WP/12356/2021 of Sudalgunta Jayaram Chowdary and 3 others Vs State Bank of India on 30 December 2021

1. Sudalgunta Jayaram Chowdary, S/o penchal Naidu. Aged about 71 years, Occ:r. ^ buoatagunta [Business. ][R/o_209, ]Ramanaiah [Tp ][Area, Of ]_ Naidu, [p: ][Bus ]S/o [StanO, ]Late panihal [fiiupattril ]Naidu, [St ZsOt]Aqed Occ:3 . Sudalagunta.Agro [B ][usiness, R/o ][D. ][No. ]l\.rlitts [20G, D ]Limired, 20g, [No. ][1 ][9-3-2OiG ]Ii nrba-Opp:'eus r, xa t.it ivi trta-sli, S%,iO r;;yu"plTil:ET;.[i'iirlp]i'hiSiiSOr,A.P. Rep.by its lrrlanaginq Director S.K.Kalvan XLjrharr. ^ buoatagunta [Business. ][R/o_209, ]Ramanaiah [Tp ][Area, Of ]_ Naidu, [p: ][Bus ]S/o [StanO, ]Late panihal [fiiupattril ]Naidu, [St ZsOt]Aqed Occ:3 . Sudalagunta.Agro [B ][usiness, R/o ][D. ][No. ]l\.rlitts [20G, D ]Limired, 20g, [No. ][1 ][9-3-2OiG ]Ii nrba-Opp:'eus r, xa t.it ivi trta-sli, S%,iO r;;yu"plTil:ET;.[i'iirlp]i'hiSiiSOr,A.P. Rep.by its lrrlanaginq Director S.K.Kalvan XLjrhar4. sudalgunta Sugars_ Pvtr Lt!, TP Area, opp: Bus stand rirupathi-s12501,Represented by its Director, Sudalgunta Jayar'a'm Chowdary.Represented by its Director, Sudalgunta Jayar'a'm Chowdary.

.,.PETITIONERS

AND

t. 9!qtq Bank of lndia, SAM Branch-ll TSRTC Bus Station Kachiguda Hyderabad -500 027. Rep.by its Authorized Officer.500 027. Rep.by its Authorized Officer.

2. Aaditri Housing Private Limited, Rep. by its Authorised Signatory Ir/ r. AluriNageswarao S/o Venkateshwarao, D.No.8-2-2931821A1233, 3'" Floor, Road No.36, Jubilee Hills Hyderabad Telangana.Nageswarao S/o Venkateshwarao, D.No.8-2-2931821A1233, 3'" Floor, Road No.36, Jubilee Hills Hyderabad Telangana.

(Respondent No. 2 is impleaded as per Court Order dated 1311212021 Vide l.A.No. 4 of 2021 in W.P. No.12356 of 2021)No. 4 of 2021 in W.P. No.12356 of 2021)

...RESPONDENTS

Petition under Article 226 of the constitution [of ][lndia ][praying ][that in ][the]circumstances stated in the [affidavit ][filed ][therewith, ][the ][High ][court ][may be ][pleased]to issue order, writ oi direction [more ][particularly ][one ][in the ][nature ][of ][Writ ][of]certiorari a) Quash [the order of ][the ][Hon',ble ][Debts Recovery ][Tribunal-l, ][Hyderabad]dated 05.05,2021 [in ][LA. ][No. 438/2021 ][in ][s.A ][45/2021 ][b) Set ][aside ][the sale ][notice]dated 25.03.2021 [issued ][by ][Respondent No.1 Bank ][as ][being illegal and contrary ][to]law lA NO: 2 OF 202'l PetitionunderSectionl5lCPCprayingthatinthecircumstancesstatedintheaffidavitfiledinsupportofthepetition,theHighCoUrtmaybepleaSedtostayallconsequentialproceedingsarisingoutofeauctionsalenoticedated25.03.202landauctionproceedingsdated06.o5.2o2landfurtherrestraintheRespondentsfromthe [sale including issuing sale certificate ][of ][scheduled properties ][pending]confirming disposal of the [above ][writ ][petition']

Between:

Between: ' [r ][i^-^^^n6nt ][Rranch-ll' ][1"r ][Floor' ][cAc' ][TSRTC]ottice'BL1".B?,:[ [",liif; ][-ft ][i"fi ii3?,i:::f'y3i;:RT;1"?':tu;;';eo ]

...PETITIONEFURESPONDENT

AND"1ffi+*ift"5l*fl6gg.;;;*?.'1,'Hffi

ffi,p'f,h'ffi

by its [Director' ][Sudalagurrta ][uavorq.r ][""" '-- ]

