THE HON'BLE SRI JUSTICE GHULAM MOHAMMED AND THE HON’BLE SRI JUSTICE K.G.SHANKAR WRIT PETITION NO.20557 OF 2011 ORDER: The petitioners filed this Writ Petition under Article 226 of the Constitution of India, inter alia, seeking Writ of Mandamus declaring the proclamation of sale notice dated 14.06.2011 issued by the third respondent proposing to sell the properties of the petitioners i.e., residential urban vacant land to an extent of Ac.1.00 and 0.59 cents in R.S.No.318/1 situated in Rajahmundry Municipal Corporation Limits, East Godavari Diistrict, by fixing the reserve price without taking into consideration of the market value of the abovementioned properties, as illegal and arbitrary and consequently, to set aside the proclamation of sale notice dated 14.06.2011. The facts of the case, in brief, which are necessary for disposal of this Writ Petition, are that on 27.06.2000, the first petitioner obtained loan of Rs.16,00,000/- from the first respondent-Bank after executing necessary loan documents and security agreement by creating mortgage of immovable property i.e., vacant land owned by the petitioners situated in R.S.No.318/1 to an extent of Ac.1.59 cents situated in Rajahmundry Municipal Corporation Limits. The petitioners repaid substantial amount from time to time towards interest and principal. While so, the second respondent issued notice dated 02.02.2007 under Section 13 (2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 {“the Act” for brevity}, to the petitioners demanding to pay an amount of Rs.67,31,644/- or else, the respondent-Bank shall take further steps by initiating various measures prescribed under Section 13 (4) of the Act. Thereafter, the second respondent issued a format for intimation to take possession of the secured assets with the Bank by issuing proceedings dated 23.08.2007 under Section 13 (4) of the Act and notice dated 23.08.2007 stating that possession of the secured assets abovementioned will be taken over on 21.09.2007. Further, the respondent-Bank filed O.A.No.5 of 2004 on the file of the Debts Recovery Tribunal, Visakhapatnam {“the Tribunal” for brevity}, for recovery of the loan amount and the said O.A. is decreed. The respondent-Bank filed R.P.No.128 of 2004 for recovery of the loan amount and consequently, the Tribunal issued a certificate dated 29.09.2004 under Section 19 (2) of the Recovery of Debts to Banks and Financial Institutions Act to recover the loan amount with interest. Then the third respondent issued proclamation of sale dated 14.06.2011 proposing to sell the mortgaged property in a public auction scheduled to be held on 25.07.2011 by fixing the reserved price of Rs.65,00,000/- in respect of Schedule ‘A” property i.e., Ac.1.00 and Rs.40,00,000/- in respect of Schedule ‘B’ property i.e., 0.59 cents in Survey No.318/1 situated at Rajahmundry Town. The proclamation of sale represents the principal amount as well as interest to a tune of Rs.99,29,651.20 ps as on the date. Hence, this Writ Petition. Heard the learned counsel on either side. Rule 53 of the Procedure for Recovery of Tax reads as under. 53. Contents of Proclamation : A proclamation of sale of immovable property shall be drawn up after notice to the defaulter, and shall state the time and place of sale, and shall specify, as fairly and accurately as possible – (a) the property to be sold; (b) the revenue, if any, assessed upon the property or any part thereof; (c) the amount for the recovery of which the sale is ordered; (cc) the reserve price, if any, below which the property may not be sold; and (d) any other thing which the Tax Recovery Officer considers it material for a purchaser to know, in order to judge the nature and value of the property. In the circumstances of the case, the petitioners are at liberty to approach the Sale Officer with regard to fixing the offset price with regard to the proclamation of the sale and the authority concerned shall consider the same and pass appropriate orders within a period of two {2} weeks. Till such time, no coercive steps shall be taken. Accordingly, the Writ Petition is disposed of. No costs. _____________________ (GHULAM MOHAMMED, J) _______________ (K.G.SHANKAR, J) 21st July 2011 Note: Wire at party’s cost B/O RRB