IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE TWENTY EIGHTH DAY OF AUGUST TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE B.SESHASAYANA REDDY WRIT PETITION NO : 26629 of 2007 Between: A.V.N.Lakshmi W/o.Varaprasad D./No.2/185, Ward No.2, Gudivada, Krishna District. ..... PETITIONER AND 1 The Zonal Manager, State Bank of Hyderabad, Eluru, West Godavari. 2 The Branch Manager, State Bank of Hyderabad, Eluru Branch, Eluru, West Godavari. 3 Authorised Officer, State Bank of Hyderabad, Eluru Branch, Eluru, West Godavari. 4 Gedala Rama Devi W/o.Ramesh R/o.Satyanarayanapuram, Gudivada, Krishna District. .....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 any writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondents 1 to 3 in invoking the provisions of the Securitization Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 in haste manner by bringing the petitioner's property viz., Flat No. FF 12, D.No. 22B-13-2, First Floor, Venkata Rama Towers, situated at Powerpet, Eluru, West Godavari District to sale as being illegal, arbitrary, unjust, mala ﬁde and contrary to Articles 14 and 300-A of the Constitution of India by setting aside all further proceedings that were initiated against the petitioner's property under the provisions of the Securitization Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 including setting aside of the sale held on 30.11.2007 and to pass such other or further orders. Counsel for the Petitioner: MR.RAVI CHEEMALAPATI Counsel for the Respondents: The Court made the following : ORDER: This writ petition has been ﬁled by A.V.N. Lakshmi, assailing the proceedings initiated by respondents 1 to 3 under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ‘the Securitisation Act’). The petitioner purchased an undivided and unspeciﬁed extent of 15 sq. yards from out of the total extent of Ac.603.2/9 Sq. yards from one Smt. E. Saraswati under a registered sale deed. Later she entered into a development agreement with one Om Sai Chaitanya builders. She was allotted Flat No.F.F.12 at ﬁrst ﬂoor admeasuring 320 sq. feet, which is a single bedroom ﬂat. She obtained a loan of Rs.5,50,000/- from respondents 1 to 3 bank on 25.02.2006 for construction of the ﬂat. She paid an amount of Rs.10,000/- on 6.12.2006 and an amount of Rs.30,000/- on 7.03.2007 towards the loan amount. Since the petitioner failed to pay the instalments, the loan sanctioned to the petitioner came to be treated as non-performing asset, and proceedings under Section 13(2) of the Secutitisation Act came to be initiated. The petitioner made a representation to the Branch Manger, State Bank of Hyderabad on 2.02.2007. An order under Section 13 (4) of the Securitisation Act also came to be passed. When the sale proclamation notiﬁed on 1.11.2007, the petitioner approached this Court assailing the proceedings initiated by respondents 1 to 3 under the provisions of the secuiritisation Act. Notice Before Admission came to be issued on 14.12.2007. On the same day, an interim order came to be passed, which reads as hereunder. “In the light of the facts and circumstances explained, status quo obtaining as on today to be maintained in all material particulars relating to the subject matter dispute, on condition of the petitioner depositing Rs.1,00,000/- (Rupees one lakh only) within a period of six weeks from today.” Respondents 1 to 3 ﬁled counter aﬃdavit. Respondent No.4, who claims to be a purchaser, ﬁled separate counter aﬃdavit. Both the respondents ﬁled vacate stay petitions. More precisely, W.V.M.P.No.2558 of 2008 is ﬁled by the fourth respondent and W.V.M.P.No.1511 of 2008 is ﬁled by respondents 1 to 3. When the vacate stay petitions came up for consideration, with the consent of the parties the writ petition itself is taken up for final disposal. Heard Sri Ravi Cheemalapati, learned counsel appearing for the petitioner, Sri Ch. Ravindra Babu, learned counsel appearing for respondents 1 to 3 and Sri K.V. Subba Reddy, learned counsel appearing for respondent No.4. Learned counsel appearing for the petitioner submits that the upset price of the ﬂat ﬁxed at Rs.5,50,000/- is far below the market value. A further submission has been made that the representation made by the petitioner on 2.02.2007, is pending for consideration and therefore sale proclamation notiﬁed on 1.11.2007 is liable to be set aside. Learned counsel appearing for respondents 1 to 3 submits that the sale has been held and the fourth respondent became the highest bidder, and therefore, the writ petition is liable to be dismissed. The fourth respondent participated in the auction and became successful bidder and sale certiﬁcate also issued in her favour on 15.12.2007. A fact remains that against the order passed under sub-section (4) of Section 13 of the Securitisation Act, the petitioner has an eﬃcacious relief of ﬁling appeal under Section 17 of the Securitisation Act before the Debt Recovery Tribunal. A Division Bench of this Court in K. Balakrishna v. Debts Recovery Tribunal & Ors .[1] held that when the aggrieved party has eﬃcacious relief of ﬁling of an appeal under the provisions of the Securitisation Act, a writ petition is not maintainable. In view of the settled proposition of law, the Writ Petition is dismissed reserving the liberty to the petitioner to ﬁle an appeal before the appropriate forum. _________________________ (B. Seshasayana Reddy, J.) 28th August, 2008 Js. ASSISTANT REGISTRAR // TRUE COPY // SECTION OFFICER To 1 The Zonal Manager, State Bank of Hyderabad, Eluru, West Godavari. 2 The Branch Manager, State Bank of Hyderabad, Eluru Branch, Eluru, West Godavari. 3 Authorised Officer, State Bank of Hyderabad, Eluru Branch, Eluru, West Godavari. 4 2 CD copies. [1] I (2008) BC 447 (D.B.)