w w w . L a w y e r S e r v i c e s . i n



Bontha Mohan Rao and Others. V/S Indian Overseas Bank and Others.


Company & Directors' Information:- R P G OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1989PTC035238

Company & Directors' Information:- M K OVERSEAS PRIVATE LIMITED [Active] CIN = U25209DL1987PTC029976

Company & Directors' Information:- P K OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1994PTC059051

Company & Directors' Information:- U & M OVERSEAS PRIVATE LIMITED [Active] CIN = U25200DL2007PTC165258

Company & Directors' Information:- B R K OVERSEAS PRIVATE LIMITED [Active] CIN = U51311DL2002PTC117390

Company & Directors' Information:- A V I OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1994PTC059014

Company & Directors' Information:- INDIAN OVERSEAS CORPORATION PRIVATE LIMITED [Active] CIN = U51900DL2010PTC203948

Company & Directors' Information:- J C OVERSEAS LIMITED [Active] CIN = U65993WB1999PLC090116

Company & Directors' Information:- J S OVERSEAS PVT LTD [Active] CIN = U74899DL1994PTC058039

Company & Directors' Information:- H A OVERSEAS PRIVATE LIMITED [Active] CIN = U55101CH1999PTC032886

Company & Directors' Information:- B. R. OVERSEAS LIMITED [Active] CIN = U24111MP1973PLC001244

Company & Directors' Information:- A T OVERSEAS LTD [Active] CIN = U17115PB1995PLC015815

Company & Directors' Information:- A L OVERSEAS PRIVATE LIMITED [Active] CIN = U15300DL2013PTC250975

Company & Directors' Information:- D R OVERSEAS PRIVATE LIMITED [Active] CIN = U15122DL2013PTC253214

Company & Directors' Information:- M R OVERSEAS PRIVATE LIMITED [Active] CIN = U01111DL1998PTC092787

Company & Directors' Information:- B C C OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1994PTC058775

Company & Directors' Information:- R B OVERSEAS PVT LTD [Active] CIN = U24200MH1982PTC028320

Company & Directors' Information:- S L OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1999PTC099800

Company & Directors' Information:- B L OVERSEAS PRIVATE LIMITED [Active] CIN = U51109DL2008PTC177039

Company & Directors' Information:- G D R OVERSEAS LIMITED [Strike Off] CIN = U51909TN1994PLC028831

Company & Directors' Information:- S. B. OVERSEAS PVT LTD [Active] CIN = U27101WB1994PTC065565

Company & Directors' Information:- G B OVERSEAS PRIVATE LIMITED [Active] CIN = U51109WB2007PTC116567

Company & Directors' Information:- G B OVERSEAS PRIVATE LIMITED [Active] CIN = U74110DL2007PTC317094

Company & Directors' Information:- AT OVERSEAS INDIA PRIVATE LIMITED [Active] CIN = U74900DL2015PTC276303

Company & Directors' Information:- M D OVERSEAS LIMITED [Active] CIN = U52110DL1980PLC011099

Company & Directors' Information:- R C OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1991PTC045610

Company & Directors' Information:- MOHAN OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1981PTC012014

Company & Directors' Information:- S. R. O. OVERSEAS PRIVATE LIMITED [Active] CIN = U51101DL2014PTC268846

Company & Directors' Information:- K P OVERSEAS LIMITED [Active] CIN = U51311DL2004PLC125574

Company & Directors' Information:- M I OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74899DL1987PTC026966

Company & Directors' Information:- R F OVERSEAS PRIVATE LIMITED [Active] CIN = U51909PB1997PTC019643

Company & Directors' Information:- M R K OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1984PTC018631

Company & Directors' Information:- L & W OVERSEAS PRIVATE LIMITED [Active] CIN = U17221PB2013PTC037343

Company & Directors' Information:- C D OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909DL1997PTC085553

Company & Directors' Information:- J D OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1990PTC038866

Company & Directors' Information:- A A P OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909KA2007PTC042105

Company & Directors' Information:- K G OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74899DL1993PTC054832

Company & Directors' Information:- OVERSEAS CORPN. PVT LTD [Active] CIN = U67120WB1947PTC014910

Company & Directors' Information:- G R OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74899DL1992PTC050950

