K.LEELAVATHI Vs. DEBTS RECOVERY TRIBUNAL, VISAKHAPATNAM

JUDGEMENT

(1.) The writ petitioners K. Leevalathi and Mohd. Rafi filed this writ petition challenging the proceedings initiated by the 2nd respondent - Bank under the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (for short 'the DRT Act') to conduct auction proposed to be held on 13-02- 2014 by issuing notice under Rule 52 (2) of Second Schedule of Income tax Act as arbitrary and illegal.

(2.) It is alleged in the writ petition that the 1st petitioner purchased 35 cents out of 70 cents in the total area of Acs.11.46 cents with D.No.26 of Etukuru Village of Guntur Sub Division in Guntur District from one Shaik Quaisar Khan, W/o Shaik Ibrahim Khan of Lakshmipuram, Guntur on 25-09-2009 for a total consideration of Rs.64,00,000/- and since then she is in possession and enjoyment of the property. The 2nd petitioner purchased 35 cents out of 70 cents in D.No.26 from Shaik Mumtaj Shareef, W/o Shaik Mahaboob Sharif, resident of Cherukupally Village and Mandal, Guntur on 04-04-2013 for a sale consideration of Rs.71,15,000/-.

(3.) Shaik Quaisar Khan stood as a guarantor to Shaik Mahin, Proprietor of M/s. Rubbin Contton Industry, the 3rd respondent herein who obtained loan from the 2nd respondent - Bank and committed default in payment of debt due to the bank.