IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY NINTH OF JANUARY TWO THOUSAND AND TEN PRESENT THE HON'BLE MR JUSTICE A.GOPAL REDDY and THE HON'BLE MR JUSTICE NOUSHAD ALI WRIT PETITION NO : 614 of 2010 Between: Mohd. Mohiddin ..... PETITIONER AND State Bank of India, Rep. by its Authorised Officer, Stressed Assets, Resolution Centre, Lata Complex, Nampally, Hyderabad & 2 others. .....RESPONDENTS The Court made the following : HON’BLE SRI JUSTICE A. GOPAL REDDY AND HON'BLE SRI JUSTICE NOUSHAD ALI WRIT PETITION No. 614 OF 2010 ORDER: (Per Hon’ble Sri Justice A. Gopal Reddy) Petitioner, who is a third party-purchaser of the secured asset after issuance of the notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ‘Act’) filed this writ petition challenging the auction notice issued by the first respondent-Bank for sale of the mortgaged property. We have heard the learned counsel for the petitioner and learned counsel appearing for the first respondent-Bank. In view of the provision under sub-section (13) of Section 13 of the Act, borrower cannot transfer by way of sale, lease or otherwise any of the secured asset referred to in the notice under Section 13(2) of the Act. But, in the present case, though the petitioner purchased the secured property after issuance of notice under Section 13(2) of the Act, he came forward to liquidate the debt and according to him, he has already deposited a sum of Rs.43,94,700/- at regular intervals to the loan account of the borrower-second respondent herein and undertakes to discharge the remaining loan liability within two months which is agreeable to the learned counsel for the first respondent-Bank. Therefore, considering the facts and circumstances of the case, we direct the first respondent-Bank not to finalise the tenders received by it pursuant to the auction notice on condition of petitioner depositing a sum of Rs.5.00 lakhs within two weeks from today, further sum of Rs.5.00 lakhs by 5th of March, 2010 and the remaining outstanding debt by the end of March, 2010. In default of compliance of any of the conditions as referred to above, it is open to the first respondent-Bank to finalise the tenders and proceed further in accordance with law. The petitioner is restrained from creating any third party rights over the secured property until the loan amount is discharged as undertaken by him. With the above directions, the writ petition is disposed of. No order as to costs. _________________ (A. GOPAL REDDY, J.) _________________ (NOUSHAD ALI, J.) JANUARY 29, 2010 TSR