Company & Directors' Information:- MOHAN INDIA PRIVATE LIMITED [Active] CIN = U70101DL2010PTC207186

Company & Directors' Information:- A M D OVERSEAS PRIVATE LIMITED. [Active] CIN = U52110DL1980PTC010622

Company & Directors' Information:- M S D OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74899DL1995PTC069001

Company & Directors' Information:- R K G OVERSEAS PRIVATE LIMITED [Active] CIN = U51229DL1997PTC086734

Company & Directors' Information:- N D OVERSEAS PRIVATE LTD [Converted to LLP] CIN = U51900MH1994PTC076787

Company & Directors' Information:- N W OVERSEAS PRIVATE LIMITED [Active] CIN = U51507HR1999PTC034265

Company & Directors' Information:- MOHAN MOHAN & CO PRIVATE LIMITED [Active] CIN = U60200BR1951PTC000497

Company & Directors' Information:- R. G. OVERSEAS LIMITED [Strike Off] CIN = U27104TN1981PLC008963

Company & Directors' Information:- P M OVERSEAS PRIVATE LIMITED [Active] CIN = U51909DL1991PTC045126

Company & Directors' Information:- J M B OVERSEAS PRIVATE LIMITED [Active] CIN = U51909WB1997PTC085224

Company & Directors' Information:- S C J OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1993PTC052913

Company & Directors' Information:- M C S OVERSEAS PVT LTD. [Strike Off] CIN = U51909WB1994PTC063666

Company & Directors' Information:- B. J. OVERSEAS PVT. LTD. [Strike Off] CIN = U24134WB1994PTC063846

Company & Directors' Information:- A H OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51109UP1977PTC004421

Company & Directors' Information:- R M OVERSEAS LTD [Active] CIN = U51909PB1992PLC011971

Company & Directors' Information:- L O P OVERSEAS PRIVATE LIMITED [Active] CIN = U51109UP2001PTC026011

Company & Directors' Information:- R R OVERSEAS LTD [Active] CIN = U51909DL1993PLC054909

Company & Directors' Information:- U D OVERSEAS PRIVATE LIMITED. [Strike Off] CIN = U74999DL2000PTC105257

Company & Directors' Information:- S A OVERSEAS PRIVATE LIMITED [Active] CIN = U51909DL2001PTC112769

Company & Directors' Information:- A H R OVERSEAS PRIVATE LIMITED [Active] CIN = U51909DL2000PTC103069

Company & Directors' Information:- H S OVERSEAS PRIVATE LIMITED [Active] CIN = U51909DL2008PTC182147

Company & Directors' Information:- S G OVERSEAS PRIVATE LIMITED [Active] CIN = U18101DL2000PTC105649

Company & Directors' Information:- R AND R OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U18101DL1987PTC030154

Company & Directors' Information:- D & D OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51420OR2009PTC010779

Company & Directors' Information:- A TO Z OVERSEAS PRIVATE LIMITED [Active] CIN = U51909PB2007PTC031342

Company & Directors' Information:- Z AND Z OVERSEAS PRIVATE LIMITED [Active] CIN = U18101DL1996PTC082824

Company & Directors' Information:- J P OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1994PTC059744

Company & Directors' Information:- R Q OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909MH2012PTC230840

Company & Directors' Information:- J M OVERSEAS PRIVATE LIMITED [Active] CIN = U51909WB2008PTC128957

Company & Directors' Information:- D N OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U24119DL1999PTC102409

Company & Directors' Information:- A-3 OVERSEAS PRIVATE LIMITED [Active] CIN = U36900HR2016PTC063750

Company & Directors' Information:- D M OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74900DL1995PTC072532

Company & Directors' Information:- B R V K OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909DL1982PTC014130

Company & Directors' Information:- OVERSEAS (INDIA) LTD [Strike Off] CIN = U51909WB1945PLC012624

Company & Directors' Information:- B N OVERSEAS PVT LTD [Strike Off] CIN = U74899DL1991PTC042764

Company & Directors' Information:- S N R OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U00063KA1996PTC019873

Company & Directors' Information:- P B M OVERSEAS PVT LTD [Strike Off] CIN = U51311RJ1996PTC011483

Company & Directors' Information:- M H OVERSEAS LIMITED [Strike Off] CIN = U36911UP2000PLC025118

