THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION No. 14649 of 2009 Between: M/s Vensa Bio Tech Limited represented by its Managing Director and two others ..... PETITIONERS AND State Bank of India, Commercial Branch, Kakinada, now transferred to Stressed Assets Management Branch, Secunderabad .....RESPONDENT ORDER: (Per Hon'ble Sri Justice Ghulam Mohammed) This Writ Petition has been filed by the petitioners challenging the action of the respondent-Bank in issuing Tender Notice dated 16.6.2009 by putting the immovable properties of the petitioners in open auction as illegal and arbitrary and consequently direct the respondent-Bank not to conduct any auction which is scheduled to be held on 22.7.2009 at 3.00 pm at SBI, Commercial Branch, Kakinada, East Godavari District. Brief facts of the case are that as the petitioner Company’s financial situation became dull and its accounts having become Non Performing Assets, the respondent-Bank invoked the proceedings under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short “the SRFAESI Act”) and issued notice under Section 13(4) of the SRFAESI Act. Aggrieved by the same, petitioners preferred S.A.No. 37 of 2007 and the same was finally dismissed by the Debts Recovery Tribunal, Visakhapatnam. Subsequently, the respondent-Bank has taken physical possession of the property in question on 22.5.2009. It is submitted that the respondent-Bank also filed O.A.No. 91 of 2008 on the file of the Court of Debts Recovery Tribunal, Visakhapatnam, for recovery of Rs. 11,03,91,664.89 ps in respect of Cash Credit Facility, which is due and repayable by the petitioners jointly and severally inclusive of interest till 18.3.2008 at the rate of 2.5% and that the same is pending. It is also submitted that the respondent-Bank has issued Tender Notice on 16.6.2009 with the description of the sale of immovable properties and the auction was scheduled to be held on 22.7.2009 at 3.00 PM, without giving any valuation certificate to the petitioners. It is stated that the petitioners do not have any objection if any bidder bids for Rs. 2 Crores in the open auction. This Court on 21.7.2009 while issuing notice before admission directed that the respondent-bank is at liberty to proceed with the auction in accordance with the schedule. However, the same shall not be confirmed pending further orders. Again on 4.8.2009 this court directed the petitioners to deposit an amount of Rs. 55 Lakhs within one week from that date. It is stated that the order dated 4.8.2009 passed by this Court has not been complied with by the petitioners. In view of the above, and in view of the facts and circumstances of the case, having given time on two occasions to the petitioners, they have not utilized the same and they have not even complied with the orders dated 4.8.2009 passed by this Court. Therefore, we are not inclined to interfere in this Writ Petition under Article 226 of the Constitution of India and the Writ Petition is liable to be dismissed. Accordingly, the Writ Petition is dismissed. However, as a last chance, we hereby extend time to the petitioners to deposit the amount of Rs. 55 Lakhs as directed by this Court on 4.8.2009, up to 14th September 2009. If the petitioners fail to deposit the said amount, the respondent-Bank is at liberty to confirm the sale. If money is paid by the petitioners within the time stipulated herein, the respondent-Bank shall consider re-scheduling of the loan account by granting reasonable time to clear the loan liability in one or more than one instalments and pass appropriate orders on the representation being submitted by the petitioners mentioning all the details. There shall be no order as to costs. _______________________ GHULAM MOHAMMED,J _______________________________ NOOTY RAMAMOHANA RAO,J 27.08.2009 KA ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1. 2 CD copies.