IN THE HIGH COURT OF JUDICATURE OF ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY THE THIRD DAY OF NOVEMBER TWO THOUSAND AND SEVEN :PRESENT: THE HON'BLE SRI JUSTICE L.NARASIMHA REDDY WRIT PETITION NO : 15340 of 2007 Between: 1 S.Surender, S/o.Late Narsimulu, R/o. H.No. SRT/33,Vidyanagar,Hyd. 2 E.Yadagiri, S/o. Late Govinda Swamy, R/o.H.No.1-7- 1069,R.T.C,X Road, Hyderabad. ..... PETITIONERS AND 1 The Charminar Urban Co.operative Bank, Rep.by its General Manager Purani Haveli Hyderabad. 2 The Manager, The Charminar Urban Co.operative Bank,Purani Haveli Hyderabad. 3 The Registrar of Co.operative Societies, State of A.P, Gruhakalpa, M.J.Road,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 may be pleased to issue an appropriate writ, order or direction more particularly one in the nature of writ of Mandamus under Article 226 of the Constitution of India declaring the action on the part of the respondents No. 1 and 2 for erection of the board notifying as if the petition schedule properties are mortgaged without putting the petitioners on notice in the land in their possession in Plot Nos. 63 & 64 admeasuring 200Sq. yards out of 600 Sq. yards and plot No. 53 admeasuring 200 Sq. yards out of 300 Sq. yards situated in Sy. No. 159 part of Saheb Nagar, Kalan village, Hayathnagar Mandal, Ranga Reddy District as being discriminatory, arbitrary, void, illegal and violative of right to freedom and violative of Right to live as embodied in Articles 14,15,16,19 and 21 of the Constitution of India and consequently direct the respondent No. 3 herein to cause an enquiry into the fraud or otherwise into the scandal in respect of schedule property The petition coming on for hearing, upon perusing the petition and the affidavit filed herein and the order of the High Court dated 19-07-2007 made herein and upon hearing the arguments of Sri S. Tulasi Das Advocate for the Petitioners and of Sri Abhinand Kumar Shavali S.C for Charminar Co.op. Bank for the Respondents 1 & 2 and of the G.P. for Co-operative Societies for the Respondent No. 3 the Court made the following: ORDER: This case furnishes an example as to how the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 have been put to gross misuse by unscrupulous financial agencies and irresponsible creditors. -2- The petitioners purchased plots of 200 square yards each in Survey No. 159 of Saheb Nagar Kalan Village, Hayathnagar Mandal, Ranga Reddy District from one Sri Abdul Aziz Haneef, through sale deeds, dated 15-02-1991. However, Sri Abdul Aziz Haneef is said to have offered the plots purchased by the petitioners and other plots, totaling to 1200 square yards, as security for repayment of loan raised by M/s. Zedds Shoes Shop from the first respondent, on 30-6-1998. It does not appear that respondents 1 and 2 have verified the title of the guarantor. Having come to know the steps taken by respondents 1 and 2, the petitioners submitted a representation, dated 13-07-2007, enclosing the sale deeds. Still, respondents 1 and 2 have proceeded to enforce the security under the provisions of the Act. Respondents 1 and 2 are directed to show cause as to why necessary action be not taken for the misuse of the provisions, resorted to by them, including the one at the level of the Reserve Bank of India, by 17-11-2008. Delete from the caption ‘ for dismissal’ and post on 17-11- 2008 ‘ for judgment.’ ASSISTANT REGISTRAR // TRUE COPY // for ASSISTANT REGISTRAR To 1 The General Manager, Charminar Urban Co.operative Bank, Rep.by its General Manager Purani Haveli Hyderabad. 2 The Manager, The Charminar Urban Co.operative Bank,Purani Haveli Hyderabad. 3. The Registrar of Co.operative Societies, State of A.P, Gruhakalpa, M.J.Road,Hyderabad. 4. 1 c.c. to Sri S. Tulasi Das Advocate (OPUC ) 5.2 C.C. to G.P. for Co-operation Society High Court of A.P. Hyd (O.UT ) 6. 1 spare copy. HIGH COURT LNR.J DATED 3-11-2008 POST ON 17-11-2008 FOR JUDGMENT ORDER W.P.NO. 15340 OF 2007 DIRECTION Bsr Dt. 5-11-2008 HIGH COURT LNR.J DATED 3-11-2008 POST ON 17-11-2008 FOR JUDGMENT ORDER W.P.NO. 15340 OF 2007 DIRECTION