HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
HON'BLE Mr. JUSTICE AHSANUDDIN AMANULLAH
AND
HON'BLE Ms. JUSTICE B. S. BHANUMATHI
WRIT PETITION No.2153 OF 2022
1. Vegi Ramakrishna, S/o Bullebbai,
Aged 54 years, Occ: Agriculture,
R/o. D. No.8-21, Thummuvarri Street,
Kirlampudi, East Godavari District - 533 431
2. Vegi Rajeswari, W/o. Vegi Ramakrishna,
Aged 50 years, Occ: House wife,
R/o. D.no.8-21, Thummuvarri Street,
Kirlampudi, East Godavari District - 533 431.
... Petitioners
Versus
1. Government of India, represented by its
Secretary, Department of Finance, New Delhi
2. Reserve Bank of India, represented by
Deputy Governor, Hyderabad, Regional Office,
Saifabad, Hyderabad
3. Karvy Financial Services Limited,
762, Building No.7, 6th floor,
Solitire Park, Andheri (E),
Mumbai - 400093 represented by
its Authorized Officer
4. Phoenix, ARC Private Limited, 5th floor,
Dani Corporate Park, 158, C.S.T. Road,
Kalina, Santhacruse (E), Mumbai - 400098
represented by its Authorized Officer.
... Respondents
Counsel for the petitioners : Mr. E. Sambasiva Pratap, Advocate Counsel for respondents : Mr. Jupudi V. K. Yagna Dutt, Advocate, representing Mr. N. Harinath, Assistant Solicitor General 2 ORAL JUDGMENT Date: 31.01.2022 (Per Hon'ble Mr. Justice Ahsanuddin Amanullah) Heard Mr. E. Sambasiva Pratap, learned counsel for the petitioners and Mr. Jupudi V. K. Yagna Dutt, learned counsel, representing Mr. N. Harinath, learned Assistant Solicitor General, for the respondent no.1.
2. The petitioners have moved the Court for the following relief:
" ....to issue a Writ, Order or direction more particularly one in the nature of WRIT OF MANDAMUS declaring the action of the respondents more particularly 4th respondent in proceeding to take possession and sell 2nd petitioner's house property bearing D.No.8-21, R.S.No.191/2, Block No.7, Thummuvari street, Kirlampudi Village and Mandal, East Godavari District, pending E.P.No.182/2017 before Principal District Court, Rajahmundry and complaint case No.7784/2018 before Judicial Magistrate of First Class, Gurugaon, Haryana, filed by the 3rd respondent without considering the settlement under O.T.S. Scheme, is illegal, arbitrary, contrary to the directions of the 2nd respondent under O.T.S. scheme and violation of Article 14, 300-A of Constitution of India and pass such other order or orders....."
3. Respondents no.3 and 4 have taken action against the petitioners for recovery of loan taken by the petitioners which has become Non-Performing Asset under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 read with the Security Interest (Enforcement) 3 Rules, 2002 (hereinafter referred to as the 'SARFAESI Act and Rules').
4. Learned counsel for the petitioners submitted that pursuant to the notice, dated 26.03.2021 issued by the Authorized Officer of respondent no.4, on 02.04.2021, the petitioners conveyed their willingness to settle the matter under One Time Settlement scheme (hereinafter referred to as the 'OTS scheme').
5. At this juncture, when the Court called upon the learned counsel for the petitioners to disclose as to whether any formal application has been made by the petitioners for any settlement before the respondents no.3 or 4, learned counsel submitted that the petitioners have represented in terms of the aforesaid communication dated 02.04.2021.
6. The notice issued to the petitioners was on 26.03.2021 and thereafter the communication by the petitioners was also on 02.04.2021 that too to the Authorized Officer of respondent no.4, who is only an officer to implement the recovery action under the SARFAESI Act and Rules and is not competent to take a decision or consider proposal under the OTS scheme. Moreover, in the notice dated 26.03.2021 itself, it was disclosed as to which authority/person, the petitioners had to represent. The same admittedly has not been done. Thus, taking an overall view in the matter, the Court is not inclined to interfere.
7. Accordingly, the writ petition stands dismissed. However, it shall open to the petitioners to approach the competent authority/forum with any proposal they may have with regard to 4 settlement of the concerned loan which shall be considered on its own merits. No order as to costs.
8. Miscellaneous petitions, if any pending, also stand disposed of.
________________________________ (AHSANUDDIN AMANULLAH, J) ________________________ (B. S. BHANUMATHI, J) MP 5 103 HON'BLE Mr. JUSTICE AHSANUDDIN AMANULLAH AND HON'BLE Ms. JUSTICE B. S. BHANUMATHI WRIT PETITION No.2153 OF 2022 Date : 31-01-2022 MP