IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO. 27585 OF 2008 Between: M/s Surya Lakshmi Steels P Limited represented by its Managing Director ..... PETITIONER AND 1 The Andhra Bank represented by its Chief Engineer and Authorized Officer, Special Asset Recovery management Branch, and three others .....RESPONDENT(S) the Court made the following order: COMMON ORDER: (Per Sri Justice GHULAM MOHAMMED) This Writ Petition has been filed seeking to declare the sale notice dated 18.11.2008 issued by the first respondent under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ‘the SRFAESI Act’) as illegal and arbitrary and consequently to set aside the sale notice dated 18.11.2008. Brief facts of the case are that the petitioner approached the 2nd respondent-Bank for grant of loan for an amount of Rs. 60.00 lakhs and after completing the due process the 2nd respondent sanctioned loan for an amount of Rs. 40.00 lakhs on 10.1.2004 in favour of his small scale industry after entering into an agreement on 27.2.2004 by mortgaging the property. As the petitioner admitted that he cannot repay the loan and could not relocate the unit, the respondent-Bank published the sale notice in Deccan Chronicle newspaper on 19.11.2008 bringing the petitioner’s property for public auction proposing to hold the auction on 22.12.2008. It is stated that the account of the petitioner became ‘Non Performing Asset’ and therefore, notice under Section 13(2) of the SRFAESI Act was issued on 30.10.2005 and possession of the property was taken on 29.5.2006 under Section 13(4) of the SRFAESI Act. The Bank filed O.A.No. 129 of 2007 before DRT, Hyderabad for recovery of Rs. 48.13 lakhs and the present liability is Rs. 58.40 lakhs. The said O.A was allowed on 21.5.2008 and Recovery Certificate was also issued on 16.6.2008 for Rs. 54.10 lakhs. This Court while admitting the Writ Petition granted interim stay, which reads as under: “There shall be interim stay of the proposed auction of the petitioners’ property on 22.12.2008 on condition of the petitioner depositing an amount of Rs. 5,00,000/- (Rupees Five Lakhs Only) within a period of two weeks from today. As it is represented by the learned counsel for the 4th respondent that the award would be passed within a period of one week, the petitioner is hereby directed to pay the balance amount from out of the amount which he is entitled under the Land Acquisition proceedings.” It is submitted that the petitioner has not complied with the conditional order passed by this Court. He contended that the land was acquired by the Government and he has not received any amount as compensation and, therefore, he is facing financial crises. Petitioner also submits that he may be given an opportunity to enable him to clear off his dues. As the respondent-Bank has obtained decree, we deem it appropriate to direct the petitioner to make an application to the Bank, seeking for one time settlement or waiver of interest, within a period of two weeks from the date of receipt of a copy of this order and on such representation being made, the respondent-Bank shall consider and dispose of the same within a period of four weeks thereafter and communicate the same to the petitioner. On such communication being received, the petitioner shall clear off the debt within two months thereafter. Till such time, respondents shall not take any coercive steps. Accordingly, the Writ Petition is dismissed. There shall be no order as to costs. _____________________________ GHULAM MOHAMMED, J ______________________________ VILAS V. AFZULPURKAR, J Dt. 31.07.2009 KA ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1. 2 CD Copies