WP/24041/2004 of Sri Dhavuluri Raghuram Prasad Vs State Bank of India, Overseas Brach, on 29 December 2004

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD

(Special Original Jurisdiction)

WEDNESDAY, THE TWENTY NINTH DAY OF DECEMBERTWO THOUSAND AND FOUR

PRESENT

THE HON'BLE SRI DEVINDER GUPTA,THE CHIEF JUSTICE

and

THE HON'BLE MR JUSTICE M.NARAYANA REDDY

WRIT PETITION NO : 24041 of 2004

Between:

1 Sri Dhavuluri Raghuram Prasad S/o.D.Chenchuramaiah Chairman of M/s. Madhavi Sea Food Exports (P) Ltd., residing at JupiterResidence House No.B-1, Opposite Cosmo Club, Suryanarayanapuram Bhimavaram 534 002.

2 Sri Kommieni Rama Krishna S/o.Sri Vidyasagar, Executive Director, M/s. Madhavi Sea Food Exports (P) Ltd., R/o. Intur Village, Amartaluru Mandal, Guntur District.

3 Sri D.Chenchuramiah S/o. Late Raghavaiah, Chairman of M/s. Madhavi SeaFood Exports (P) Ltd., residing at D.No.27-17-75, Vijaya Buidling Society Building, Bhimavaram-534202

4 Sri Yedlapati Raghunath S/o.Sudhakara Rao, Director of M/s. Madhavi Sea Food Exports (P) Ltd., residing at Flat No6, 4th Floor, Nagamalli Enclave, Maharanipeta, Visakhapatnam.530002.

5 Sri Kommineni Vidya Sagar S/o.Nagabhushanam, Residing at Intur Post 522341, Guntur District.

6 Smt.Yedlapati Mythili Kumari W/o.Sudhakara Rao, residing at Flat No.6,4th Floor Nagamalli Enclave, Maharanipeta, Visakhapatnam.

7 Smt.Myneni Haritha W/o.Kameswara Rao

Residing at Intur Post, Guntur District.

AND

State Bank of India, Overseas Branch, Resapuvanipalem, Visakhapatnam, by itsChief Manager.

.....RESPONDENT

Petition under Article 226 of the constitution of India praying that in thecircumstances stated in the Affidavit filed herein the High Court will be pleased toissue a writ of Mandamus or any other appropriate writ or order or direction quashingthe notice dated 19.8.2004 issued by the respondent under Section 13 (4) of theSecuritisation and Reconstruction of Financial Assets and Enforcement of SecurityInterest Act 2002, illegal and void, and to pass such other order or orders.

Counsel for the Petitioners: MR.S.V.S.CHOWDARY

Counsel for the Respondent No.1: MR.DEEPAK BHATTACHARJEE

The Court made the following Oral Order: (per Sri Devinder Gupta, CJ)

The grievance of the petitioners is against the action of the respondents in issuingnotice under Section 13(2) of Securitisation and Reconstruction of Financial Assetsand Enforcement of Security Interest Act, 2002 (for short ‘the Act’), against thepetitioners qua the mortgaged property, which also includes agricultural land.

Section 31(i) of the Act says that provisions of this Act shall not apply to any securityinterest created in agricultural land.

In this view of the matter, we allow the writ petition and set aside the notice issued tothe petitioners under Section 13(2) of the Act qua the property, which has beendescribed therein as agricultural land. For the remaining property, in case,petitioners have any grievance, they are at liberty to seek appropriate remedy inaccordance with law.

The writ petition is accordingly allowed. No costs.

______________________

DEVINDER GUPTA, CJ

Date: 29[th] December, 2004

_______________________

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