SHAFTEK INFRASTRUCTURE PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard Sri A.Venkatesh, learned Senior Counsel representing Ms.Kota Lakshmi Sai Sirisha, learned counsel for the petitioners, Sri A.Satyanarayana, learned Senior Counsel representing Smt.Ch.Laxmi Chaya, learned counsel appearing for respondent No.2 Bank and Sri Ramakanth Reddy, learned counsel for respondent Nos.3 and 4.

(2.) The present Writ Petition is filed assailing the action of the respondent No.2 Bank in initiating proceedings under The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short "˜the Act') and issuing of Demand Notice dtd. 1/7/2024 under Sec. 13(2) of the Act and subsequent Possession Notice under Sec. 13(4) of the Act dtd. 2/9/2024 and thereupon proceeding with the auction and sale of the subject property and notice dtd. 24/9/2024 as well as notice of taking possession dtd. 13/10/2025 without complying with Sec. 26D of the Act, as arbitrary and illegal and a consequential direction to set aside the proceedings initiated by respondent No.2 under SARFAESI Act and handover the possession of the subject land.

(3.) The facts leading to filing of the present Writ Petition are that petitioner No.1 is engaged in the business of erecting and fabricating works for cell phone towers. Respondent No.2 had offered overdraft facility to petitioner No.1. In the year 2016, petitioner No.1 approached the respondent No.2 Bank for financial assistance, upon which, the Bank extended overdraft facilities sanctioning an amount of Rs.3,75,00,000.00 in favour of petitioner No.1. The subject overdraft facility stands secured by collateral, comprising a residential house bearing H.No.11/13/362/2, on Plot No.65, admeasuring 298 sq. yards situated at Alkapuri Colony, Saroornagar, Hyderabad (for short "˜the schedule property'), which is the ancestral property of petitioner No.2, who is one of the Directors of petitioner No.1 company. Against the said security property, a suit for partition vide O.S. No. 574 of 2024, is presently pending before the I Additional Senior Civil Judge, Ranga Reddy District, wherein the rights and interests of the co-owners are under adjudication.