Company & Directors' Information:- V. R. OVERSEAS PRIVATE LIMITED [Active] CIN = U51109WB2006PTC107676

Company & Directors' Information:- THE INDIAN CORPORATION PRIVATE LIMITED [Active] CIN = U65993TN1946PTC000988

Company & Directors' Information:- I E S (OVERSEAS) PVT LTD [Active] CIN = U31200WB1974PTC029343

Company & Directors' Information:- V B OVERSEAS PRIVATE LIMITED [Active] CIN = U28995DL1996PTC077049

Company & Directors' Information:- R AND R MOHAN INDIA PVT LTD [Active] CIN = U74899DL1961PTC003426

Company & Directors' Information:- J N OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1994PTC060359

Company & Directors' Information:- V C OVERSEAS PRIVATE LIMITED [Active] CIN = U51900DL2007PTC166741

Company & Directors' Information:- T M K OVERSEAS LIMITED [Strike Off] CIN = U51223KL1992PLC006416

Company & Directors' Information:- V E OVERSEAS PVT LTD [Strike Off] CIN = U31909DL1981PTC011849

Company & Directors' Information:- S R D OVERSEAS PRIVATE LIMITED [Active] CIN = U52209DL2008PTC178806

Company & Directors' Information:- C M D OVERSEAS PVT LTD [Active] CIN = U74899DL1995PTC073068

Company & Directors' Information:- M B OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74899DL1994PTC061016

Company & Directors' Information:- B G OVERSEAS PRIVATE LIMITED [Under Process of Striking Off] CIN = U74899DL1990PTC038859

Company & Directors' Information:- M N OVERSEAS PRIVATE LIMITED [Active] CIN = U51909WB2004PTC099257

Company & Directors' Information:- R L K OVERSEAS PRIVATE LIMITED [Converted to LLP] CIN = U74899DL1991PTC043115

Company & Directors' Information:- J S R OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U52399DL2009PTC190839

Company & Directors' Information:- K D OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U18101DL1982PTC013342

Company & Directors' Information:- S S B OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74120WB1997PTC086041

Company & Directors' Information:- C J OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74899DL1991PTC045545

Company & Directors' Information:- K MOHAN (INDIA ) PRIVATE LIMITED [Strike Off] CIN = U63090DL1987PTC027404

Company & Directors' Information:- A AND P OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74999DL1992PTC048780

Company & Directors' Information:- V & D OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909DL2009PTC186537

Company & Directors' Information:- P G OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74999DL1982PTC013479

Company & Directors' Information:- S N OVERSEAS PRIVATE LIMITED [Active] CIN = U74996DL2006PTC150004

Company & Directors' Information:- D. T. OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U36911UP1996PTC020289

Company & Directors' Information:- A R C OVERSEAS PRIVATE LIMITED [Active] CIN = U74899DL1989PTC036343

Company & Directors' Information:- T D OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U52590DL2013PTC257410

Company & Directors' Information:- V K OVERSEAS PVT LTD [Strike Off] CIN = U18209CH1990PTC010214

Company & Directors' Information:- J B OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U17220DL1983PTC016197

Company & Directors' Information:- K H OVERSEAS PVT LTD [Strike Off] CIN = U51496CH1989PTC009704

Company & Directors' Information:- A. A. OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909PB2008PTC032010

Company & Directors' Information:- Z H OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51909MH2005PTC155819

Company & Directors' Information:- E B OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51101DL2007PTC157263

Company & Directors' Information:- A P OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51101DL2014PTC271288

Company & Directors' Information:- S H OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U18101DL2002PTC116516

Company & Directors' Information:- S D S OVERSEAS PRIVATE LIMITED [Active] CIN = U51909DL2013PTC249539

Company & Directors' Information:- L T OVERSEAS PRIVATE LIMITED [Active] CIN = U15122DL2014PTC272665

Company & Directors' Information:- R P OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U74899DL2000PTC108954

Company & Directors' Information:- S V OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U52100DL2013PTC258278

Company & Directors' Information:- T & Y OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51505HR2012PTC047468

Company & Directors' Information:- G R D OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U80301HR2012PTC046968

Company & Directors' Information:- T & T OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51900GJ2015PTC083022

