IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE NINETEENTH DAY OF JUNE TWO THOUSAND AND NINE PRESENT THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO : 25367 of 2007 Between: 1 M/s. Shiva Shakthi AGencies rep by its Prop. R. Nagendra Babu S/o Late Sagar Singh R/o Flat No. C-1, 3rd Floor Sri Padmaja Towers, Crambay Road, Bhavanipuram, Vijayawada-520012. 2 Smt. Rajaputra Padmajabai W/o R. Nagendra babu R/o Flat No. C-1, 3rd Floor Sri Padmaja Towers, Crambay Road, Bhavanipuram, Vijayawada-520012. ..... PETITIONER(S) AND 1 State Bank of Inida, repby its Assistant General Manager, BRP road, Main Branch, Vijayawada-520 001. 2 The Authorised Officer, Stressed Assets Resoulution Centre, Zonal Officer, State bank of India, Suryarao Pet Vijayawada-520002. .....RESPONDENT(S) 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 Respodent in Seizing the permises of the Petitioners situate in R.S. No. 72/2, Bhavanipuram of Vijayawada, with Plinth area of 799 sq. feet, as illegal and ultra vires to the provisions of Article 14 and 21 and 300-A of the Constitution of India, consequently directing to remove the seals and pass such other order or orders as this Hon'ble Court may deem fit and proper inthe circumstancesof the case. Counsel for the Petitioner:MR.V.S.R.ANJANEYALU Counsel for the Respondent : MR.M.NARENDER REDDY FOR R19.12.07,VAK-1&2 The Court made the following : THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR W.P.No.25367 of 2007 ORDER: (Per Ghulam Mohammed, J) This writ petition is filed seeking a writ of Mandamus to declare the action of the respondents in seizing the premises of the petitioners situate in R.S.No.72/2, Bhavanipuram of Vijayawada, with plinth area of 799 square feet, as illegal and arbitrary and consequently direct the respondents remove the seals put on the said premises. 2. The first petitioner was sanctioned a cash credit facility for a sum of Rs.3,00,000/- for the purpose of carrying on business under the name and style M/s.Shiva Shakthi Agencies for which the respondent bank obtained a demand promissory note, an agreement of hypothecation and guarantee on 11.12.2001. The second petitioner has executed a letter of memorandum of deposit of title deeds in favour of the respondent Bank. As the petitioners have committed default in repaying the loan amount, the respondent Bank has filed suit O.S.No.682 of 2004 on the file of the learned I Additional Senior Civil Judge, Vijayawada for recovery of a sum of Rs.3,94,640/- together with interest. The said suit was allowed passing a preliminary decree. The second respondent has issued a notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ‘the Act’) on 14.7.2004 to repay the outstanding loan amount within a period of 60 days. The petitioners neither paid the amount nor did give reply to the said notice. Ultimately, the respondent Bank has issued a notice dated 25.09.2004 under the provisions of the Act and taken symbolic possession of the secured asset. The said notice was published in the daily newspapers on 26.9.2004. Thereafter, as per the orders of the Chief Metropolitan Magistrate, Vijayawada, an Advocate Commissioner was appointed and he delivered the physical possession of the secured asset to the respondent Bank. The petitioners filed appeal S.A.No.85 of 2004 before the Debts Recovery Tribunal, Visakhapatnam and the same was dismissed. Thereafter, the petitioners filed this writ petition and in pursuance of the interim order dated 29.11.2007, the petitioners have deposited a sum of Rs.1,00,000/- and the respondent Bank has redelivered the possession of the secured asset to the petitioners. 3. Heard the learned counsel for the petitioner and the learned counsel for the respondents. 4. We have perused the record. Having regard to the facts and circumstances, since the petitioners have deposited Rs.1,00,000/- as directed by this court within the stipulated time and since the petitioners have requested the respondent Bank that they would repay the entire balance loan amount under One Time Settlement scheme within a period of three months, we deem it appropriate to grant three months time to the petitioners to repay the entire balance loan amount. 5. Hence, the writ petition is disposed of. The petitioners are hereby granted three months time to pay the entire balance amount to the respondent Bank, failing which the respondent bank is at liberty to take necessary action under the Act. No costs. _____________________ GHULAM MOHAMMED,J _____________________ VILAS V. AFZULPURKAR 19-06-2009 Stp ` ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1) 2 CD copies Form-NIC-OGS/WP{TRT}