WP/35776/2013 of Sri Grandhi Venkataramanayya Vs The District Collector AND Magistrate on 31 December 2013

1. Grandhi Venkataramanayya & another. … Petitioners

And

1. The District Collector & Magistrate,

Vizianagaram District, A.P., & 2 others.

… Respondents

* * *

HON’BLE Ms. JUSTICE G. ROHINIandHON’BLE SRI JUSTICE T. SUNIL CHOWDARY

WRIT PETITION No.35776 of 2013

O R D E R: (Per Hon’ble Ms. Justice G. Rohini)

Having initiated proceedings under the Securitization andReconstruction of Financial Assets and Enforcement of SecurityInterest Act, 2002 (SARFAESI Act), the 2[nd] respondent Bankissued the demand notice dated 02.08.2013 under Section 13(2). It is pleaded in the writ petition that the petitioners submitted detailed objections dated 26.10.2013contending inter alia that the provisions of the SARFAESI Actcannot be invoked by the 2[nd] respondent Bank. The grievance ofthe petitioners is that without considering the said objections, the2[nd] respondent issued possession notice under Section 13(4) ofthe SARFAESI Act.

We have heard the learned counsel for both the parties.

Having regard to the settled legal position that under sub-section (3A) of Section 13 of the SARFAESI Act, the securedcreditor is bound to consider the objections raised in response tothe demand notice and communicate the reasons for non-acceptance of the objections before proceeding further, we findforce in the submission of the learned counsel for the petitionerthat the impugned possession notice is not sustainable.

Accordingly, the impugned possession notice dated25.10.2013 is set aside and the writ petition is disposed of with adirection to the 2[nd] respondent Bank to consider the objectionsdated 26.10.2013 raised by the petitioners and pass appropriateorder as provided under sub-section (3A) of Section 13 of theSARFAESI Act before taking any further steps as provided underlaw.

W.P.M.P. No.44488 of 2013 shall stand closed inconsequence. No costs.

______________G. ROHINI, J

Date: December 31, 2013.BSB

__________________________

T. SUNIL CHOWDARY, J

WRIT PETITION No.35776 of 2013 (Per Hon’ble Ms. Justice G. Rohini)

BSB

Date: December 31, 2013