NAFEES SULTANA, W/O LATE MOHD. NARSULLAH KHAN AND FOUR OTHERS Vs. THE AUTHORISED OFFICER/GENERAL MANAGER T. SOMANADHAM, RAJADHANI CO

JUDGEMENT

(1.) - Respondent No. 4-Rajadhani Co-Operative Urban Bank Limited is the secured creditor of the petitioners. As the petitioners failed to repay the loan amounts, the bank has initiated arbitration proceedings. After hearing both sides, the Arbitrator/Deputy Registrar/Divisional Co-Operative Officer, Hyderabad has passed his award, dated 25.8.2010, in A.R.C. No. 12 of 2010. The said award was questioned by the petitioners before the Co-Operative Tribunal at Hyderabad, vide C.T.A. No. 27 of 2012. By order, dated 11.6.2015, the said award was set aside by the Tribunal inter alia with the following observations:

(2.) Post disposal of the afore-mentioned appeal by the Tribunal, the bank has issued demand notice to the petitioners under Section-13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'SARFAESI Act') besides issuing the possession notice under Rule-8(1) of the Security Interest (Enforcement) Rules, 2002, on 06.01.2016.

(3.) Feeling aggrieved by these proceedings, the petitioners filed the present Writ Petition for issuance of Mandamus to restrain respondent No. 1 from initiating any action under the provisions of the SARFAESI Act.