THE HON'BLE SRI JUSTICE N.V. RAMANA & THE HON'BLE SRI JUSTICE P. DURGA PRASAD WRIT PETITION NO :30459 of 2010 Dated: 12.12.2011 Between: M/s. Bright Galvanizing Works, rep., by its Proprietor. ..Petitioner And 1. State Bank of India rep., by its Chief Manager and another ..Respondents This Court made the following: THE HON'BLE SRI JUSTICE N.V. RAMANA & THE HON'BLE SRI JUSTICE P. DURGA PRASAD W.P.No.30459 of 2010 ORDER: (Per Hon’ble Sri Justice N.V. Ramana) This writ petition is filed seeking to declare the order dated 16.11.2010 passed by the respondents on the representation made by the petitioner, pursuant to notice dated 4.10.2010 issued under Section 13(2) of the Securitization and Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002, as illegal and arbitrary and contrary to the spirit of Section 13(3)(A) of the Act. The brief facts of the case are that the petitioner availed loan from the respondent-Bank in the year 2007 and failed to pay the instalments regularly and hence, the respondent-Bank issued notice dated 4.10.2010 under Section 13(2) of the Act and pursuant to the same, the petitioner made a representation dated 2.11.2010 and on that, the respondent-Bank passed the impugned order rejecting the objections taken by the petitioner in the representation. Hence, the present writ petition. Heard both the Counsel and perused the material available on record. Learned Counsel for the petitioner contends that before passing the impugned order, it is the duty of the respondent-Bank to inform that the petitioner’s account was notified as Non-Performing asset, but the respondent-Bank did not classify its account as Non-performing asset in the notice issued under Section 13(2) of the Act, and the impugned proceedings are liable to be set aside. In reply, the learned Counsel for the respondent-Bank placed before us a letter addressed by the petitioner, wherein it is stated that the accounts of the petitioner are temporarily irregular on account of excess drawals and this is due to slack economic conditions prevailing and reasons beyond their control and any way, they have taken measure to mitigate their economic position and expedite the recoveries receivable from their customers and are hopeful to do it very soon. It is contended by the respondents that the petitioner knowing well that their account was declared as NPA, suppressing the same, the petitioner filed the present writ petition and obtained stay, and because of the interim orders, they are unable to pass any orders under Section 13(4) of the Act. A perusal of the material on record makes it clear that the petitioner is irregular in payment of the amounts due to the Bank, consequent to which, the respondent-Bank initiated proceedings, and in the meantime, the petitioner filed the present writ petition and obtained interim order on the pretext that the respondent-Bank passed the impugned order without prior intimation that its account was classified as NPA. As can be seen from the impugned order, it is clear that the representation of the petitioner, dated 2.11.2010, was rejected, and the petitioner was called upon to comply with the demand notice dated 4.10.2010. It is nothing but a reminder. Therefore, the approach of the petitioner to this Court is not sustainable under law. Hence, the writ petition is liable to be dismissed. At this stage, the learned Counsel for the petitioner submits that if proceedings under Section 13(4) of the Act are issued, the petitioner will suffer. If the respondent-Bank initiates any proceedings under Section 13 (4) of the Act, the petitioner is at liberty to avail remedy of appeal under Section 17 of the Act. Accordingly, the writ petition is dismissed. Consequently, interim stay granted on 8.12.2010 shall stand vacated. No order as to costs. __________________ Justice N.V. Ramana DATE: 12.12.2011 ____________________ Justice P. Durga Prasad nn THE HON'BLE SRI JUSTICE N.V. RAMANA & THE HON'BLE SRI JUSTICE P. DURGA PRASAD W.P.No.30459 of 2010 (Order delivered by the Hon’ble Sri Justice N.V. Ramana) 12.12.2011 Nn