IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY,THE SIXTH DAY OF JULY TWO THOUSAND AND NINE PRESENT THE HON'BLE SRI JUSTICE GHULAM MOHAMMED and THE HON'BLE SRI JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO : 276 of 2009 Between: B. Venkata Sai Ram Reddy, S/o. Dharma Reddy, R/o. H.No. 3-4-874, Barkathpura, Hyderabad. ..... PETITIONER AND 1 Indian Bank, A.R.M. Branch, IV Floor, Liberty Plaza, Himayathnagar, Hyderabad, Rep. by its Authorized Officer. 2 S. Padmavathi, D/o. Satyanarayana, R/o. Flat No. 15, 4th Floor, (MCH NO. 3-4-874), Barkathpura, Hyderabad. 3 Dr. Satyanarayana, S/o. Dharma Reddy, R/o. Anuradha Apartments, House No. 3-4-874, Barkathpura, Hyderabad. .....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 an order or direction more particularlyj one in the nature of Writ of Mandamus or any other appropriate Writ order or direction declaring the action of the respondent in issuing auction notice calling for the tenders for submission of the tenders putting as last date 12-1-2009 in so far for the flat owned and possessed by the petitioner i.e., the flats No.15 (403-A) and 403-B in 4th Floor, MCH NO. 3-4-874 each admeasuring undivided share of land of 85 square yards out of 844 square yards, built up area 900 sq. fts and 70 square yards 8.3% out of 844 square yards built up area 900 sq.fts includng common areas and balconies situated at Barkathpura, Hyderabad without issuing any notice as required to be issued under Section 13(2) of the of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002 as arbitrary, illegal, null and void and violative of principles of natural justice and also mandatory provision as provided under section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002 and also violative or Articles 14, 19 21 and 300-A of the Constitution of India. Counsel for the Petitioner:MR.K.VENUMADHAV Counsel for the Respondent No.: MR.AMBADIPUDI SATYANARAYANA The Court made the following : THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR W.P.No.276 of 2009 ORDER: (Per Ghulam Mohammed, J) This writ petition is filed seeking a writ of Mandamus to declare the action of the first respondent in issuing auction notice calling for tenders for sale of Flat Nos.15 (403-A) and 403-B in fourth floor, MCH No.3-4-874, Barkathpura, Hyderabad, without issuing notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act,2002 (for short ‘the Act’), as illegal and arbitrary. 2. The petitioner purchased the said flats for a sum of Rs.10,00,000/- each through registered Agreement of Sale-cum- General Power of Attorney vide document Nos.3748/06 and 3508/07 dated 28.9.2006 and 30.11.2007 respectively and he is in possession of the same. The petitioner paid entire sale consideration to respondents 2 and 3 on the date of execution of the said documents. While so, respondent No.1 issued an auction notice calling for tenders for sale of the flats and the last date for submission of the tender forms was fixed on 12.1.2009. The contention of the petitioner is that he being a bonafide purchaser and in possession of the flats, the respondent Bank ought to have issued a demand notice under Section 13(2) of the Act on him and without issuing any such notice, they issued auction notice, which is not sustainable under the Act. 3. This court, while admitting the writ petition on 09.01.2009, has granted interim suspension of the auction notice on condition of petitioner depositing 1/3rd amount of the value of the flats and he has complied with the same. Since the petitioner paid 1/3rd of the value of the flats and since he approached the respondent Bank to pay the remaining value of the flats, producing the letter dated 23.06.2009 of the respondent Bank, wherein the respondent Bank imposed certain terms and conditions to pay the remaining value of the flats, we deem it appropriate to direct the respondent Bank not to proceed against Flat Nos. 15 (403-A) and 403-B in fourth floor, M.C.H. No.3-4-874, Barkatpura, Hyderabad, pursuant to the auction notice. 4. The writ petition is, accordingly, disposed of. No order as to costs. GHULAM MOHAMMED,J _____________________ VILAS V. AFZULPURKAR,J 06.07.2009 Stp ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1) 2 CD copies Form-NIC-OGS/WP{SPJS}