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2008 DIGILAW 771 (AP)

N. Ramesh Kumar v. Punjab and Sind Bank, Secunderabad

2008-09-15

V.V.S.RAO

body2008
ORDER Petitioners filed writ petition seeking a writ of Mandamus declaring action of first respondent Bank in trying to evict petitioners from Flat No. 102, M.N.R. Apartments, H.No. 12-11-171/1/10, Uppar Basthi, Namala Gundu, Secunderabad, as illegal and arbitrary. Though interlocutory matter, W.P.M.P. No. 34861 of 2005 for an order of injunction against first respondent, is coming before this Court, the matter is involved a short question, heard finally and is being disposed of by this order. 3. First respondent Bank initiated action under Section 13(2) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, for short). Second respondent who is borrower, did not comply with the procedure under Section 13(2), leading to action/notice under Section 13(4) of SARFAESI Act read with Rule 8(1) of Security Interest (Enforcement) Rules 2002 (Security Rules, for short). Petitioners are tenants of two flats belonging to second respondent. They allege that without there being due compliance with requirement of Section 14 of SARFAESI Act and Rule 8 of Security Rules, first respondent Bank took symbolic possession and is trying to sell away property. Petitioners have filed suits being O.S.No. 980 of 2005 and obtained ad interim injunction orders. In spite of the same, as there is eminent danger of being evicted, they filed present writ petition. 4. First respondent has filed counter affidavit, inter alia, stating that as second respondent failed to pay the amount, action was initiated under SARFAESI Act, that pursuant to action under Section 13(4) of the Act, Executive Magistrate took possession. 5. The matter is heard today. Learned Standing Counsel for first respondent Bank has placed before this Court a communication dated 12-9-2008 stating that possession of property is still with Bank since 22-3-2007 and the said property has not been sold so far. There is alternate remedy for petitioners under Section, 17 of SARFAESI Act before jurisdictional Debts Recovery Tribunal. In view of the fact that possession is already taken and petitioners as tenants have right to appeal, this Court is not inclined to interfere in the matter. 6. Giving liberty to petitioners to prefer appeal within two weeks from today, the writ petition is dismissed.