...*TT'ONDENTS/,ETITIONERS

petition under section [151 ][cpc ][praying ][that in the ][circumstances ][stated ][in]the affidavit [filed in ][support of ][the ][petition' ][the ][High Court may be ][pleased ][to ][vacate]thelnterimorderdated [j3losl2o2ipassedinw.pNo. ][1235612021 ][onthefileof ][this]Hon,bleCourtanddismisstheWritPetitionNo.123561202lfiledbythePetitionersagainst [the ][Respondent ][Bank in ][the interest ][of ][justice']

lA NO: 5 [OF ][2021]

Between:

Ivl/s. Aaditri [Housing ]-no5O [private ][Limited, D.No8-2-293 ][ll2tAl234 ][& ][235, ][TF-1 ][,3'd ][Floor,]ruo. 3;,-i;;;;hrr Cotony, Jubilee Hills. Hyderabad, Telangana.E.pir""Sqrr," -R;ii;;yit; n thoriiuo signr'tol'v |\li Ai"i Nasedwara Rao s/o Venkateswara Rao'

...PETITIONERYRESPONDENT [NO.2]

AND

1. ' E;;r*;;; Sudalaqunta Jayaram Fv;r6e.1i [Chowdary, S/o P^enchalJlaidu Aged-about ]Area, opp: Bus Stand, rirupathi - s17501[7'1 ][years' ][Occ:]' z 6lL Sriiliilinta Erffiiiilid, Ramanaiah nv"b.tto.2bc,'o.trto.ts'3-2otc1, [NiiOu, ][Slo ][Late Panchal ][Naidu, ]Kakathiva [Aged about 60 ]Nasar' Tirupathi-[years]517501' z 6lL Sriiliilinta Erffiiiilid, Ramanaiah nv"b.tto.2bc,'o.trto.ts'3-2otc1, [NiiOu, ][Slo ][Late Panchal ][Naidu, ]Kakathiva [Aged about 60 ]Nasar' Tirupathi-[years]517501

a. Suaiiasunta Agro [Mils ][Limited, ][209, ]Jp, [Area,.opp: ][Bus ][Stand ][Tirupathi-S17501,]A.P. Re;.bv its-Manaqinq Director its-Manaqinq Director [[S.K.Kalyan Kumar]][['s'rorridJn(a ]]A.P. Re;.bv its-Manaqinq Director its-Manaqinq Director [[S.K.Kalyan Kumar]][['s'rorridJn(a ]]

A.P. Re;.bv its-Manaqinq Director its-Manaqinq Director [[S.K.Kalyan Kumar]]+ [['s'rorridJn(a ]]Suqir [piivite ][Limited, ][TP ][Ar-ea, ][opp: ][Bus Stand, Tirupathi-517501']Rep. bi its Direclor, Sudalagunta [Jayaram ][Chowdary.]Rep. bi its Direclor, Sudalagunta [Jayaram ][Chowdary.]

...RESPONDENTSM/RIT PETITIONERS

5, State Bank of lndia, Stressed [Assets ][N/anagement ][Eranch-ll, ][1't ][Floor' ][CAC,]isnfC Bus Station, Kachiguda [Hyderabad-soo ][027. ][Rep ][by ][its ][Authorized]Officer.isnfC Bus Station, Kachiguda [Hyderabad-soo ][027. ][Rep ][by ][its ][Authorized]Officer.

..,RESPONDENT/RESPONDENT [NO.1]

Petition under Section 151 CPC [praying ][that in the ][circumstances ][stated ][in]the affidavit filed in support of the [petition, ][the ][High Court may be ][pleased ][to ][vacate]the interim orders dated [1310512021 ][passed ][in W.P.No.'12356 of ][2021 ][and ][to ][dismiss]the W.P.No.12356 of 2021 with exemplary [costs ][in ][the interest ][of justice,]

Between:

1. Sudalgunta Sugars pv;trffiwffifiilffi**ffidff .,.PETITIONERS

AND

1. State Bank of rndia. sAIr,/ Branch-, TSRTC Bus station -500 027. Rep.by its Authorized OfficerKachiguda Hyderabad 500 027. Rep.by its Authorized OfficerKachiguda Hyderabad 2.Emprre M/s_Aaditri Housing square. Road pvt. No_36, Ltd., No. Jawahar 8-2-293182 CotonV,- 1N234 lrOife" and 235, -iiffi, TF_1,3,0 ffvi"rJtli,floor.Telanqana 500033Telanqana 500033

