V K SEKHAR Vs. INDIAN BANK

JUDGEMENT

(1.) This writ petition is filed seeking a declaration that the Auction Notice dated 16-1-2006 issued by the 1st respondent Bank proposing to sell the properties belonging to the petitioner under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is arbitrary and illegal.

(2.) It is not in dispute that the writ petitioner having availed a loan from the 1st respondent Bank for establishment of a poultry farm, by mortgaging certain immovable properties as security, committed default in discharging the same and consequently the account was classified as non-performing asset. Thereafter, the respondents while invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, 'the Securitisation Act, 2002), issued a notice dated 13-9-2005 under Section 13(2) calling upon the petitioner to pay the amount due within 60 days. Since the petitioner failed to comply with the same, the respondents in exercise of powers under Section 13(4) of the Act had taken possession of the secured assets on 28-9-2005 and 3-12-2005 and proposed to sell the same under the impugned Notice by inviting tenders.

(3.) It is to be noted that by that time O.A. No.204 of 2005 filed by the 1st respondent Bank against the petitioner for recovery of the amounts due under the very same loan account was pending in the Debts Recovery Tribunal, Hyderabad.