD W.P.NO.24106 OF 2011 & W.P.M.P. No.33513 of 2011 ORDER: (Per Hon’ble Sri Justice N.V. Ramana) This writ petition is filed seeking to declare the action of the respondents in initiating the proceedings under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and conducting auction of the property bearing Door No.16-2-13, Rice Mill (with machineries) admeasuring 2686.36 sq. yards situated at Kabaddi street, Ward No.14, Peddapuram Municipal Area, Peddapuram, East Godavari District, on 29.7.2011 as illegal and arbitrary and consequently, to set aside the same. The case of the petitioner is that it was sanctioned cash credit facility of Rs.30,00,000/- on mortgage of plant and machinery of rice mill and land admeasuring 2686.36 sq. yards at Peddapuram, East Godavari District. The petitioner-firm being unable to pay the instalments regularly approached the respondent-Bank and requested for one time settlement and to give consent for sale of the rice mill in open market. But the respondent-Bank without following due process of law initiated proceedings under the Act and conducted auction on 29.7.2011 and sold the properties to the 3rd respondent. Aggrieved by the same, the petitioner filed S.A.No.161 of 2011 before the Debt Recovery Tribunal, Visakhapatnam and also moved an application in I.A.No.361 of 2011 not to confirm the sale in favour of the 3rd respondent pursuant to the auction conducted on 29.7.2011. The Tribunal posted the matter to 22.9.2011 without passing any orders on the application. Hence the present writ petition. On 26.8.2011, while ordering notice before admission, this Court granted interim stay of all further proceedings pursuant to the auction notice dated 29.7.2011 subject to the condition of the petitioner-firm depositing a sum of Rs.20,00,000/- with the respondent- Bank within a period of four weeks. It was also made clear that in case the amount is not deposited by the petitioner, the respondent-Bank is entitled to proceed with the finalization of the auction proceedings. Now, the learned Counsel for the petitioner filed WPMP No.33513 of 2011 seeking extension of time for a period of three weeks, for compliance of the conditional order dated 26.8.2011. The learned Counsel for the respondent-Bank sought to file a counter- affidavit. In the circumstances of the case and taking into consideration the fact that the petitioner has already filed an appeal before the Debt Recovery Tribunal and the same is pending, instead of keeping the writ petition pending, we feel it appropriate to extend the time for a period of three weeks from today to comply with the conditional order dated 26.8.2011. On compliance of the conditional order, the interim stay granted by this Court on 26.8.2011 shall continue till disposal of the appeal pending before the Tribunal. In default, the respondent- Bank is entitled to proceed with the finalization of the auction proceedings. With the above direction, the writ petition is disposed of and WPMP No.33513 of 2011 is ordered. No order as to costs. __________________ Justice N.V. Ramana DATE: 10.10.2011 ____________________ Justice P. Durga Prasad nn THE HON'BLE SRI JUSTICE N.V. RAMANA & THE HON'BLE SRI JUSTICE P. DURGA PRASAD W.P.NO.24106 OF 2011 & WPMP No.33513 of 2011 (Order delivered by the Hon’ble Sri Justice N.V. Ramana) 10.10.2011 Nn