Allowed

Mr.Salla Narender v. The Authorised Officer

Telangana HC4 Feb 2022WP/31755/2021

Case brief

AI extract

What is this about?

This writ petition concerns a refund of excess money held by a bank after auction sale under SARFAESI Act. The court rejected the bank's requirement for heir certificates, directing an immediate refund with interest upon production of Aadhar cards and affidavits.

What did the court decide?

Directed the respondent to refund the excess amount with applicable interest to the petitioners within 15 days of verifying their Aadhar cards and affidavits proving sole heirship.

Mr.Salla Narender Vs The Authorised Officer — Banking and Recovery | Telangana HC (2022)

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PRESENT

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THE HONOURABLE SRI JUSTIC E UJJAL BHUYAN THE HONOURABLE S AND MT JUSTTCE P.SREE SUDHA

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Between; RI TI ON NO 17 50 F 21

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...RESPONDENTS

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Petition under Nlicte 226 of the Constitution of India praying that in the circumstances stated in the affidavit fired therewith, the High court may be pieased to issue an order, writ or direction more partjcularly one in the nature of writ of mandamus decraring the act of the respondent rejecting craim of the petitioners vide its letter dt.16.1O.ZOZ1 as null and void.

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lA NO: 1 OF 202.t

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Petition under section 15'1 cpc praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be preased to direct the respondent to pay the seven shares out of the total lying with them out of the balance

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r counser^{for the petitioner(s):sRr RAVIN'TALAvE-l:ATAsuBBA RAo}

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counselfortheRespondents:PoDILAHARIPRASAD fn"^{Cou'tmuO" the following:ORDER}

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HONOURABLE^{SRI JUSTICEUJJALBHUYAN} AND

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HONOURABLE^{SMT JUSTICEP. SREE SUDHA}

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WRIT^PET ITION^{No.317 550t 2021}

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ORDERf^{(PerHon'bleSri Justice lJjjal Bhuyan)}

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Mr. Hari Prasad^{Podila, Iearned counselfor the respondent} submits that^{the auction sale of the secured assettook placeon} 26.11.2O1g and^{thereafter the loan account of the defaulterwas} closed on^{05.c,6.2c]20. As on05 06 2O20 anamountof} Rs.S1,23,521.00^{is refundableto the borrower being excess money} recovered^{in the auction sale'}

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On 30.12.2021,^{we had passed the following order:}

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'According^{to the petitioners, they are the legalhei's of late} Salla Sat;iah,^{who was the bofiowerof respondent'}

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For default in^{repayment of loan'respondenthadinitiated} ;;;";**; unaei irre^{Securitisation and Reconstruction} -of Fi""i"i"ii"".," Enforcement^{of Security InterestAct' 2002} ""d (for short 'the SARFAESI^ActJ

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Petitioners had^{llledS'A No 1314 of 2017 before theDebts} i.l"r".J,^{-ftibr""l-ll,} Hyderabad^{(tor short the -Trib-unal]} .nuin"t if,.^{actionlakenby the respondentunder the SARFAESI} oli i""irJi.* t=.run.'^{of thts;le noticeBy order dated} OS.O8.ZOfs,^{"S.e.uo.tSt+ of 2017 was dismissedPursuant} thereto, respondent^{auctionsold the securityasset'}

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Petitioners^{lvrote letter dated05 09 2021 to} the .."oonaantISonL^{lhat ilharl soldthesecured assetin public} ;";;;;;;'; ;;.unt^{or Rs'e2,2s,ooooo'which was.muchin} "-*"a "f^{the outstanding duesTherefore' respondentwas} ;;;;;"t; i; refund the^{Lalaoceamount' after adiustingthe} dues, equally^{amongthe petitioners'Respondent} ""'i"i""ai"g ;;;lt"; ,. t'he^{petltione's-on16 10 2021, callingupon themto} i"i"iJ I.e.r heir certificate^{and the proportionat which- the} 1.i"""" "ri"r., the aPProPriate^{forum.is to be distributed amongthe legal heirs from}

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Pima facie,^{rve find such standof the respondent tobe} unreasonable^{Petitioners themselves as legal heirs of deceased} Srtla Sattalah^{had filedS A No'1314ot 2Ol7' which was duly} contested by the^{respondent Respondent neverque.stioned} stalus of the Detilioners^{as legal helrso[ the deceased ln such} crrcumstancei,^{ptrttingllp an additional conditionto furnlsh lhe} at ..'n,cn^{-rnebalanceamountis to be allocated} ;;"p;;i.. ^-ong^{the petitioners lrom the appropriate forum does not} upp""? to be^{justified.Respondent rs holdrngon to money of} tie petitioneis^{sincethedate of sale of the securedasset} withiut any authority^{of law.The same may havetobe} returned with interest.

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On the next date, learned counsel for the respondent shall apprise the Court, the quantum which is required to be refunded to the petitioners,

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Petitioners shall also furnish their respective Aadhar cards or such other documents to show that they are the only legal heirs of late Salla Sattaiah. Petitioners shall also swear and Iile an affidavit stating that they are the only Iegal heirs oI the deceased".

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Learned counsel for the petitioners submits that petitioners have furnished their respective Aadhar Cards to show that they are the only legal heirs of Salla Sattaiah. Petitioners shall approach the respondent within fifteen days from today and subject to compliance of the conditions mentioned in the order dated 30.12.2021 as extracted above i.e., furnishing of Aadhar cards or related documents and sworn affidavit, respondent shall release the excess amount to the petitioners u,ith applicable interest upon due verification.

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