J. VEERAIAH Vs. INDIAN OVERSEAS BANK

JUDGEMENT

(1.) The petitioners in W.P.No.6426 of 2016, eight in number, claim to be the tenants in possession of the property bearing Municipal No. 13-4-752, Sabzimandi, Karwan, Mehdipatnam, Hyderabad. The original owners of the said property were late Jalla Sattaiah and late Jalla Lachaiah. The petitioners claim to have obtained lease deeds from late Jalla Sattaiah and the legal heirs of late Jalla Lachaiah. They claim protection under the Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960.

(2.) The five petitioners in W.P.No.6089 of 2016 are the legal heirs of late Jalla Lachaiah and late Jalla Sattaiah. They claim to be co-sharers of the property in question. Petitioners 3 to 5 claim to be living in the said property along with the tenants. It is an admitted fact that late Jalla Sattaiah was a guarantor for the loan availed by M/s. Vasavi Enterprises, Hyderabad, the 2nd respondent in both writ petitions, from Indian Overseas Bank, Hyderabad, the 1st respondent in both cases. The said loan account was classified as a non-performing asset owing to the default committed in repayment thereof. The 1st respondent bank thereupon issued a demand notice under Sec. 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), calling upon the 2nd respondent to repay the sum of Rs.6,00,05,867.00. Failure to comply led to measures being initiated by the 1st respondent bank under Sec. 13(4) of the SARFAESI Act.

(3.) The 1st respondent bank invoked the power of the learned Chief Metropolitan Magistrate, Hyderabad, under Sec. 14 of the SARFAESI Act to obtain possession of the secured asset, vide Crl.M.P.No.2976 of 2015. By order dated 22.01.2016 passed therein, the learned Chief Metropolitan Magistrate, Hyderabad, appointed an Advocate Commissioner to take possession of the secured asset and deliver the same to the bank. Pursuant thereto, the Advocate Commissioner issued notice dated 12.02.2016 informing the occupants of the subject property to vacate and hand over its possession to him. This led to the filing of these writ petitions.