THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION No. 17212 of 2008 DATE: 22.12.2009 Between: Smt. Siripurapu Mani D/o Kannayya ..... PETITIONER AND The State Bank of India, represented by Authorized Officer, Visakhapatnam .....RESPONDENT ORDER: (Per Hon'ble Mr.Justice Ghulam Mohammed) This Writ Petition is filed seeking to call for the records with regard to orders dated 3.6.2008 passed in Appeal No. 729/2007 on the file of Debt Recovery Appellate Tribunal, Chennai, confirming the order dated 12.10.2007 passed by the Debts Recovery Tribunal, Visakhapatnam, in I.A. No. 627 of 2007 in S.A.No. (UN) and quash the same as illegal and arbitrary. Brief facts of the case are that the petitioner is the absolute owner and possessor of the house property constructed in an extent of 2000 square yards in Plot No. 90 situated in S.Nos. 100/4A, 100/10B, 100/5A, 100/13B, 100/8A, 100/4C, 100/12B, 103/7, 103/4, 103/9, 103/14, 100/7B, 100/5E and 103/10 Part in VUDA approved L.P. No. 87/2002 situated in Chinnamushidivada Village, Pendurti Mandal, Visakhapatnam District by obtaining a loan of Rs. 5,00,000/- in the respondent-Bank agreeing to repay the same with 9% interest with EMI amount of Rs. 6,400/- commencing from 5.8.2003. As the petitioner committed default in repaying the loan amount in monthly instalments as agreed, the respondent-Bank initiated recovery proceedings under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short “the SRFAESI ACT”) calling upon the petitioner to repay the amount of Rs. 5,36,514.78 ps along with interest with effect from 30.11.2004. After that the petitioner paid Rs. 25,000/- on 27.4.2005, Rs. 75,000/- on 7.5.2005, Rs. 20,000/- on 19.5.2005, Rs. 50,000/- on 28.3.2006, Rs. 8,000/- on 14.12.2006 and Rs. 8,000/- on 17.11.2006 totalling an amount of Rs. 1,86,000/-. It is stated that questioning the proceedings issued by the respondent-Bank, petitioner filed S.A (un numbered) along with a condone delay application I.A.No. 627 of 2007 before the Debts Recovery Tribunal, Visakhapatnam, seeking for condonation of delay of 150 days in filing the appeal under Section 17 of SRFAESI Act and the same was dismissed by the Tribunal on 12.10.2007. Aggrieved by the same, petitioner filed an appeal S.A No. 729 of 2007 before the Debts Recovery Appellate Tribunal, Chennai and the Appellate Tribunal also dismissed the appeal by an order dated 3.6.2008. Hence, the present Writ Petition. A counter affidavit has been filed on behalf of the respondent-Bank stating that as the petitioner committed default in repaying the loan, the Bank initiated recovery proceedings under the provisions of SRFAESI Act. It is stated that a demand notice under Section 13(2) was issued on 3.12.2004 calling upon the petitioner to repay the outstanding loan amount of Rs. 5,36,514-78 together with interest from 30.11.2004. The said demand notice was received by the petitioner and failed to repay the loan amount within 60 days. Therefore, the Bank issued possession notice dated 1.3.2005 under Section 13(4) of the SRFAESI Act and the petitioner requested time till 28.5.2005 and filed Securitisation application before the Debts Recovery Tribunal, Visakhapatnam along with I.A No. 627 of 2007 the same was dismissed and aggrieved by the same, he also filed an appeal No. 729 of 2007 on 3.6.2008 an the same was also dismissed. It is also stated that if the interim stay granted on 17.9.2008 by this Court is not vacated, the respondent-Bank will suffer grave and irreparable loss. We have heard the learned counsel appearing for both sides. This Court while giving notice to respondents, granted interim stay on 17.9.2008 on condition of the petitioner depositing Rs. 1,50,000/- on or before 13.10.2008. Now the respondent-Bank filed a vacate stay petition WVMP No. 2768 of 2009 for vacating the interim order granted by this Court on 17.9.2009. It is stated that the conditional order passed by this Court on 17.9.2008 is complied with and out of Rs. 1,50,000/- an amount of Rs. 1,00,000/- deposited by the petitioner is kept under STDR No. 198297 dated 22.10.2008 and Rs. 50,000/- under STDR No. 198307 dated 17.9.2008 and if the interim stay is not vacated, the respondent-Bank will suffer irreparable loss. Since the Bank has sold the property to the auction purchaser and the auction purchaser has already liquidated some of the liability, we hereby direct the petitioner herein to return the amount of Rs. 1,80,000/- to the auction purchaser-second respondent herein along with interest at the rate of 12% per annum from the date of deposit till the date of payment. The petitioner shall pay the balance amount if any and also interest at 9% on the remaining amount and on such, the respondent-Bank is directed to deliver the title deeds to the petitioner. Accordingly, the Writ Petition is disposed of and the auction is set aside. There shall be no order as to costs. _________________________ GHULAM MOHAMMED,J _______________________________ NOOTY RAMAMOHANA RAO,J Dt: 22.12.2009 KA ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1. 2 CD copies.