IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) SUNDAY, THE SEVENTH 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 : 753 of 2009 Between: 1 M/s. Anuradha Estates, Dr. Mrs. R. Ratna Kumari W/o. Dr. R. Satyanarayana, R/o. Pent House, Anuradha Apartments, 3-4-874, Barkathpura, Hyderabad. 2 M/s. Anuradha Estate Rep. by its Chief Executive Dr. R. Satyanarayana S/o. Brahmaiah, R/o. Pent House, Anuradha Apartments, 3-4-874, Barkathpura, Hyderabad. 3 Mrs. S. Padmavathi, D/o. R. Satyanarayana, R/o. Pent House, Anuradha Apartments, 3-4-874, Barkathpura, Hyderabad. ..... PETITIONER(S) AND The Chief Manager/Authorized Officer, Indian Bank, Asset Recovery Management Branch, IV Floor, Liberty Plaza, Himayathnagar, Hyderabad. .....RESPONDENT 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 to issue a writ order or direction more one in the nature of Writ of Certiorari, Calling for the Records relating to Proceedings of Tender Sale of Personal Properties based on Demand Notice dated 30-6-2008 and Possession Notice dated 21-11-2008 of the respondent and Quash the same and pass Counsel for the Petitioner:MR.K.SAI KRISHNA MOHAN RAO Counsel for the Respondent No.: MR.AMBADIPUDI SATYANARAYANA The Court made the following : THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR W.P.No.753 of 2009 ORDER: (Per Ghulam Mohammed, J) This writ petition is filed for a writ of Certiorari calling for the records relating to proceedings of Tender Sales of Personal Properties based on demand notice dated 30.6.2008 and possession notice dated 21.11.2008 of the respondent bank and to quash the same. 2. The first petitioner is a firm, namely, Anuradha Estate and it has secured a loan of Rs.70 lakhs in the year 1989 from Indian Bank, Barkatpura Branch, Hyderabad by mortgaging the properties, bearing flat Nos.403-B, 403-A and Garage/Flat No.G.11 to 14, Anuradha Apartments, premises No.3-4-874, Barkatpura, Hyderabad. As the petitioners committed default in repaying the loan amount, the loan became a Non-Performing Asset under Reserve Bank of India guidelines. The respondent Bank has obtained exparte orders from Debt Recovery Tribunal, Hyderabad in O.A.No.716 of 2001 (Old O.A.No.83 of 1997- DRT, Bangalore). The respondent Bank got issued a notice through Recovery Officer in R.P.No.84 of 2005 in O.A.No.716 of 2001 with regard to personal properties and the matter is pending with the Recovery Officer. While so, the respondent Bank issued demand notice dated 30.6.2008 under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002 (for short ‘the Act’) to repay the amount of Rs.29,85,04,904.09ps (Rupees Twenty nine crores, eighty five lakhs, four thousand nine hundred and four and paisa nine only) due as on 30.06.2008 within 60 days from the date of notice. The petitioners have neither paid the amount nor did they give any reply to the said notice. Thereafter, the respondent Bank issued a possession notice dated 21.11.2008 and possession of the mortgaged property, as described in the 13(2) notice was taken in exercise of powers conferred under Section 13 (4) of the Act. Basing on the above notices, the respondent bank initiated tender proceedings for sale of the mortgaged properties. 3. A counter affidavit is filed by the respondent Bank stating that the petitioners have to pay huge amount as mentioned in the notice dated 30.6.2008 and as against the liability, the respondent Bank has given substantial concession to the petitioners by accepting the one time settlement amount of Rs.230 lakhs and the same was not paid by the petitioners and the petitioners have been evading the payment to the respondent Bank on one pretext or other and are not allowing the respondent Bank to proceed with sale of the mortgaged property by filing petitions before the Recovery Officer in the RP proceedings before the Debt Recovery Tribunal and that huge amount is held up in Non-performing Asset account of the respondent Bank and as such, petitioners are not entitled to claim any relief. 4. Heard the learned counsel on either side and perused the record. It is seen that the petitioners secured loan from the respondent Bank in the year 1989 and thereafter they have committed default in repaying the loan amount. Thereafter, the respondent Bank has sanctioned one time settlement (OTS) and as per the terms of the OTS, the petitioners have to pay Rs.230 lakhs on or before 15.3.2007, but they failed to pay the said amount within the prescribed period and the OTS stood cancelled. The loan account has been classified as Non-performing Asset. The respondent Bank issued notice under Section 13(2) of the Act to repay the loan amount due as on 30.06.2008, but the petitioners did not pay the loan amount. Thereafter, the respondent Bank issued possession notice dated 21.11.2008 and possession of the mortgaged property was taken and further, proceedings for sale of the property was initiated. In the circumstances, we do not find any infirmity in the action of the respondent bank for recovery of the loan amount. 5. The writ petition is dismissed. However, the petitioners are at liberty to avail the alternative remedy before the appropriate forum. No costs. _____________________ GHULAM MOHAMMED,J _____________________ VILAS V. AFZULPURKAR,J 06-07-2009 Stp ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1) 2 CD copies Form-NIC-OGS/WP{SPJS}