IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TWENTY SECOND 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 : 1890 of 2008 Between: Prasadula Venkata Narayana, S/o. late Sri Adinarayana, R/o. H.No. MIG -234, Ground Floor, VUDA Colony, Near Rytuj Bazaar, Dasanna peta, Vizianagaram. ..... PETITIONER AND 1 The Deputy General Manager, Union Bank of India, Regional Office, credit Recovery and Legal Services Department, 2nd Floor, Mohan Manson, 4th Lane, Dwaraka Nagar, Visakhapatnam. 2 The Authorised Officer, Union Bank of India, Regional Office, Credit Recovery And Legal Services Department, 2nd Floor, Mohan Manson, 4th Lane, Dwaraka nagar, Visakhapatnam. 3 The Branch Manager, Union Bank of India, Vizianagaram Branch, Vizianagaram. .....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 a Wrti, order or direction more particualrly a Writ in the nature of Mandamus directing the Respondents to consider the Petitioner's representation dated 30-01-2008 permitting the Petitioner to pay the future monthly installments to the creidt of the Petitioner's housing loan account with the 3rd Respondent Bank by declaring the Notice dated 23-01-2008 of the 2nd Respondent issued under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, as arbitrary, illegal, unjust and pass Counsel for the Petitioner:MR.A.K.KISHORE REDDY Counsel for the Respondent No.: MR.A.KRISHNAM RAJU The Court made the following : THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR W.P.No. 1890 of 2008 ORDER: (Per Ghulam Mohammed, J) This writ petition is filed seeking a writ of Mandamus to declare the notice dated 23.01.2008 of the second respondent issued under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ‘the Act’), as illegal and arbitrary and consequently direct the respondents to consider the representation dated 30.01.2008 permitting the petitioner to pay the future monthly instalments to the credit of the housing loan account with the 3rd respondent Bank. 2. The petitioner availed housing loan of Rs.5,00,000/- from the third respondent Bank and agreed to repay the same in monthly instalments at the rate of Rs.6,250/- for a period of 10 years by mortgaging his immovable property. The petitioner paid some instalments and thereafter, he committed default in paying the monthly instalments. The petitioner was issued a notice dated 17.11.2007 under Section 13(2) of the Act to discharge the entire loan amount within 60 days and he gave reply dated 13.12.2007 to the said notice. Thereafter, the respondent bank has issued the impugned notice dated 23.01.2008 under Section 13(4) of the Act. 3. We have perused the record. Once the petitioner committed default in paying the instalments, the respondent Bank is entitled to recover the entire loan amount at once under the provisions of the Act. Accordingly, the respondents have initiated action against the petitioner to recover the loan amount. Hence, this court cannot interdict with the impugned notice dated 23.01.2008 issued under Section 13(4) of the Act so as to interdict further proceedings. However, in the facts and circumstances of the case, we deem it appropriate to permit the petitioner to make a representation to the respondent bank to regularize the loan account. 4. Hence, the writ petition is disposed of directing the petitioner to make a representation to the respondent Bank for regularizing the loan account, within a period of four weeks from the date of receipt of a copy of this order, and on such representation, the respondent bank shall consider and pass appropriate order in accordance with law. Till such time, no coercive steps shall be taken. No costs. _____________________ GHULAM MOHAMMED,J _____________________ VILAS V. AFZULPURKAR 22-06-2009 Stp ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1) 2 CD copies Form-NIC-OGS/WP{SPJS}