HONOURABLE SRI JUSTICE A. GOPAL REDDY AND HONOURABLE SRI JUSTICE SAMUDRALA GOVINDARAJULU WRIT PETITION No. 21632 OF 2009. DATED 25T H NOVEMBER, 2009. BETWEEN G.Ayyavariah …Petitioner And The Authorised Officer, Andhra Pradesh Grameena Bank, Head Office, PB.No. 65, Kadapa …Respondent. HONOURABLE SRI JUSTICE A. GOPAL REDDY AND HONOURABLE SRI JUSTICE SAMUDRALA GOVINDARAJULU WRIT PETITION No. 21632 OF 2009 ORDER: (Per Hon’ble Sri Justice A. Gopal Reddy) The petitioner who is an employee of the respondent-bank has obtained loan facility from the respondent-bank vide PHL No.1/06 and PHL No.1/05 for Rs. 7,60,000/- and Rs.1,78,000/- respectively. The repayment schedule is ﬁxed as per his salary in Equal Monthly Instalments at the rate of Rs.18,500/- per month, which will be deducted from his salary. While the matters stood thus, it is stated, the petitioner was suspended from service on 01.05.2008 on the basis of certain irregularities and domestic enquiry was also ordered against him. It is further stated that during the suspension, the petitioner is paying the instalments at Rs.3,500/- instead of Rs.18,500/-, to liquidate the liability. In those circumstances, the respondent-bank by invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ( for short ‘the SERFAESI Act’), issued notice dated 09.02.2009 under Section 13(2) thereof stating that the loan account has become NPA and calling upon the petitioner to discharge the entire loan amount of Rs.9,38,000/- by way of Rs.18,500/- per month, failing which, in exercise of powers conferred under Section 13 of the SERFAESI Act, the respondent- bank will proceed against the secured assets of the petitioner mentioned in the said notice. Questioning the said notice, the present Writ Petition is ﬁled contending that the said notice does not discloses when the loan account has become NPA and what is the interest due as on the date of issuance of the said notice. It is stated in the aﬃdavit ﬁled in support of the Writ Petition that pursuant to the said notice, the petitioner has submitted his reply on 21.3.2009 and 3.4.2009 requesting the respondent authorities to drop the further proceedings. It is the grievance of the petitioner that the respondent- bank has neither passed any speaking order nor dropped the further proceedings. The petitioner apprehends that pursuant to the notice dated 9.2.2009, the respondent- bank may proceed further in the matter. This Court while ordering notice before admission on 09.10.2009, granted interim stay of all further proceedings pursuant to the notice dated 09.02.2009. Inspite of service of notice, the respondent-bank did not choose to file appearance to contest the matter. Section 13(3-A) of the SERFAESI Act provides that on receipt of the notice under Section 13(2) thereof, if the borrower makes any representation or raises any objection, the secured creditor shall consider such representation or objection and if the secured creditor comes to the conclusion that such representation or objection is not acceptable or tenable, he shall communicate within one week of receipt of such representation or objection duly stating the reasons for non-acceptance of the representation or objection to the borrower. In that view of the matter, the respondent- bank shall consider the representations of the petitioner dated 21.3.2009 and 3.4.2009 which were submitted pursuant to the notice dated 9.2.2009 and pass reasoned order within two weeks from the date of receipt of a copy of this order and communicate the same to the petitioner. It is needless to state that if the respondent- bank failed to accept his representation and proceeded further in the matter, it is open for the petitioner to avail remedy of appeal as provided under Section 17 of the SERFAESI Act. The Writ Petition is disposed of. No order as to costs. ----------------------------------- JUSTICE A. GOPAL REDDY ------------------------------------------------------ JUSTICE SAMUDRALA GOVINDARAJULU Dated 25th November, 2009. Msnr.