IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE SIXTH DAY OF OCTOBER TWO THOUSAND AND NINE PRESENT THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO : 8612 of 2009 Between: 1 M/s. Sri Subramanyaneswara Fertilizers, rep. by its Proprietor T. Subramanyam D.No.6-1-174, Main Road, Narsaraopet, Guntur District. 2 Tavva Subramanyam S/o. Subba Rao D.No.6-1-174, Main Road, Narsaraopet, Guntur District. 3 Tavva Subba Rao S/o. Venkata Subramanyam D.No.6-1-174, Main Road, Narsaraopet, Guntur District. ..... PETITIONER(S) AND 1 The Authorized Office, ING Vysya Bank Ltd., Narasaraopet, Guntur District. 2 The Branch Manager, ING Vysya Bank Ltd., Narasaraopet, Guntur District. 3 The Recovery Officer, Debt Recovery Tribunal, Visakhapatnam. .....RESPONDENTS 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 an appropriate writ, order or direction more particularly one in the nature of a Writ of Mandamus declaring the action of the 3rd respondent in issuing notice of sale proclamation dt. 18.03.2009 R.P.No.15/2008 in O.A.No.63/06 putting house property bearing No.6-1-174 and land in an extent of 91 1/2 sq. yards covered by T.S.No.437, Narasaraopet Town and house bearing No.7-2-79 in an extent of 23 sq. yards in Ward No.8 in T.S.No.1484 of Varavakatta area, Narasaraopet, quoting very low reserve price of Rs.787,80,000/- as against the market value of Rs.3 1/2 crores is illegal, arbitrary and unconstitutional and consequently set aside the impugned sale proclamation dt. 18.03.2009 R.P.No.15/2008 in O.A.No.63/06 on the file of DRT, Visakhaptnam putting the above three properties to sale and pass Counsel for the Petitioner:MR.N.RAVI PRASAD Counsel for the Respondent No.: . THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR WRIT PETITION No.8612 of 2009 ORDER: (per Hon’ble Sri Justice Ghulam Mohammed) This writ petition is filed questioning the notice of sale proclamation dated 18.03.2009 in fixing the upset price at Rs.78,80,000/- though the worth of the property is more than Rs.3.50 crores. The property in question was put to auction and an amount of Rs.1,57,70,000/- was fetched for a total due of Rs.50,00,000/-. However, the respondents instead of selling the property only to the extent of decree by the Debts Recovery Tribunal, have resorted to excess sale, which is impermissible under law. An affidavit is filed by the petitioner undertaking to repay the entire amount and the same is taken on record. The petitioner shall clear off the entire amount outstanding including costs, legal expenses and incidental expenses to the respondent- bank within a period of six weeks from today. However, it is made clear that the petitioner shall pay the interest to the auction purchaser at the current savings bank rate from the date of deposit till the date of payment. In default, the Debts Recovery Tribunal is at liberty to confirm the sale of the auction purchaser. With the above directions, the writ petition stands disposed of. ___________________________ GHULAM MOHAMMED,J _____________________________ VILAS V. AFZULPURKAR,J Dt:10-06-2009 usd