..,RESPONDENTS

Petition under Articre 226 o'f rhe constitution of rndia praying that rn thecircumstances stated in the affidavit filed therewith, the High court may be pleasedto issue order, wril or direction more padicularly one in the nature of Writ ofMandamus a) set aside the Sale certificate dated 20.05.2021 issued by theRespondent No.1 Bank to Respondent No.2. b) Declare the issuance of saleCertificate by Respondent No.1 Bank to Respondent No.2 as being illegal andcontrary to the Hon'ble High Court's lnterim Order in W.P.No.1235612021 c) Declarethat the taking physical possession of the Petitioner's properties is illegal andarbitrary.

lA NO: 1 OF 2021

Petition under Section 151 CPC praying that in the circumstances stated [in]the affidavit filed in suppod of the [petition, ]the [High Court may ][be ][pleased ][to]suspend the sale certificate dated [20/05/2021 and ][further ][restrain ][the ][Respondent]No.1 from delivering the [physical possession ][of ][the ][Petitioner's ][properties ][to ][the]auction [purchaser ][pending ]disposal [of ][the ][above ][writ ][petition.]IA NO[..2 ]0F 2021

Between:

State Bank of lndia, [Stressed ][Assets ][lr,4anagement ][Branch ][- ][ll, ][lstFlo-or, CAC, TSRTC]e|,. Strti"" [-Xr.f,igraj, ][Hyderabad -500 027. ][Rep.by its ][Authorized ][Officer.]

...PETITIONER/RESPONDENT

AND

1 sudalaqunta Suqars [P!t. ][Ltd., TP Area, ][opp: ][Bus Stand Tirupathi-S17 ][501' ][Rep']bv its D'irector, Sudalagunta [Jayaram ][uhowoary ][.]2. sudalounta [Javaram ][c#;.i*i, ][5l;'Fenii-rir ][rtaiou,-1999.1?o't ][71 vears' ][occ:]' 517s01Eilil;;;'Rlo los, iCnr"r, o'pp: Bus stand-rirupathi 3. sudaraqunta [Ramanaiah'fiirii; ][5f"Iit"-panin't ][Naidu ][Aqed: ][[rr']aior' ][occ:]Busineis. R/o. D.No.20G, [ijliii.is:i2ofqi' ][xitiatrv' ][Naoar' Tiiupathi-s17s01]4. - Sudalaqunta [Agro ][Ir/ills ][Li",itt'"tl ][idsliF.Ai;f' ][o!'p ][BIs ][Stand' ][Tirupathi-517];di, n"P il;;. t"v itt vrn,ging Director S K Kalvan Kumarbv its D'irector, Sudalagunta [Jayaram ][uhowoary ][.]2. sudalounta [Javaram ][c#;.i*i, ][5l;'Fenii-rir ][rtaiou,-1999.1?o't ][71 vears' ][occ:]' 517s01Eilil;;;'Rlo los, iCnr"r, o'pp: Bus stand-rirupathi 3. sudaraqunta [Ramanaiah'fiirii; ][5f"Iit"-panin't ][Naidu ][Aqed: ][[rr']aior' ][occ:]Busineis. R/o. D.No.20G, [ijliii.is:i2ofqi' ][xitiatrv' ][Naoar' Tiiupathi-s17s01]4. - Sudalaqunta [Agro ][Ir/ills ][Li",itt'"tl ][idsliF.Ai;f' ][o!'p ][BIs ][Stand' ][Tirupathi-517];di, n"P il;;. t"v itt vrn,ging Director S K Kalvan Kumar

...RESPONDENTS/PETITIONERS

,'' ul', *s: I[l s"ill t? i*- Hx ; &H, [::';1P"1 ]

[j ;'ffil*iJ: [JI ][:il ]" [;]

Petition [under Section 151 CPC ][praying ][that ][in ][the ][circumstances ][stated ][in]the affidavit [filed in ][support of ][the ][petition, ][the ][High ][court ][may ][be pleased ][to ][vacate]the lnterim [order ][dated ][1Ol11l2o21passed ][in w.P.No.28136 ][ot ][2021 ][on ][the file ][of]this Hon'ble [Court and ][dismiss ][the ][Writ ][Petition ][No ][28136 ][of ][2021 ][filed by ][the]petitioners [against ][the ][Respondent ][No ][l ][Bank ][in ][the ][interest ][of ]['lustice ][with]exemPlarY [cost']

IANO:3[OF][ 20][21]

Between:

Ir,4/sAaditriHousingPrivateLimited'DNo8-2-2931.821A1234and235'TF-13'dfloor'Emoire square, [noao ][ruo ][iol il"i!;nZ''c"r;ly' ]iy^ t"" [Hills' ][Hvderabad ][-Telangana']'R[lI;yilffiiiioii."o signuioni vr*inr"i [Nageiwara Rao' ][S/o ][Venkateswara Kao]

