THE HON'BLE SRI JUSTICE N.V. RAMANA & THE HON'BLE SRI JUSTICE P. DURGA PRASAD WRIT PETITION NO :16743 of 2011 Dated: 29.11.2011 Between: M/s. AP Food Grain, rep., by its Proprietor. ..Petitioner And Canara Bank rep., by its Authorized Officer, Hyderabad. ..Respondent This Court made the following: THE HON'BLE SRI JUSTICE N.V. RAMANA & THE HON'BLE SRI JUSTICE P. DURGA PRASAD W.P.No.16743 of 2011 ORDER: (Per Hon’ble Sri Justice N.V. Ramana) This writ petition is filed challenging the action of the respondent-Bank in initiating proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short "the Act") pursuant to notice, dated 23.6.2010. The brief facts of the case are that the petitioner obtained working capital loan and adhoc limit from the respondent-Bank by mortgaging its property viz., premises bearing No.22-6-248 admeasuring 55 sq. yards at Miralam Mandi, Hyderabad and Plot No.1, Ward No.4, Block 14, Attapur, Rajendranagar Mandal, Ranga Reddy District and thereafter, it had become irregular in payment of the loan instalments and hence, the respondent-bank issued a notice dated 23.6.2010 under Section 13(2) of the Act demanding the petitioner to pay an amount of Rs.55,26,354/- within a period of 60 days from the date of receipt of the notice and thereafter, the petitioner approached the Bank and settled the account for an amount of Rs.49.75 lakhs and deposited an amount of Rs.8.75 lakhs and in the meantime, the respondent-Bank initiated proceedings for possession of the property of the petitioner. Hence, the present writ petition is filed. Today, both the Counsel brought to the notice of this Court that after ﬁling the present writ petition, the respondent-Bank ﬁled O.A.No.376 of 2011 before the Debt Recovery Tribunal and therefore, no adjudication is required in this writ petition. But however, the learned Counsel for the petitioner prayed that the interest of the petitioner may be protected during the pendency of the O.A., before the Tribunal since the petitioner has already paid about Rs.18.75 lakhs out of the demanded amount of Rs.55,26,354/-. The payment of Rs.18.75 lakhs by the petitioner is not disputed by the learned Counsel for the respondent-Bank. In the circumstances of the case and in view of the pendency of the O.A., before the Tribunal, without expressing any opinion on the merits of the case, we feel it appropriate to direct the respondent-Bank not to take any coercive steps during the pendency of the O.A., before the Tribunal subject to the condition of the petitioner depositing an amount of Rs.7,00,000/- (Rupees Seven Lakhs only) in addition to the amount already paid, within a period of four weeks from today. The Tribunal is also directed to dispose of the O.A. expeditiously. With the above direction, the writ petition is disposed of. No order as to costs. _______________ N.V.RAMANA, J ___________________ P. DURGA PRASAD, J Dated: 29.11.2011 Nn THE HON'BLE SRI JUSTICE N.V. RAMANA & THE HON'BLE SRI JUSTICE P. DURGA PRASAD WRIT PETITION No.16743 OF 2011 (Order delivered by the Hon’ble Sri Justice N.V. Ramana) 29.11.2011 Nn