IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY FIRST DAY OF NOVEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE GOPALA KRISHNA TAMADA WRIT PETITION No.25493 of 2008 Between: Shaik Shamshad Begum W/o.Shaik Hameed Hussain residing at D.No.1-2336, MIGH 8B, Housing Board Colony, Kadapa, Kadapa District. ..... PETITIONER AND 1 Rayalaseema Grameena Bank (Main) now called as Andhra Pragathi Grameena Bank, rep. by its Branch Manager, near Krishna Theatre, Kadapa, Kadapa District. 2 Regional Manager & Recovery Officer, Rayalaseema Grameena Bank, now called as Andhra Pragathi Grameena Bank, sponsored by Syndicate Bank, Kagitala Penta, Kadapa. .....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 a Writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondents in initiating action under Section 13(2) and Section 13(4) of the Act after electing to file O.S.No.190 of 2006 on the file of the Court of the Senior Civil Judge, Kadapa, and in spite of the petitioner promising to pay the amount after the receipt of the amount from the Corporation as illegal, arbitrary and capricious and consequently direct the respondents to drop the proceedings. Counsel for the Petitioner: MR.VL.N.G.KMURTHY Counsel for the Respondents: Sri K.Srinivasa Murthy (Standing Counsel) The Court made the following : THE HON'BLE MR JUSTICE GOPALA KRISHNA TAMADA WRIT PETITION No.25493 of 2008 ORDER: Petitioner had obtained a loan of Rs.3,00,000/- from the 1st respondent-Bank on 14.08.2004, agreeing to repay the same in 60 equal monthly instalments of Rs.6,830/-, commencing from 10.09.2004, for the purpose of her husband running a litigation against A.P. State Civil Supplies Corporation, who did contract work for the Corporation. Petitioner states that her husband sustained loss in the business and could not pay the instalments, that the said Corporation has to pay an amount of Rs.65 lakhs to her husband, and for recovery of the same, necessary proceedings were also initiated, and thus she requested the 1st respondent Bank to grant some time to repay the loan amount. Her grievance is that without considering her request, the 1st respondent filed O.S.No.190 of 2006 on the file of the Senior Civil Judge, Kadapa, for recovery of the said amount. During the pendency of the said suit, the 2nd respondent issued a notice dated 31.12.2007, under Section 13(2) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002, calling upon the petitioner to repay the loan amount, and the petitioner gave reply to that notice. Despite the same, the 2nd respondent issued possession notice to the petitioner on 05.11.2008 under Section 13(4) of the said Act. Aggrieved thereby, she filed this writ petition seeking a declaration that the action of the respondents in initiating action under Section 13(2) and 13(4) of the said Act after filing O.S.No.190 of 2006 in spite of the petitioner promising to repay the loan amount is arbitrary and illegal and also for a consequential direction to the respondents to drop the proceedings initiated against the petitioner. Heard Sri V.L.N.Gopala Krishna Murthy, learned counsel appearing for the petitioner and Sri K.Srinivasa Murthy, learned Standing Counsel appearing for the respondents. Petitioner admits her liability to the respondents, but seeks time to deposit the amount demanded by the respondents. Therefore, without going into merits of the case, this Court grants time till 20.02.2009 to the petitioner to deposit the entire amount demanded by the respondents with interest accrued as on that date. If the petitioner fails to deposit the amount, as indicated above within the period stipulated, it is needless to observe that respondents shall be at liberty to proceed against the petitioner in accordance with law. With the above observations, the writ petition is disposed of, at the stage of admission. There shall be no order as to costs. _______________________________ (Justice Gopala Krishna Tamada) 21st November 2008 sh To 1 The Branch Manager, Rayalaseema Grameena Bank (Main) now called as Andhra Pragathi Grameena Bank, near Krishna Theatre, Kadapa, Kadapa District. 2 Regional Manager & Recovery Officer, Rayalaseema Grameena Bank, now called as Andhra Pragathi Grameena Bank, sponsored by Syndicate Bank, Kagitala Penta, Kadapa. 3 2CD copies.