WASY SHAKEEL ANSARI Vs. MANAGING DIRECTOR, CHARMINAR BANK

JUDGEMENT

(1.) W.P. No. 15371 of 2008 was filed questioning the action of the respondent -Bank in not releasing the collateral security papers even after payment of full and final debt amount as per One Time Settlement Scheme on the demand made by the respondent -Bank, Purani Haveli Branch vide A/c. No. 34/2000. The petitioner also filed W.P. No. 560 of 2011 questioning the illegal action of the respondent -Bank in issuing sale notice dated 16.12.2010 in E.P. No. 2 of 2003 and putting the property relating to A & B Schedules for sale and proposing to conduct auction on 25.01.2011.

(2.) The case of the petitioner was that he is the proprietor of Al -Ansari Poultry Farm. He availed loan of Rs. 25,00,000/ - from the respondent -Bank, Purani Haveli Branch, for development of poultry farm by mortgaging the property house bearing H. No. 12 -2 -458/3, comprising of ground and first floors situated at Gudimalkapur, Hyderabad. In the year 2001 as bird flu was affected, the petitioner could not pay the monthly instalments of loan to the respondent -Bank. While so, in the year 2007 the respondent -Bank introduced One Time Settlement (OTS) Scheme. Accordingly the petitioner made a representation to the respondent -Bank to avail OTS facility. The respondent -Bank issued notice dated 26.12.2007 informing the petitioner that they have accepted the offer made by the petitioner and directed him to pay a sum of Rs. 18,00,000/ - towards full and final settlement of outstanding loan amount within a period of one week. Accordingly the petitioner paid Rs. 18,00,000/ - on 27.12.2007 to the respondent -Bank under acknowledgement, and made a representation to the Bank for return of collateral security papers. The respondent -Bank, instead of retuning the documents, issued notice dated 05.01.2008 stating that the petitioner has to pay an amount of Rs. 15,99,074/ - to the Bank as per the modified OTS, towards final settlement of loan amount. Challenging the action of the respondents in not releasing the collateral security papers, the petitioner filed W.P. No. 15371 of 2008.

(3.) As the petitioner did not pay the said modified amount, the respondent -Bank initiated Arbitration Proceedings vide A.R.C. No. 19029 of 2002 before the Arbitrator under Sec. 62 of the Act, and the Arbitrator passed Award dated 23.08.2002 for a sum of Rs. 32,42,468/ -. Even after passing of the Award, as the petitioner did not pay the Award amount, the respondent -Bank filed E.P. No. 2 of 2003 before the Deputy Registrar under Sec. 70(2) of the Act r/w Rule 52 of the A.P. Co -operative Societies Rules, 1964 and sought for auction of the property mortgaged and the same is pending.