THE HON'BLE SRI JUSTICE GHULAM MOHAMMED and THE HON’BLE SRI JUSTICE K.G. SHANKAR WRIT PETITION 1958 of 2011 Between: Tahir Nijamudddin Khan ..... PETITIONER(S) AND .....RESPONDENT(S) THE HON'BLE SRI JUSTICE GHULAM MOHAMMED and THE HON’BLE SRI JUSTICE K.G. SHANKAR WRIT PETITION 1958 of 2011 ORDER: (per HON'BLE SRI JUSTICE GHULAM MOHAMMED) 1) This writ petition has been filed challenging the action of the 1st respondent-bank in issuing proclamation of sale dated 3-12- 2010 in RP No.3000 of 2005 in O.A.No.190 of 2004 in respect of lot No.1 to VII as being illegal, arbitrary and contrary to the provisions of the Recovery of Debts due to Banks and Financial Institutions, apart from being violative of the principles of natural justice. 2) According to the petitioner the 2nd respondent is a company incorporated under the provisions of the Companies Act, 1956, that the petitioner and the respondents 3 and 4 are the directors of the company; the 5th respondent herein is his wife, who stood as a guarantor on his behalf. The 2nd respondent company has availed itself of financial assistance from the 1st respondent bank and on the advise of the 3rd and 4th respondents, the petitioner stood as one of the guarantors for the above loan facilities sanctioned to the 2nd respondent in the month of March 1999. 3) According to the petitioner he came to know of the recovery proceedings and the proclamation of sale, dated 3-12-2010 on 10-12-201 when he was served with a notice in RP No.300 of 2005 in O.A.No.190 of 2004 on the file of the Debts Recovery Tribunal, Hyderabad. It is stated by the petitioner that at no point of time he had been put on notice during the course of the recovery proceedings, or even when the mater had been seized of by the 6th respondent-Debts Recovery Tribunal, Hyderabad which passed an ex-parte order dated 2-11-2005 in O.A.No.190 of 2004. The petitioner stated to have filed an appeal along with delay condonation petition before the Debts Recovery Appellate Tribunal, Chennai and that same is not yet numbered. 4) It is mainly contended by the petitioner that the value of the properties all put together would be more than ten crores and the liability at per auction notice is around Rs.1,36 crores, and that the petitioner is infact ready to clear the liability. 5) In the circumstances, without going into merits or otherwise of the matter, and considering the fact that the amount due to be paid is about Rs.1.36 crores and odd, with interest thereon, we are inclined to dispose of the writ petition directing the petitioner to pay Rs.10,00,000/- ( Ten lakhs only ) by day after tomorrow, another Rs.10,00,000/- ( Ten lakhs only) within one week thereafter, and ten lakhs each for every two weeks thereafter till the amount is realized. Failing to comply with any of the conditions, the respondent-bank is at liberty to proceed further with the matter. 6) Subject to above directions, the writ petition is disposed of. No costs. ________________________ GHULAM MOHAMMED, J. __________________ KK/7-2-2010 K.G.SHANKER, J. THE HON'BLE SRI JUSTICE GHULAM MOHAMMED and THE HON’BLE SRI JUSTICE K.G. SHANKAR WRIT PETITION 1958 of 2011 7-2-2011