HOTEL PERAL CITY Vs. DEBTS RECOVERY TRIBUNAL

JUDGEMENT

(1.) Challenge in this writ petition is to the order dated 20.01.2016 passed by the Debts Recovery Tribunal, Hyderabad (for brevity, 'the Tribunal'), in S.A. No.364 of 2012. This S.A. was filed by the petitioner herein under Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity, 'the SARFAESI Act'), assailing the tender/auction notice dated 30.06.2012 issued by the Canara Bank, Asset Recovery Management Branch, Hyderabad, fixing the date of the auction sale of the secured asset on 10.08.2012 and to set aside all the measures taken by the bank under the SARFAESI Act. By the order under challenge, the Tribunal dismissed the S.A.

(2.) By order dated 204.2016, this Court granted interim suspension of the order under challenge for a period of eight weeks. The last extension of the said interim order was on 14.06.2016 upto the next hearing. The matter was thereafter listed in July, 2016, but there was no further extension. Thus, as on date, there is no interim order subsisting in the writ petition.

(3.) The petitioner is a proprietary concern which was originally founded by one Konda Veeresh Murthy. He availed financial assistance from the respondent bank but owing to the default committed in repayment, his account was declared a non-performing asset. Demand notice dated 29.10.2004 was issued by the bank under Section 13(2) of the SARFAESI Act and the same was served upon Konda Veeresh Murthy and others on 01.12.2004. Possession notice under Section 13(4) read with Rule 8(1) of the Security Interest (Enforcement) Rules, 2002 (for brevity, 'the Rules of 2002'), was served upon him on 30.02005. As the borrower failed to deliver possession of the secured asset, the bank approached the learned Chief Metropolitan Magistrate, Hyderabad, under Section 14 of the SARFAESI Act. Aggrieved thereby, Konda Veeresh Murthy filed S.A.No.77 of 2005 before the Tribunal. Therein, he secured stay of all further proceedings by the bank vide order dated 07.04.2005. However, the said S.A. was dismissed for default on 29.09.2005. Konda Veeresh Murthy died on 29.10.2005. On 18.01.2006, the present proprietrix of the petitioner concern, Konda Anuradha, the widow of Konda Veeresh Murthy, addressed a letter informing the bank that Konda Veeresh Murthy had expired and seeking time to repay the debt under a one time settlement. She expressed willingness to deposit 25% of the amount due within 12 weeks of approval and the balance within one year.