THE HON'BLE SRI JUSTICE A.GOPAL REDDY and THE HON'BLE SRI JUSTICE NOUSHAD ALI W.P.No.20466 of 2009 ORDER: (Per Hon’ble Sri Justice A.Gopal Reddy) This writ petition is filed apprehending that the respondent-Bank may recover the amounts due from the petitioner by appointing the third respondent as its Agent, and the same is arbitrary and illegal. The petitioner, while working as Branch Manager in the office of the second respondent, has availed a housing loan to the tune of Rs.4,00,000/- from the respondent-Bank. Subsequently, for the proven misconduct, he was removed from service. Questioning the said removal, he filed W.P.No.10876 in 2004 and the same is pending before this Court. According to the petitioner, till the date of removal, he paid an amount of Rs.1,35,578/-, and thereafter, NIT Arrears of Rs.59,535/- were also credited into the loan account. Thereafter, he could not repay the instalments due to financial difficulties. Therefore, the second respondent initiated recovery proceedings by invoking the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as ‘the SARFAESI Act’) and issued demand notice dated 10.12.2007 under Section 13(2) of the SARFAESI Act requiring the petitioner to pay a sum of Rs.4,65,536.12 paise said to be outstanding inclusive of interest upto 31.03.2007. The petitioner made a representation to the second respondent on 12.02.2008 stating that the order of his removal from service is pending before this Court and therefore, requested to keep the proceedings initiated under the SARFAESI Act in abeyance till a decision is taken by this Court in the said writ petition. However, the first respondent rejected the said request made by the petitioner and issued another demand notice dated 08.07.2008 demanding a sum of Rs.4,89,339.12 paise inclusive of interest upto 31.03.2008. Subsequently, the second respondent issued possession notice under Rules 8(1) and (2) of Security Interest (Enforcement) Rules, 2002 taking symbolic possession of the house. The petitioner made another representation to the first respondent-Bank requesting that the terminal benefits due to him have not been released. Thereafter, on 22.08.2009, he made a representation to the second respondent to stop the proceedings to recover the loan amount under the SARFAESI Act and also paid an amount of Rs.80,000/- on the same day towards loan amount. While so, he learnt that respondents 1 and 2 have appointed the third respondent as collection Agent for recovery of the outstanding amounts from him. Questioning the same, the present writ petition is filed. The petitioner produced a letter dated 17.12.2009 issued by the first respondent advising the petitioner to submit the claim in the prescribed format immediately to enable them to consider the same. In view of the same, on filing the prescribed format by the petitioner for release of the terminal benefits and adjusting the same to the loan account, the respondent-Bank is directed to adjust the terminal benefits, if any, due to the petitioner towards loan account and can recover the balance amount in accordance with law. The writ petition is accordingly disposed of. There shall be no order as to costs. __________________ A.GOPAL REDDY, J. __________________ NOUSHAD ALI, J. Dt.18.01.2010 va