...PETITIONEFYRESPONDENT [NO.2]

AND

1. Sudalagunta [Sugar Private Limited' ][TP Area' ][Opp: Bus ][Stand Tirupathi-]517501, neptEJJn"i"o [uv ][iii ][oirector' ][SudSlasunla ]J,lyg*q 9S*^11'v517501, neptEJJn"i"o [uv ][iii ][oirector' ][SudSlasunla ]J,lyg*q 9S*^11'v2. - Sudalagunt, y;;", b"C, d;4ru;;, iivuii' [bnowdary' ]R/; rP [S]o ]Area' .Penchal opp: [Naidu' Aged about ][Bus ][stand ][rirupathi][71]517501'od' 517501'od'

'od' 3.sudalaguntaRamanaiahNaidu,S/oLatePanchalNaidu,Agedabout60- i"urr, b"., eriin;si, R/o D.ruo.zoc, D No l9-3-20/Gl ' Kakathiva Nagar'TiruPathi-5'1 7501TiruPathi-5'1 7501

+. suditagunta Agro [Mills ][Limited,209, ][TP ][Are_a, ][opp: ][Bus-Stand Tirupathi-]srTsol] A.P. [R-ep. ][by its Managing Director, S ][K ][Kalyan Kumar]srTsol] A.P. [R-ep. ][by its Managing Director, S ][K ][Kalyan Kumar]

..TRESPONDENTSM/RIT [PETITIONERS]

5. State Bank of lndia, Stressed [Assets ][Management Branch-|1,,1't ][Floor,]

CAC, TSRTC Bus Station, Kachiguda [Hyderabad ][-500027. ][Rep.by ][its]Authorized OfficerAuthorized Officer

..,RESPONDENT/RESPONDENT [NO.1]

Petition under Sbction ['l ]51 CPC [praying ]that in the circumstances stated inthe affidavit filed in support of the petition, the High Court may be pleased to vacatethe interim orders dated 1011112021 passed in W.P.No. 28'136 of 2021 and lodismiss the W.P. No. 281 36 of 2021 with exemplary costs in the interest of justice.

Counsel for the Petitioner in both the Petitions: Mr. DAMMALAPATI SRINIVAS,SENIOR COUNSEL FOR SRI VIMAL VARMA VASI REDDY

Counsel for the Respondent No.1 in both the Petitions:

SRI PODILA HARI PRASAD

Counsel for the Respondent No.2 in both the Petitions:

MT. A. SUDARSHAN REDDY,Sr. COUNSEL FOR Mr. ROHIT POGULASr. COUNSEL FOR Mr. ROHIT POGULA

The Court made the following: COMMON ORDER

HONOURABLE SRI JUS-IICE UJJAL BHUYAN

HONOURABLE SMTJUSTICE P. MADHAVI DEVI

f

COmmon Order: pr Hot,bh J.n.luttie Liia/ tsba.tat)

Tlris order will dispose of bodr wp.Nos.1235 6 and 2g136 of2021.

2. We have heard Mr. Dammalapati Srinivas, lcarned SeniorCounsei for the petitior.rers; Mr. podila Hari prasad, learned c.u,sellor respo,dent No.l /State Bank of Inclia; ancl Mr. A.SudarshanReddy, lcamcd Senior Counsel appcaring on behalf of Mr. RohitPogula, learncd counsel for respondent No.2/auction purchaser.3. Writ Petition No.12356 of Zt)21. has been f,ted by the petitionersfor quashing of docket order dated 05.05.2021 passed by the DebtsRecovery Tribunal-I at I{yderabad (for short 'tl-re Tribuna.l') inLA.No.438 of 2021in S.A.No.45 of 2021,.

4. It may be mentioned that petitior.rers had availed loan [romrespondent No.1, b,-,t defaulted in repayment. As a consequence,respondent No.1 initiated procecdings asainst thc [peritioners ][under]the provisions of the Securitisation [and ][Reconstruction ][of ][Financial]Asscts ancl llnFrrrcement of [Securiry ][Interest ][,\ct ][(for ][short ]['the]SARFAI|SI Act'). Pursuant [thereto, ][sale ][notice ][dzted25'03'2021 ][was"...]issucd by respon<lent [No.1 ][lor ][auction ][salc ][of ][the ][secured ][asset ][on]06.05.2021.

