D. SRIKANTH Vs. INDUSTRIAL DEVELOPMENT BANK OF INDIA

JUDGEMENT

(1.) THE petitioner is a guarantor and a Director of the 3rd respondent, a principal borrower, who had defaulted on a liability to the 1st respondent -bank. He assails a letter dated 9 -3 -2007 issued by the 2nd respondent, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the Act'), in respect of an issue pending consideration before the Debts Recovery Tribunal, Hyderabad (for short 'the Tribunal') in O.A. No. 308 of 2000.

(2.) THE 1st respondent filed O.A. No. 308 of 2000 before the Tribunal for recovery of an amount of Rs. 5,79,21,207 against the 3rd respondent. The petitioner is also a respondent to the O.A. since he had executed a guarantee agreement in respect of the loan availed by the 3rd respondent -company. According to the petitioner, some pleadings have been filed in the O.A. and the O.A. is pending adjudication before the Tribunal. In the O.A., the 1st respondent -bank had filed I.A. No. 247 of 2001, seeking appointment of a receiver for taking possession of the property mortgaged to the 1st respondent and for sale of the same. The Tribunal appointed an advocate commissioner by the orders dated 5 -9 -2001 and the advocate commissioner/receiver took possession of the properties. The Tribunal had directed the receiver to take all necessary steps for selling the properties. No sale has however taken place, as yet.

(3.) THE 1st respondent also filed an interlocutory application in O.A. No. 308 of 2000 on 25 -1 -2007 for advancement of the hearing of the O.A. It is pleaded that the Tribunal had listed O.A. No. 308 of 2000 on 12 -2 -2007, for a further process of adjudication. It is also alleged that the 1st respondent did not move any application in O.A. No. 308 of 2000 for either withdrawal of the O.A. or withdrawal of the earlier order in I.A. No. 247 of 2001, whereunder a commissioner/receiver was appointed to take possession of the secured assets.