Company & Directors' Information:- S K P OVERSEAS PRIVATE LIMITED [Active] CIN = U51909GJ2013PTC076553

Company & Directors' Information:- P R OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U27310GJ2014PTC079227

Company & Directors' Information:- G T C OVERSEAS PVT LTD [Strike Off] CIN = U18101PB1993PTC013743

Company & Directors' Information:- D AND P OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U18109DL1989PTC038623

Company & Directors' Information:- B G S OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U51101PB2007PTC031400

Company & Directors' Information:- I P S OVERSEAS PRIVATE LIMITED [Strike Off] CIN = U63030DL1976PTC008356

Company & Directors' Information:- MOHAN BANK OF INDIA LIMITED [Not available for efiling] CIN = U99999MH1935PTC002284

Company & Directors' Information:- INDIA AND OVERSEAS CORPORATION LIMITED [Dissolved] CIN = U99999MH1947PTC005626

    S.A. No. 39 of 2019

    Decided On, 05 February 2020

    At, Debts Recovery Tribunal Hyderabad

    By, THE HONORABLE JUSTICE: R. MALLIKARJUNA
    By, (PRESIDING OFFICER)

    For Petitioner: Abhay Singh And For Respondents: Sirpa Ashok Kumar



Judgment Text


1. The Applicant filed the present Securitisation Application under Section 17 of The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002) challenging the proceedings initiated by the Respondent Bank in pursuance of E-Auction Notice dated 07.01.2019 fixing the date of auction on 15.02.2019 issued by the respondent bank against the Securitisation Application scheduled property.

2. The case of the applicants in brief, is that, the respondent no. 3 is a private limited company promoted by Mr. P. Sunil and Smt. P. Kavitha and the applicants have offered their properties as collateral security for the loan facility of the respondent bank. The applicant no. 1 is the owner and possessor of the Application "A" Schedule Property, the applicant no. 2 is the owner and possessor of the Application "B" Schedule Property, the applicant no. 3 is the owner and possessor of the Application "C" Schedule Property and the applicant no. 4 is the legal heir of the Application "D" Schedule Property inherited from her husband Late Jalagam Jagdeeshwar Rao who died on 30.03.2018. The respondent bank has sanctioned Term Loan of Rs. 15.00 crores for setting up a Diary Unit with 1200 cows to respondent no. 3 company. The applicants submit that there were internal disputes between the shareholders and the Directors of the respondent no. 3 company and there was a change in the management of the respondent no. 3 company and Mr. V. Srinivas and Mr. V. Ramesh were inducted as Directors in management. The said change in management was not to the knowledge of the applicants and the respondent bank has accepted the change without intimating to the applicants. The applicants therefore submit that the said course of action is a variance in the terms and conditions and the applicants are discharged from the guarantee and the collateral security is not enforceable for realizations of the alleged outstanding in the loans defaulted by the respondent no. 3 company.

While things stood thus, the respondent bank has issued a demand notice dated 01.01.2018 under Section 13(2) of SARFAESI Act, 2002. The applicants have raised certain objections against the Demand Notice dated 01.01.2018 and the same was acknowledged by the respondent bank. The respondent bank has proceeded to issue a possession notice dated 14.03.2018 and had approached Hon'ble CJM, Karimnagar vide Crl.M.P. No. 64 of 2018 for taking physical possession of the application schedule properties. The respondent bank has issued a E-Auction Sale Notice dated 12.07.2018 fixing the date of auction as 24.04.2018. Against the said measures, the applicants had filed W.P. No. 28854 of 2018 before the Hon'ble High Court of Telangana and the said W.P. was disposed off vide orders dated 23.11.2018. In respect of the Application "D" Schedule property, the owner of the property Sri Jalagam Jagdeeshwar Rao died on 30.03.2018 i.e., after issuance of the demand notice. The respondent bank without issuing a fresh demand notice, issued the present Auction notice which is illegal. Thus, the respondent bank violated rule 8(1), (2), (5), (6) and (7) and rule 9(1) of the Security Enforcement Rules, 2002.

3. Per contra, It is submitted by the respondent bank that at the request of the defendant no. 3, the respondent bank has sanctioned Term Loan of Rs. 15.00 crores and the applicants and other directors offered their personal guarantees and properties as collateral security for the said loan availed by respondent no. 3 company. The respondent no. 3 company failed to repay the loan amount and the loan account was classified as NPA and the respondent bank was constrained to initiate recovery proceedings by issuing a demand notice on 01.01.2018 under sec. 13(2) of the SARFAESI Act, 2002 calling upon the borrowers/guarantors/mortgagors to repay the outstanding loan within the stipulated period of 60 days. The averment that applicants submitted objections to the said demand notice but the bank proceeded to issue Possession Notice dated 14.03.2018 are false and incorrect as no such objections were received by the bank. The respondent bank continued SARFAESI measures by approaching Hon'ble CJM, Karimnagar in Crl.M.P. No. 64 of 2018 for taking physical possession of schedule properties and also for sale of the secured assets and at this stage the applicants approached Hon'ble High Court in W.P. No. 28854 of 2018 which was disposed of vide orders dated 23.11.2018 giving liberty to the respondent bank to proceed by issuing fresh sale notice under rule 9(1) of SARFAESI Rules and accordingly, the respondent bank issued fresh sale notice dated 07.01.2019 slating the auction sale on 14.02.2019. Challenging the said sale notice, the applicants filed the present S.A. and in view of interim conditional order of stay, no auction sale was held. The respondent bank also filed OA 612/2018 and orders were issued on 21.10.2019 in favour of the respondent bank. To drag the proceedings further, the applicants have filed IA no. 352 of 2019 and the Hon'ble Tribunal was pleased to grant interim stay in IA. No. 352 of 2019 on the condition that applicants shall deposit a sum of Rs. 60.00 lakhs with the Hon'ble DRT and in compliance of the said orders, the applicants have deposited Rs. 60.00 lakhs with the Hon'ble DRT.

The respondent bank, therefore, prays that the Hon'ble Tribunal may be pleased to dismiss the S.A. as well as I.A. No. 352 of 2019 and order for releasing the amount deposited by applicants in pursuance of orders dated 13.02.2019 in I.A. No. 352 of 2019 so that the same would be credited to the loan account of the respondent no. 3

4. The points for consideration are as follows:

(i) Whether the E-Auction Sale Notice dated 07.01.2019 fixing the date of auction on 15.02.2019 under challenge are sustainable in law?

(ii) Whether the respondent bank has followed the procedure as contemplated under law?

(iii) Whether the applicant is entitled to the relief sought for in the present SARFAESI Application.

Heard both the parties and perused the material documents filed by them.

It is the contention of the applicant that they stood as guarantors to the credit facilities sanctioned to respondent no. 3. They have not been informed of the changes in Board of Directors of respondent no. 3. The objections raised against the demand notice dated 01.01.2018 were not answered by the respondent bank. The applicants further submit that the respondent bank violated rule 8(1), (2), (5), (6) and (7) and rule 9(1) of the Security Enforcement Rules, 2002. The applicant no. 4 being LR for the Application "D" Schedule Property, no fresh Demand Notice is issued.

Per Contra, the respondent bank filed its counter and filed set of documents denying each and every averment of the applicant herein. The respondent bank submitted that the alleged letter sent by the applicants raising certain objections to the notice dated 01.01.2018 sent under Section 13(2) of the Act was not received by the respondent bank. The respondent bank issued possession notice dated 12.03.2018 under Section 13(4) of the Act much before the death of Sri Jalagam Jagdeshwar Rao who died on 30.03.2018. Since no repayment is forthcoming the respondent bank proceeded further under SARFAESI Act, 2002. The grounds raised by the applicants are not tenable and the respondent bank has strictly complied with the procedure contemplated under the SARFAESI Act and rules made thereunder. Therefore the SA is liable to be dismissed.

Points (i) & (ii).

With regard to first contention of the applicants that they have not been informed of the changes in the Board of Directors, I am of the opinion that the applicants extended their guarantee/mortgage to the respondent no. 3 i.e., a private limited company, which is recognized as a separate legal entity. Hence, change of directors will not amount to discharge of the liability of the guarantors i.e., present applicants.