5. Aggrieved [by ][the aforesaid' ][petitioners ][approached ][the'I'ribunal]by filing [Securitisation ][Application ][under ][Section ][17 ][of ][the]SARFAESI [Act, which ][has been ][re5;istered ][as S.A.No.45 ][of ][2021.]Petitioners [have also frled ][I'A'No'4 ][38 ][of ][2027 ][for ][stay ][of ][the ][auction]sale. [B-v ][docket ][order dated ][05'05'2021' ]['l'ribunai noted ][that]petitioners [had ][already ][filed S'A'No'31 ][of ][2020 ][rvherein conditional]was [granted, ][but ][petitioners ][failed ][to ][complv ][with ][the condirions']stay T'herefore, [stay ][was ][declined' ][Respondent ][No'1 ][was ][granted ][[berty ][to]proceed [with ][the ][auction ][sale, ][but ][it ][was ][clanfied ][that ][the ][auction ][sale]woul<l bc [subiect ][to ][outcome ][of S'A'No'45 ][of ][2021 ][']

6. It is [this ][order, rvhich ][is ][under ][challenge ][in ][W'P'No'12356 ][of]2021. This Crurt, [by ][order ][dated ][13'05'2(121 ][had ][restrained]respondent No.1 from [confirming the ][sale ][including ][issuance ][of ][sale]certificate of the schedule [properties.]

7. Allegrng that despite the aforesaid [restraint ][order ][of ][this ][Court,]respondent No.1 issued sale certificate to the auction [purchaser ][r.e..]respondent No.2 and challengrng such sale confirmatir>n, petitionerfiled W.P.No.28136 ol 2021.

8. On 1.0.11..21)21, thc following order came t() bc passed:

"i)1, filirrg dris petrtion unrlcr ,\rticlc 226 <tf thcConstitution of ltdia, petitiolers have challengecl thc legalin- andvalidiry of thc certificate of sale dated 20.()5.2021 issued unclerRule 9(6) of Security Interest (Lnforcement) Rules. 2002 by theAuthorised C)fficer of tespondent No.1.

Sn l)ammalapati Srinivas, leamed Senior Counsel for thepetrtroners subrnits that otr the sarne subject matter petiuotrers had apptoached this Couri eadiet b'v filing v'P'No.12356 of2021. vt12ygi11rhis court passcd an order .n r3.0s.2021rssuurg nodce ooo r.r,.^*r'uu from co,firm,rgthe sare, -:t #:*;::::::H::::the schedure propertres pending crrsposal of the subject writpetrtion. He submits that ne6yil65gunclilg the clear restramtorder of this court, responclent No.1 had gone ahead ancl issuedthe certrficate of sale clated 20.05.2021,.

Issue noticc.

Petitrorrcrs to scrve the respondents rhr, rugh courr pr()cess.In thc meanrvhile, there shall be stay of the rmpugneclIn thc meanrvhile, there shall be stay of the rmpugneclcertiEcate of salc clated 20.05.2021.,,

9. After hearing learned coursel for thc parties ar_rd on perusal ofthe materials on rccord, rve find that S.A.No.45 of 2021 is stdl'l'ribunal. pending before the In sucl.r circumstances, it would be justar.rd propcr if the parties are relegated ro the forum of the Tribu,al foran eady ad judicatior.r of the aforesaid securitisario, Application.Ilowever, we have been informed that regular functioning of theTribunal l-ras been ha,mpered as the office of presiding officer isvacant.

10. We therefore, direct that S.A.No.45 of 202.1, pendi,g before the'rribunal may be heard expeditiously rvithin a period of six monthsfrom sucl.r dme the Tribuna.l starts functioning regularly.11 . ,l talu.r En as on today as regards the secured asset shall beI, maintained bv thc parties concerned ti-ll such time regular functioningof the T'ribunal commences. Thereafter, we leave it to the discretionof the Tribunal to pass such order as may be deemed fit and proper.

1

Related [interirn]

12. [Writ ][Petiuons are' ][accordingly' ][<lisposed ][of']

applications [are ][also disposed ][of']

13. No costs'

SD/.T.KRISHNA KUMARASSISTANT REGISTRAR

G0SECTION OFFICER

//TRUE COPY//

To,'1 . The Authorized Officer, State Bank of lndia, SAIV Branch-ll TSRTC Bus StationKachiguda Hyderabad -500 027.2. One CC to Sri Vrmal Varma Vasi Reddy, Advocate [OPUC]3. One CC to Sri Podila Hari Prasad, Advocate [OPUC]4. One CC to IVlr. Rohit Pogula, Advocate (OPUC)5- Two CD Copies.6. One Spare Copy.MPSW

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HIGH [COURT]

DATED:3011212021

COMMON ORDER

WP.NOs.12356 & 28136 OF [2021]

DISPOSING OF THE WRIT PETITIONSWITHOUT COSTS

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