THE HON’BLE Ms. JUSTICE G. ROHINI WRIT PETITION No.22252 OF 2006 27th October, 2006. Between: M/s Narayana Swamy Boiled Industries, N.H.-5, Chilakaluripeta, Guntur district, represented by its Managing Partner and another. .. Petitioners. And Authorised Officer, Andhra Bank, Small Scale Industries Branch, Lodge Centre, Guntur and another. .. Respondents. THE HON’BLE Ms. JUSTICE G. ROHINI WRIT PETITION No.22252 OF 2006 ORAL ORDER: This writ petition is filed seeking a declaration that the action of the respondents in issuing notices dated 26.5.2005 and 23.11.2005, under Sections 13(2) and (4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short “the Act”) and the consequential auction notice dated 22.9.2006 is arbitrary and illegal. The material on record shows that questioning the very same notice under Section 13(4) of the Act, the petitioners preferred an appeal being S.A.No.133 of 2005 before the Debts Recovery Tribunal at Visakhapatnam. Having entertained the said appeal, the Tribunal by order dated 14.12.2005, permitted the petitioners to operate and run the Unit subject to condition of depositing the amounts specified thereunder in instalments. However, the petitioners failed to comply with the same and sought for extension of time, which was rejected by the Tribunal by order dated 4.4.2006. Aggrieved by the same, the petitioners preferred an appeal before the Debts Recovery Appellate Tribunal at Chennai. Pending the said Appeal by order dated 4.4.2006, the Appellate Tribunal granted interim stay of all further proceedings till 20.4.2006, subject to condition of payment of Rs.10.00 lakhs on or before 20.4.2006. Though the petitioners have deposited the said amount, in spite of ample opportunity granted, the petitioners could not make further payments. In the circumstances, the Appellate Tribunal having taken note of the fact that substantial amounts are due, passed an order on 4.8.2006 as under: “ Taking into consideration the overall aspects of the case and that the Appellant has paid Rs.10.00 lakhs before this Tribunal, time is granted up to 15.9.2006. The respondent- Bank is hereby directed not to open the sealed tenders up to 15.9.2006. If the Appellant fails to pay the balance amount of Rs.68.5 lakhs as ordered by the Tribunal by its Order dated 14.12.2005, together with interest at the PLR rate from1.4.2006, on or before 15.9.2006, the Respondent Bank is at liberty to open the sealed tenders and also to proceed with the matter before the DRT in accordance with law.” Admittedly, the petitioners failed to make the payment in compliance with the above order, and consequently, the respondent- Bank issued a fresh auction notice dated 22.9.2006 bringing the secured assets to sale. Hence, this writ petition. The learned counsel for the petitioners vehemently contended that the impugned auction notice is arbitrary and illegal, since the properties brought to sale are agricultural lands and they are exempted from operations of the provisions of the Act and that the properties are deliberately undervalued by the respondents. I am unable to accept the same for the purpose of the present writ petition. As noted above, the petitioners have already preferred appeal under Section 17 of the Act questioning the proceedings initiated under the provisions of the Act and the above objections are required to be decided in the said appeal. So far as the impugned auction notice is concerned, it is not in dispute that the same has been issued since the petitioners have failed to comply with the conditional orders passed by the Appellate Tribunal. Admittedly, the order of the Appellate Tribunal dated 4.8.2006 has become final. In the circumstances, on the failure of the petitioners to pay the balance amount on or before 15.9.2006, the respondent-Bank is entitled to proceed with the sale of the secured assets. The writ petition is devoid of any merit and the same is dismissed. No costs. ______________ (G. ROHINI, J.) 27th October, 2006. Issue CC in two days. Kgr