HON’BLE SRI JUSTICE GHULAM MOHAMMED AND HON’BLE SRI JUSTICE NOOTY RAMAMOHANA RAO WP.No.16541 of 2009 Dt.09.9.2009 1. Gummadi Venkateswarlu and others … Petitioners Vs. 1.The Recovery Officer, Debt Recovery Tribunal, Visakhapatnam and another … Respondents HON’BLE SRI JUSTICE GHULAM MOHAMMED AND HON’BLE SRI JUSTICE NOOTY RAMAMOHANA RAO WP.No.16541 of 2009 O R D E R:- (per Hon’ble Sri Justice Ghulam Mohammed) This writ petition is filed seeking to issue a writ of mandamus declaring the proclamation of sale notice dated 06.7.2009 in R.P.No.213 of 2003 in O.A.No.584 of 2002 issued by the 1st respondent as being illegal, arbitrary, as the same has been issued pending adjudication of the applications filed by the petitioner before respondents 1 and 2 and consequently to set aside the same. 2. The brief facts of the case are as follows:- The petitioners are promoters of a company registered under Indian Companies Act, styled as M/s Ragunath Cotton & Oil Products Limited and they have availed loan facilities from the 2nd respondent-bank from time to time during the years 1987, 1989, 1990, 1992 and 1993 to the tune of Rs.8 crores. It is stated that the petitioners committed default in repaying the amounts to the 2nd respondent-bank. As such, the bank filed O.A.No.526 of 1999 before the Debt Recovery Tribunal, Hyderabad for recovery of the said amount together with future interest and costs. However, after establishment of a Debt Recovery Tribunal at Visakhapatnam, the said O.A. was transferred to Debt Recovery Tribunal, Visakhapatnam, and the same was renumbered as O.A.No.584 of 2002. The Debt Recovery Tribunal, Visakhapatnam after considering the evidence produced by the bank, passed recovery order dated 29.10.2003 for a sum of Rs.9,44,04,098.39ps. with future interest at 21.25%p.a. from the date of application till the date of recovery. In pursuance of the said recovery order, the Debt Recovery Tribunal, Visakhapatnam also issued a recovery certificate in R.P.No.213 of 2003 to the 1st respondent for recovery of a sum of Rs.40,34,00,353.34ps. together with future interest. It is the case of the petitioners that the said order has been passed exparte. It is also stated that the Board for Industrial and Financial Reconstruction (BIFR) had taken on record and registered a case in respect of the petitioner-company and seized of the matter and many discussions were held with the BIFR and the 2nd respondent-bank, but as an amicable solution could not be arrived at, the BIFR passed an order dated 29.6.1998 and recommended for winding up of the petitioner-company and in pursuance of the said order, the company of this High Court passed an order of winding up of the Company on 08.10.2001. According to the petitioners, the proclamation notice issued by the 2nd respondent-bank is illegal and unsustainable as it has been passed after BIFR seized of the matter. It is also stated that the 2nd respondent-bank has not obtained any permission from the BIFR or from the Company Court and, therefore, the impugned proclamation of sale notice is unsustainable in law. 3. Learned counsel for the petitioners submitted that the petitioners have made applications being MA.Nos.71 of 2004, 72 of 2004 and 73 of 2004 to condone the delay, to set aside the exparte decree and also to stay all further proceedings passed against the petitioners, but without disposing of the said applications, the impugned proclamation of sale notice has been issued. 4. In the facts and circumstances of the case, we consider it appropriate to direct the 1st respondent-bank to dispose of the applications said to have been filed by the petitioners after affording an opportunity of being heard to them in the matter preferably within a period of three (3) months from the date of receipt of a copy of this order. Till such time, the 2nd respondent/bank shall not confirm the sale in respect of the properties in question. 5. With the above directions, the writ petition is disposed of. No order as to costs. ___________________ GHULAM MOHAMMED,J _________________​______ NOOTY RAMAMOHANA RAO, J 09th September, 2009. PNV THE HON’BLE SRI JUSTICE GHULAM MOHAMMED AND THE HON’BLE SRI JUSTICE_NOOTY RAMAMOHANA RAO W.P.No.16541 of 2009 Dt.09-09-2009