SRI LAKSHMI AGENCIES Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THIS writ petition, under Article 226 of the Constitution of India, is filed to declare the action of the respondent Bank in issuing possession notice basing on Demand notice, dated 22.6.2013, against the properties of the petitioners without following the due procedure as contemplated under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, 'SARFAESI Act') read with Rule 3 of the Security Interest (Enforcement) Rules, 2002, as arbitrary and illegal and consequently, direct the respondent Bank to drop the proceedings initiated under the SARFAESI Act. Petitioners herein filed Securitisation Application No. 248 of 2013 under Section 17(1) of the SARFAESI Act before the Debts Recovery Tribunal, Visakhapatnam (DRT), with a prayer to strike out the notice issued by respondent Bank under Section 13(4) of the SARFAESI Act and grant stay restraining the respondent Bank from proceeding further till the Securitisation Application is decided. The Presiding Officer, by order, dated 6.1.2014, allowed the Securitisation Application. Operative portion of the order reads as follows:

(2.) LEARNED Counsel for the petitioners contended that notice under Section 13(2) of the SARFAESI Act issued by the respondent Bank is not in accordance with law and therefore, he prays to admit the writ petition.