IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY SIXTH 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 : 25664 of 2008 Between: 1 Maddu Veera Venkata Subba Rao S/o Ramakrishna Rao Male H.No.19/70 Rajeswarai Talkies Road Janagareddygudem W.G District 2 Maddu Veera Venkata Ramana S/o Ramakrishna Rao Male H.No.19/70 Rajeswarai Talkies Road Janagareddygudem W.G District ..... PETITIONER(S) AND 1 The Authorized Officer Cum-Chief Manager Andhra Pradesh Jangareddygudem Branch W.G District 2 The Manager Andhra Bank Jangareddygudem Branch W.G District .....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 to issue a writ order or direction more particularly one in the nature of writ of Mandamus declaring the action of the Respondents in insisting the petitioners to vacate from their building property bearing Door No.9-76 Main Road jangareddigudem W.G District without passing any order u/s 13(A) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 and notice dt 27-08-2008 issued by the 1st respondent as illegal, irregular arbitrary without jurisdiction violative of the said Statute and Articles 14,21 and 300-A of the Constitution of India and consequently direct the respondents not to dispossess the petitioners from the said building property and pass Counsel for the Petitioner: MR.NIMMAGADDA SATYANARAYANA Counsel for the Respondent No.: The Court made the following : ORDER: (Per Sri Justice GHULAM MOHAMMED) This Writ Petition has been filed seeking writ of Mandamus declaring the action of the respondents in insisting the petitioners to vacate their building property bearing Door No. 9-76, Main Road, Jangareddigudem, West Godavari District without passing any order under Section 13 (3A) of the SRFAESI Act 2002 (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest) (for short ‘the Act’) and notice dated 27.8.2008 issued by the first respondent under Section 13(2) of the Act as illegal and arbitrary. Brief facts of the case are that both the petitioners herein availed credit facility of secured over draft for a limit of Rs. 3 lakhs each, during the year 2006 for the purpose of running their coconut business from the second respondent-Bank. It is stated that as market condition of coconuts was in slump and resulted in huge losses, petitioners could not repay the amount borrowed from the second respondent-Bank. Hence, the respondent-Bank issued notice dated 27.8.2008 under Section 13(2) of the Act asking the petitioners to pay Rs. 2,94,274.50 and 2,60,848.50 respectively, within 60 days there from, else to invoke the provisions of the Act for recovering the amounts. Immediately after receiving the notices, the petitioners stated to have addressed the respondents to give time up to 31.3.2009 for repayment of entire loan amount, in vain. Hence, the present Writ Petition. The learned counsel appearing for the petitioners contended that the respondents have not initiated proceedings under Section 13(4) of the Act and that without passing order under Section 13(3A) of the Act, respondents could not proceed further in the matter. He further contended that if the respondents implement their action under Section 13(2) of the Act petitioners would be deprived of their livelihood since they are doing coconut business. This Court while issuing notice before admission on 24.11.2008 granted interim stay of dispossession of the petitioners from the property in question on condition that they deposit a sum of Rs. 2,00,000/- within a period of two weeks from that date. It is stated that the conditional order passed by this Court has been complied with by the petitioners. As it is stated that there is no order passed under Section 13(4) of the Act as of now and the petitioners are poor farmers and they are depending on their livelihood and complied with the conditional order passed by this Court by depositing Rs. 2,00,000/- and payable amount is only Rs. 94,274/-. In the circumstances, we hereby grant two months time to the petitioners to pay the entire balance amount to the respondent-Bank. On such receipt of the balance amount of Rs. 94,274/- from the petitioners, the respondent-Bank shall not proceed further. With the above observation, the Writ Petition is disposed of. There shall be no order as to costs. _____________________________ GHULAM MOHAMMED, J ______________________________ VILAS V. AFZULPURKAR, J Dt. 26.06.2009 KA ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1. 2 CD copies