G.Varalaxmi Devi v. Punjab National Bank

HON'BLE SRI JUSTICE V.RAMASUBRAMANIAN AND HON'BLE Ms. JUSTICE J.UMA DEVI Writ Petition No.5987 of 2018 ORDER: (per V.Ramasubramanian, J.) A person who was inducted as a tenant after issue of a demand notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, has come up with the above writ petition challenging the threat of dispossession.

2. Heard Mr. M.V.Suresh, learned counsel for the petitioner and Mr.G.L.Narender, learned Counsel for the 1st respondent/ Bank.

3. There is no dispute about the fact that the petitioner was inducted as a tenant only after the issue of the notice under Section 13(2) of the Act. Therefore, the tenancy was in contravention of Section 13(13) of the Act.

4. Realising this difficulty, the learned counsel for the petitioner submitted that since the children of the petitioner are prosecuting their studies while staying in the house owned by the 2nd respondent, she may be granted a reasonable time to vacate the property. The request, in our considered view, can be accepted for reasons which are in the interest of the Bank itself.

5. The strict legal course of action open to us in cases of this nature is to dismiss the writ petition allowing the Bank to take possession. Once they do, they have to engage Security Guards round the clock incurring monthly expenditure of about Rs.30,000/ - on the property that they have taken possession.

VRS, J. & JUD, J.

Wp no.5987 of 2018

6. On the contrary, if the petitioner is granted some time to handover possession, at least the rental income may come to the kitty of the Bank. It is true that the meagre rental income will only be a trickle insofar as the Bank is concerned, since the liability is nearly Rs.10 Crores. But still the other alternative does not appear to be economically viable even for the Bank.

7. Therefore, we are of the considered view that the petitioner could be granted some time to vacate the property.

8. Therefore, the writ petition is disposed of to the following effect:

(i) The petitioner is granted time up to 30th June, 2018, to vacate and handover vacant possession of the residential building bearing House No.258, Sy.No.74/ 6, East Marredpally, Secunderabad, to the Authorised Officer of the Bank and not to the landlord, (ii) Until the date of vacation, the petitioner shall pay the monthly rent as fixed under the lease deed to the Bank.

9. The applications, if any, pending in this writ petition shall stand closed. No costs.

_____________________ V. RAMASUBRAMANIAN, J ____________ J.UMA DEVI, J April 17, 2018.

KTL

VRS, J. & JUD, J.

Wp no.5987 of 2018