RAMAKANTHINANI Vs. MADHUKAR R. BHANGAY

JUDGEMENT

(1.) THIS Miscellaneous Appeal under Section 20 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred as "RDDBFI Act") has been directed by the Auction Purchasers against the judgment and order dated 23rd December, 2009 passed by the learned Presiding Officer (learned P.O.), D.R.T., Hyderabad, (Andhra Pradesh) in R.A. No. 3/2009 arising out of the Miscellaneous Petition (M.P.) No. 11/2006 in Recovery Proceeding (R.P.) No. 33/2002, whereby the learned. P.O. has allowed the Appeal filed by respondent No. 1 under Section 30 of the RDDBFI Act against the order dated 5th June, 2009 passed by the then Recovery Officer in M.P. No. 11/2006 in R.P. No. 33/2002, whereby he had dismissed petition filed by the Applicant/respondent No. 1 under Rules 57 and 58 of the Second Schedule to the Income -tax Act, 1961 for setting aside the auction sale dated 9th January, 2003 conducted by him in R.P. No. 33/2002 in which the appellant, Mr. Ramakanth Inani and family were declared as successful purchasers. The relevant facts giving rise to the present Appeal may be summarized as under:

(2.) THE respondent No. 2, Auriferous Aqua Farms Ltd., a Company incorporated under the Indian Companies Act, 1956, having its Registered Office at 10.1.27/1, Masab Tank, Hyderabad, A.P., involved in carrying on business of shrimp culture, availed Working Capital Loan Facility (WCLF) of Rs. 3,79,00,000/ - (Rupees three crores seventy -nine lacs only) sanctioned by respondent No. 6, the State Bank of India with the following sub -limits:

(3.) THE respondent No. 1, Shri Madhukar R. Bhangay and respondent No. 3, Mr. J. Sridhar Reddy created equitable mortgage of their following immovable properties in favour of respondent No. 6 to secure the amount of loan availed by respondent No. 2 by depositing the title deeds: