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High Court for State of TelanganaWP/25082/2017allowed no costs

M/S Sri Venkateswara Poultery Farm v. The State Bank Of India

2017-07-28Sanjay Kumar,Gudiseva Shyam Prasad1 pages

THE HON'BLE SRI JUSTI CE SANJAY KUMAR AND THE HON'BLE SRI JUSTI CE GUDI SEVA SHYAM PRASAD WRI T PETI TI ON No.25082 of 2017 ORDER: (per SK,J) This writ petition was filed assailing the possession notice dated 25.07.2017 issued by the State Bank of India under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, 'the SARFAESI Act'), read with Rule 8(1) of the Security Interest (Enforcement) Rules, 2002. In the affidavit filed in support of the writ petition, the petitioner concern stated that in response to the demand notice dated 23.05.2017 issued by the bank under Section 13(2) of the SARFAESI Act, it had submitted its representation dated 04.07.2017.

The specific complaint of the petitioner concern is that the bank failed to communicate its reply setting out the reasons for non-acceptance of the representation as mandated by Section 13(3A) of the SARFAESI Act. Sri Maruthi Jadhav, learned counsel representing Sri B.S.Prasad, learned panel counsel for the State Bank of India, upon instructions, would concede that the bank failed to communicate its response to the petitioner's representation and without doing so, proceeded to initiate measures under Section 13(4) of the SARFAESI Act by issuing a possession notice.

In the light of the clear violation of the statutory mandate, which is fairly conceded by the learned counsel for the bank, the writ petition is allowed setting aside the possession notice dated 25.07.2017. This order shall not preclude the bank from following the due procedure laid down in the SARFAESI Act and initiating fresh measures under Section 13(4) thereof, if warranted, in accordance with law. Pending miscellaneous petitions, if any, shall stand closed in the light of this final order. No order as to costs. ____________________ JUSTI CE SANJAY KUMAR _____________________________ JUSTI CE GUDI SEVA SHYAM PRASAD Date:28.07.2017 Note:Furnish C.C. in three days (B/o) GJ