GOWDA RAMESH Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) M/S.Manikanta Spinning Mill Private Limited, Sircilla District (hitherto, Karimnagar District), availed loan facilities from the State Bank of India, Sircilla Branch (for brevity, 'the bank'). Default having been committed in repayment, the loan account was declared a non-performing asset. Proceedings were initiated by the bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for brevity, 'the SARFAESI Act'), resulting in sale of the secured assets, viz., the plots in H.No.12-5-122 (223.75 square yards) and H.No.12-5-123 & H.No.12-5-124 (total extent of 653.50 square yards), situated at Gopal Nagar, Kamareddy Road, Sircilla District, on 15.09.2016. Thereby, M/s.Sri Sai Enterprises, Sircilla, emerged the highest bidder. Registered Sale Certificate dated 10.11.2017 was also executed in its favour by the bank. The said sale was challenged by Gowda Ramesh, the Managing Director of the borrower company, in W.P.No.32302 of 2016.

(2.) Before resorting to the aforestated sale, the bank had addressed letter dated 31.03.2016 to the borrower company advising it to settle its dues under a One Time Settlement (OTS) scheme recently brought out by it in manufacturing, trade and services sectors. The borrower company responded positively thereto under letter dated 06.02.2017, long after the sale on 15.09.2016. Thereafter, by its later letter dated 08.02.2017, the bank advised the borrower company that its account was not eligible under the OTS scheme. Aggrieved thereby, the borrower company filed W.P.No.14650 of 2018.

(3.) Both these writ petitions came to be dismissed by a Division Bench of the High Court at Hyderabad for the State of Telangana and the State of Andhra Pradesh, vide common order dated 13.11.2018. Seeking review of the aforestated common order, the petitioners in these two cases filed applications under Order 47 Rule 1 CPC.