WP/40613/2014 of Muddu Srinivasa Babu Katula, Vs The State Bank of India, on 30 December 2014

THE HON'BLE SRI JUSTICE K.C.BHANUAND

THE HON’BLE MRS JUSTICE ANIS

WRIT PETITION No.40613 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 respondent in issuing demand notice, dated05.09.2014, under Section 13(2) of the Securitization andReconstruction of Financial Assets and Enforcement of SecurityInterest Act, 2002 (for short, “the SARFAESI Act”) on 22.09.2014 andfurther coercing the petitioner in giving a letter, dated 22.09.2014,stating that the petitioner would close the loan account by paying theentire amount or by paying Rs.4.00 lakhs to regularize the loanaccount by 10.11.2014 and submit ECS of Rs.7,000/- from salary orotherwise to take physical possession of the petitioner’s house andauction the same as illegal and arbitrary and consequently, to directthe respondent to give back the possession of the house property i.e,apartment No.310 on the 3[rd] floor in Block ‘D’ admeasuring 630 sft. ofsuper built up area together with proportionate undivided share of landto an extent of 25.83 sq.yds and a reserved scooter parking space inBlock ‘D’ admeasuring about 15 sft. forming part of the group ofresidential apartments collectively named as ‘The Gardenia’ situatedat Jeedimetla Village, Quthubullapur Mandal and Municipality, RangaReddy District, which have been seized by the respondent on05.12.2014, without following the due process of law by receiving thedue amount on the Equated Monthly Instalments (E.M.I.) and byregularizing the loan account.

2. The petitioner, along with his Ex-wife, obtained a housing loan of Rs.5,24,000/- on 29.03.2006 from the respondent Bank to be repaid in240 E.M.Is at Rs.4,799/-. He made some payments and later,committed default in payment of the entire loan amount. Therefore, hisloan was declared as Non-performing asset and a demand notice,dated 05.09.2014, was issued by the respondent Bank under Section13(2) of the SARFAESI Act demanding to repay the entire loan amountof Rs.9,12,095/-. The officials of the respondent Bank coerced thepetitioner to write the aforementioned letter. Hence, he filed thepresent writ petition.

3. Learned counsel for the petitioner contended that the respondentBank is demanding to pay the entire outstanding amount by imposingsurcharge and penalties for the next 12 years, which is unreasonable,and hence, he prays to give a direction to the respondent Bank to giveback the possession of the aforementioned house property.

4. On the other hand, learned Standing Counsel appearing for therespondent Bank contended that it is disputed question of fact, whichcannot be adjudicated before this Court and hence, he prays todismiss the writ petition.

5. The question as to whether the action of the respondent Bank indemanding to pay the entire outstanding amount by imposingsurcharge and penalties for the next 12 years is legal or not has to bedecided by the Debts Recovery Tribunal. Therefore, the petitioner is atliberty to approach the Debts Recovery Tribunal under Section 17 ofthe SARFAESI Act. However, we direct the respondent Bank tofurnish a statement of account with regard to the outstanding amountdue to the Bank to the petitioner within a period of fifteen (15) daysfrom the date of receipt of a copy of this order.

6. With the above direction, the writ petition is disposed of. Thereshall be no order as to costs. Miscellaneous Petitions, if any, pending in this Writ Petition shall stand closed.

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JUSTICE K.C.BHANU

Date: 30.12.2014AMD

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JUSTICE ANIS

THE HON'BLE SRI JUSTICE K.C.BHANUANDTHE HON’BLE MRS JUSTICE ANIS

WRIT PETITION No.40613 OF 2014

DATE: 30.12.2014

AMD