The respondent bank has filed documents i.e., postal receipts regarding service of possession notice dated 12.03.2018, photographs evidencing affixture of the possession notice, publication in "The Indian Express-English" and "Namaste Telangana-Telugu" both dated 17.03.2018. Thus the respondent bank has demonstrated that it had followed the procedures contemplated under the provisions of the SARFAESI Act and the rules made thereunder.

The applicants contend that the respondent bank failed to reply to the objections of the applicants, hence violated section 13(3A) of SARFAESI Act, 2002. Above contention is already dismissed by Hon'ble High Court of Telangana in Writ Petitions No. 27225 and 28854/18. Relevant extracts of the orders are reproduced below.

"For a Court to appreciate the above contention, the minimum requirement to be satisfied by the petitioners is (1) to plead the date of receipt of the demand notice under Section 13(2) and (2) to plead the date on which objections were raised to the demand notice. But the affidavit in support of the writ petition does not say the date on which the demand notice was received by the writ petitioners. It does not also say the date on which objections were filed to the demand notice. In the material papers filed along with the writ petition, neither a copy of the demand notice nor a copy of the objections nor even a copy of the possession notice under Section 13(4) are enclosed. In fact, the time given to the borrower under Section 13(2) to respond to the demand is only 60 days. Unless the date of receipt of the demand notice and the date of filing of objections is mentioned, it is not possible to test the correctness of the contention regarding non-consideration of objections in terms of Section 13(3A).

Though the petitioners in W.P. No. 28854 of 2018 have not stated the date of receipt of the demand notice, the petitioners in the other writ petition have stated that the demand notice was published on 10.01.2018. Therefore, the period of 60 days would have expired by 11.03.2018, the possession notice is dated 12.03.2018. Actually, the petitioners in W.P. No. 28854 of 2018 have made a very strange claim that the possession notice was dated 14.03.2018. Therefore, it is clear that the Bank issued the possession notice only after 60 days. The obligation to pass orders under Section 13(3A) would arise only if objections are filed within 60 days to the demand notice. In the absence of any specific pleading with respect to (1) the date of receipt of demand notice; and (2) the date of filing of objections, the defence taken in terms of Section 13(3A) is very shallow and cannot be entertained."

From the above it is made clear by the Hon'ble High Court of Telangana that there is no violation of Section 13(3A) of SARFAESI Act, 2002.

Since the mortgagor/guarantor to Application "D" Schedule Property died after service of possession notice dated 12.03.2018, I am of the opinion that the respondent bank is not liable to issue fresh Demand Notice and Possession Notice to respondent no. 4.

However, respondent bank already issued notice to respondent no. 4 as LR in the sale notice, there is no violation of SARFAESI provisions.

The respondent bank submitted proof of publication of E-auction sale notice dated 07.01.2019 in "Indian Express-English" and "Eenadu-Telugu" newspapers on 07.01.2019.

The respondent bank submits that the proposed auction on 15.02.2019 could not take place because of the stay orders granted by the Hon'ble Tribunal. Point No. iii

Since the respondent bank has followed the procedure as contemplated under the Act and the Rules made thereunder, this SARFAESI Application is devoid of any merits and the applicant failed to establish any infirmity in the procedure adopted by the respondent

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bank as secured creditor and hence this SA is liable to be dismissed. 5. In view of the above discussion and facts and circumstances of the case, I find that the Applicants have failed to make out valid grounds for quashing the measures initiated under SARFAESI Act and rules made thereof by the Respondent Bank against the SA Schedule Property as such SA is liable to be dismissed. The respondent bank submits that the proposed auction on 15.02.2019 was not conducted in view of the interim stay orders given by the Hon'ble DRT in IA No. 352 of 2019. Since no cause of action survives, the SA is liable to be dismissed as infructuous. 6. The respondent bank filed Memo dated 16.01.2020 for release of Rs. 60.00 lakhs deposited with the Tribunal as conditional amounts in I.A. No. 352/19. Registry is directed to refund Rs. 60.00 lakhs along with interest to the respondent bank. 7. In the result, SA is dismissed as infructuous. However, the respondent bank is at liberty to proceed further with SARFAESI measures duly following the rules and guidelines framed in the Act. 8. Communicate a copy of this order to the parties concerned. (Dictated to P.A., transcribed by him, corrected, signed and pronounced by me in the open Court on this the 5th day of February, 2020)
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