Telangana High Court
WP/40728/2014 of M/s.Kusuma industries, Vs The Syndicate Bank, on 30 December 2014
SRI JUSTICE K.C. BHANU AND THE HON’BLE MRS JUSTICE ANIS WRIT PETITION No.40728 OF 2014 ORDER:(per Hon’ble Sri Justice K.C.Bhanu) This Writ Petition, under Article 226 of the Constitution of India, is filed to declare the action of the respondents in issuing sale notice,
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THE HON’BLE SRI JUSTICE K.C. BHANUANDTHE HON’BLE MRS JUSTICE ANIS
WRIT PETITIONNo.40728 OF 2014
ORDER:(perHon’ble SriJustice K.C.Bhanu)
This Writ Petition, under Article 226 of the Constitution ofIndia, is filed to declare the action of the respondents in issuingsale notice, dated 08.12.2014 for conducting public auction for saleof the property of the petitioner i.e., RS No.210/3, Old Door No.2-41/1 and new Door No.2-55 with an extent of 1621.50 square yardswith shed and machinery situated at Vadapalli village, KovvurMandal, West Godavari District, as wholly illegal an arbitrary.
2. Heard both sides.
3. Learned counsel for the petitioner states that the petitioneris ready and willing to discharge the entire loan amount ifreasonable time is granted.
4. Learned Standing Counsel appearing for the respondentbank contends that in spite of giving several opportunities,petitioner has not paid the amount and therefore, he prays todismiss the writ petition.
5. The petitioner claims to be a small scale industry andhaving taken a loan, it committed default, therefore, the bankdeclared the loan account of the petitioner as Non-Performing Asset and initiated proceedings under the Securitisation andReconstruction of Financial Assets and Enforcement of SecurityInterest Act, 2002 (for short, ‘the SARFAESI Act’). Possession ofthe secured asset was taken and auction notice was also given. Now the petitioner comes forward with a plea to pay the entireamount due to the bank if reasonable time is granted.
6. Considering the fact that the petitioner industry is being runas small scale industry and due to some unavoidablecircumstances, the petitioner could not pay the instalments due tothe bank as per the schedule, we direct the petitioner to pay 50%of the outstanding loan amount due to the bank within a period ofsix (06) weeks from the date of receipt of a copy of this order andthe remaining amount within a period of six (06) weeks thereafter. However, the bank is at liberty to conduct auction, but sale shallnot be confirmed. If the petitioner fails to fulfil any one of theconditions as mentioned above, the bank is at liberty to confirmthe sale and issue sale certificate in favour of the auctionpurchaser. Registry is directed not to entertain any applicationseeking ‘extension of time’ and ‘for being mentioned’ petition inthis regard.
5. Accordingly, the Writ Petition is disposed of. There shall beno order as to costs. Miscellaneous Petitions, if any, pending inthis writ petition shall stand closed.
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JUSTICE ANIS