HON’BLE SRI JUSTICE VILAS V. AFZULPURKAR WRIT PETITION No.15412 of 2011 Date: November 29, 2011 Between: Dasari China Lingaiah … Petitioner And State Bank of Hyderabad, Rep. by its Branch Manager, Achampet, Mahabubnagar District. … Respondent * * * HON’BLE SRI JUSTICE VILAS V. AFZULPURKAR WRIT PETITION No.15412 of 2011 O R D E R: Petitioner has approached this Court by way of the present writ petition aggrieved by the action of the respondent bank in trying to auction his tractor bearing No.AP 22 M 4026. The auction notice dated 11.5.2011 was, therefore, questioned in this writ petition. 2. While admitting the writ petition on 10.6.2011, this Court had granted conditional stay of auction subject to petitioner depositing Rs.75,000/- within two (2) weeks. Learned counsel for the petitioner stated that the said order has since been complied with. 3. The respondent has now ﬁled a counter aﬃdavit together with an application seeking vacation of the interim order wherein it is stated that the petitioner was granted tractor loan of Rs.5,00,000/- on 24.4.2007. Having availed the said loan for hypothecation agreement, the petitioner is said to have committed default and it is also alleged that the petitioner also availed agriculture crop loan of Rs.1,00,000/- and failed to repay the said crop loan also. The respondent bank had thereafter issued a legal notice dated 28.02.2011 for recovery of entire dues of Rs.7,48,835/- quantiﬁed by that date. In pursuance of the right given under the hypothecation agreement, the respondent bank had proposed to auction the said tractor. 4. After hearing both the learned counsel and after considering rival contentions, particularly, the oﬀer of the learned counsel for the petitioner that the petitioner would settle the entire due payable to the bank by making an application to the bank for One Time Settlement of the entire loan amount, I deem it appropriate to dispose of the writ petition with the following directions: Since the auction of the tractor was not held, the respondent shall not auction the said tractor but continue to hold it in its custody subject to the following: (1) Petitioner shall make an application for One Time Settlement (OTS) scheme as proposed by him within one week from today. (2) On such application being ﬁled, the respondent shall consider the same in accordance with the norms followed by the bank under OTS scheme. (3) In the event of the bank requiring more time for consideration of OTS than as stipulated above, the bank is at liberty to consider the release of the tractor on payment of part of the amount outstanding against him on payment of such amount by the petitioner, the tractor shall be released in favour of the petitioner. (4) In the event of any order being passed by the respondent bank on the petitioner’s application for OTS, the respondent bank shall also consider the release of the tractor, as keeping the said tractor under seizure would only diminish the value thereof. Subject to above, the writ petition is disposed of. There shall be no order as to costs. _____________________________ VILAS V. AFZULPURKAR, J. Date: November 29, 2011. BSB