Telangana High Court

WP/41079/2014 of Rekha Ponnaganti Vs Andhra Bank, on 31 December 2014

Cites 0, Cited by 0

SRI JUSTICE K.C.BHANU AND THE HON’BLE MRS JUSTICE ANIS WRIT PETITION No.41079 OF 2014 ORDER:- (per Hon’ble Sri Justice K.C.Bhanu) This writ petition is filed seeking to issue a Writ of Mandamus declaring the action of the respondents in treating the Educational Loan Account

Citations and Judicial Treatment

No citing decisions in the index yet

Cited by

0

Decisions in the index citing it

Cites

0

Decisions referred to

In this index

0

Of the decisions it cites

Overruled / Questioned

0

No negative treatment found

Loading the citing and cited decisions…

THE HON'BLE SRI JUSTICE K.C.BHANUAND

THE HON’BLE MRS JUSTICE ANIS

WRIT PETITION No.41079 OF 2014

ORDER:- (per Hon’ble Sri Justice K.C.Bhanu)

This writ petition is filed seeking to issue a Writ of Mandamusdeclaring the action of the respondents in treating the EducationalLoan Account No.020130031000850 as Non-Performing Asset under the provisions of the Securitization andReconstruction of Financial Assets and Enforcement of SecurityInterest Act, 2002 (for short, “the SARFAESI Act”) and also the demandnotice, dated 30.08.2014, published in Hindu Daily on 11.10.2014 asillegal and arbitrary.

2. Petitioner No.1 obtained educational loan of Rs.6.00 lakhs fromthe respondent Bank to prosecute her higher studies in M.S. two yearscourse in United States of America. She paid some instalments andlater, committed default in repayment of the entire loan amount. Theloan was declared as Non-performing Asset (N.P.A.). RespondentNo.3 published a notice under Section 13(2) of the SARFAESI Act,dated 30.08.2014, in Hindu Daily News paper on 11.10.2014.According to the petitioners, they paid the entire loan amount due tothe Bank and according to the respondent Bank, the petitioners aredue an amount of Rs.6,06,958/- as on 30.07.2014 with subsequentinterest as per the agreement.

3. Learned counsel for the petitioners contended that withoutissuing a notice under Section 13(2) of the SARFAESI Act, therespondent Bank is proceeding further; that all the loan instalmentsdue to the respondent Bank have been paid; that under sub-section(3A) of Section 13 of the SARFAESI Act, on receipt of the notice undersub-section (3), if the borrower makes any representation or raises any objection, the Bank shall consider such representation or objectionand if the secured creditor comes to a conclusion that suchrepresentation or objection is not acceptable or tenable, he shallcommunicate the same within fifteen days of receipt of suchrepresentation or objection the reasons for rejecting the representationand therefore, he prays to admit the writ petition.

4. Since the demand notice, dated 30.08.2014, is in dispute and thecontentions raised by the learned counsel for the petitioners arerelating to the questions of fact, they cannot be determined by thisCourt. Whether the respondent Bank issued a notice under Section13(2) of the SARFAESI Act to the petitioners, whether the petitionersmade a representation to the respondent Bank and whether thepetitioners paid all the instalments or not are to be pleaded and provedbefore the Debts Recovery Tribunal. Therefore, the petitioners are atliberty to approach the Debts Recovery Tribunal under Section 17 ofthe SARFAESI Act and raise all these contentions there.

5. Accordingly, the Writ Petition is dismissed. There shall be noorder as to costs. Miscellaneous Petitions, if any, pending in this WritPetition shall stand closed.

______________________

JUSTICE K.C.BHANU

_______________

JUSTICE ANIS

Date: 31.12.2014

AMD

THE HON'BLE SRI JUSTICE K.C.BHANUAND

THE HON’BLE MRS JUSTICE ANIS

WRIT PETITION No.41079 OF 2014

DATE: 31.12.2014

AMD

You have used today's free searches. Sign in, for free, to keep searching without a limit.

Compass reads the judgments for you and finds the paragraphs for and against your question. Sign in to use it.

My Vault follows judgments for you and records every later decision that cites them. Sign in to keep one.

Sign in to download the court's PDF. The full text stays free to read here.

Sign in, for free, to download the court copy. Reading the full text here stays open to everyone.

Search and read Indian judgments without limits, save them to My Vault and find the relevant paragraphs with Compass.

Open the sign-in page instead