IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE FIFTEENTH 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 : 7179 of 2009 Between: M/s. Smith & Kenner Pharmaceuticals Pvt. Ltd. Rep by its Managing Director, Regd Office : 16-2-738/F/4, Asmangad, Malakpet, Hyderabad, Rep by its Managing Director Dr. S. Jaya Swamy ..... PETITIONER AND 1 State Bank of India, Rep by its Deputy General Manager, Stressed Assets Managements Branch, 1-1-78, Near Secunderabad, HPO, R.P.Road, Secunderabad. 2 Asset Reconstruction Company of India Limited, Rep by its Vice President, 17th Floor, Express Towers, Nariman Point, Mumbai - 400 021. 3 M/s. APITCO Limited, a Company incorporated, Under the Companies Act, Rep by its Company Secretary, 8th Floor, Parisrama Bhavanam, Basheerbagh, Hyderabad. 4 M/s. Parijatha Consultants Architect and Planner, having its Principal Office at 435, 3-A Cross, 5th Main, HRBR, II Block Kalyan Na Bangalore - 43. .....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 an appropriate writ or order or direction more particularly one in the nature Writ of Certiorari to call for records relating to and in connection with MA No. 19/2009 in SA No. 120/2008 including the order dated 1-4-2009 on the file of the Hon'ble Debts recovery Tribunal, Visakhapatnam and quash the same as being in excess of jurisdiction, being in violation of principles of natural justice and pass Counsel for the Petitioner:MR.D.V.SITARAMAMURTHY Counsel for the Respondent No.: MR.DEEPAK BHATTACHARJEE The Court made the following : THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO : 7179 of 2009 Order : ( per Sri GM, J ) This Writ Petition has been filed challenging the proceedings in M.A.No.19 of 2009 in SA No.120 of 2008 and the order dated 1-4-2009 on the file of the court of the Debts Recovery Tribunal, Visakhapatnam. The petitioner-applicant filed S.A. No.120 of 2008 under section 17 of SARFAESI Act before the Debts Recovery Tribunal, (for short “DRT”) Visakhapatnam and the same was allowed by its order dated 18-3-2009 and that possession was directed to be delivered to the application as the assets taken by the Bank under SARFAESI Act are not valid and not in accordance with the provisions of SARFAESI Act. Thereafter, the 4th respondent moved MA No.17 of 2009 before the DRT, Visakhapatnam seeking stay of the order dated 18-3-2009 inter alia contending that they intend to file an appeal before the DRAT, Chennai and also that the petitioner is seeking to take possession of the factory premises. The DRT, Visakhapatnam by its order dated 20-3-2009 stayed its own order in SA No.120 of 2009. Learned counsel for the petitioner submitted that since there was final adjudication by the Debt Recovery Tribunal, Visakhapatnam, passing an order dated 20-3-2009 staying the operation of order passed by it is impermissible, more so, the 4th respondent has already filed an appeal before the DRAT, Chennai and the matter is pending consideration. We find some force in the contention. In the circumstances, when once S.A. No.120 of 2008 has been allowed on adjudication by the DRT, Visakhapatnam, and regular appeal is also preferred before the DRAT, Chennai, continuation of the stay orders dated 20-3-2009 is impermissible, and on this short ground itself, the impugned orders being unsustainable are liable to be quashed. Accordingly, the Writ Petition is allowed. No costs. ______ GM, J ______ VVA, J Dt : 15-6-2009 Kk THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO : 7179 of 2009 15-6-2009