HON'BLE SRI JUSTICE GHULAM MOHAMMED AND HON'BLE SRI JUSTICE K.G. SHANKAR WRIT PETITION NO. 3267 OF 2011 Between: Vishnutek Engineers Private Limited ………….Petitioner AND Andhra Bank, Maharanipeta Branch, Visakhapatnam ………….Respondent ORDER : (Per Hon'ble Sri Justice Ghulam Mohammed) Heard both sides and at their request the main Writ Petition is taken up for disposal at the stage of admission. This Writ Petition is filed challenging the action of the respondent-Bank in not considering the claim of the petitioner under One Time Settlement Scheme as per Circular No. 243 dated 1.10.2010 and in issuing the notification dated 12.1.2011 published in Eenadu daily dated 13.1.2011 by fixing the upset price at Rs. 2,40,00,000/- with regard to the property situated in Sy.No. 117/2, Atkoor Village, Nidamanuru Mandal, Krishna District and another notification dated 12.1.2011 published in Hindu daily dated 13.1.2011 with regard to the property situated at Sy.No. 1/4A, Patta No. 272, Tadi Salepuvani Palem, Paravada Mandal, Visakhapatnam as illegal and arbitrary. Brief facts of the case are that the petitioner- Company has obtained financial assistance from the respondent-Bank and offered its valuable properties as security. Subsequently, the petitioner-Company due to financial recession crept in the field of business, could not repay the loan amount and as such the respondent- Bank invoked the provision of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short “the SRFAESI Act”) and issued notice under section 13 (2) of the Act on 12.5.2010 to the petitioner demanding him to pay the amount in question. It is stated that subsequently, the Bank has issued One Time Settlement Scheme for micro, small and medium enterprises (MSME) Sector in Circular No. 243 dated 1.10.2010. As per the said circular, the coverage of OTS scheme shall cover NPA loan accounts under Micro, Small and Medium Enterprises with the real account balance of above Rs. 2 lakhs and up to Rs. 10 crores as on 31.3.2010 and the operative period of the scheme is now extended up to 31.3.2011. The main grievance of the petitioner is that the petitioner unit also come under the coverage as mentioned in Clause 1.0 of the circular and in spite of the same, the respondent-Bank has not issued any notice to the petitioner to settle the account under OTS Scheme. His further grievance is that the value of the property that has been mentioned in Eenadu daily dated 13.1.2011 is very low and does not reflect the true value of the property as assessed by the valuer of the respondent-Bank. As the petitioner is ready and willing to pay the entire amount under the OTS scheme and the auction of the property situated in S.No. 1/4A of Salepuvanipalem, Paravada Mandal, Visakhapatnam District, is scheduled to be held on 17.2.2011, as per the notification published in Eenadu daily on 13.1.2011, ends of justice would be met if stay of auction of the said property is granted. In the circumstances, there shall be interim stay of auction of the property situated in S.No. 1/4A of Salepuvanipalem, Paravada Mandal, Visakhapatnam District, on condition of the petitioner depositing Rs. 50,00,000/- (Rupees Fifty Lakhs Only) in two instalments. First instalment of Rs. 25,00,000/- is directed to be deposited within a period of three weeks from today and the balance of Rs. 25,00,000/- within three weeks thereafter. The petitioner is directed to file an application to the respondent-Bank to consider his case under OTS scheme as per Circular No. 243 dated 1.10.2010. On filing of such application and after payment of Rs. 50,00,000/-, mentioned above, the respondent-Bank is directed to consider the case of the petitioner under OTS scheme. Failure of any of the conditions mentioned above, the respondent-Bank is at liberty to proceed with the auction. With the above observation, the Writ Petition is disposed of. There shall be no order as to costs. __________________________ GHULAM MOHAMMED, J _______________________ K.G. SHANKAR, J DATE: 15.02.2011 KA ... REGISTRAR // TRUE COPY // SECTION OFFICER To 1. 2 CD copies.