Telangana High Court
Lakshmi Venkateswara Frozen Foods vs Syndicate Bank on 17 September, 2018
THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN
AND
THE HON'BLE SMT JUSTICE KONGARA VIJAYA LAKSHMI
WRIT PETITION NO.32291 OF 2018
ORDER:{Per the Hon'ble Sri Justice Ramesh Ranganathan} Heard Sri V.Krishnamohan, learned counsel for the petitioners, Sri A.Krishnam Raju, learned Standing Counsel for the first respondent-Bank and Sri S.Maruthi Rao, learned counsel for the second respondent and, with their consent, the Writ Petition is disposed of at the stage of admission.
The second respondent runs a cold storage unit wherein the petitioners claim to have kept shrimp and other sea-foods for storage. On the loan facility, extended by the first respondent to the second respondent, becoming a non-performing asset, proceedings were initiated by the first respondent-Bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; and possession, of the cold storage unit of the second respondent, was taken by the first respondent pursuant to the possession notice dated 01.03.2018. The petitioners claim that shrimp and other sea-food, kept by them in the cold storage unit of the second respondent, belongs to them; and the first respondent cannot, therefore, retain these goods for the failure of the second respondent to repay the debt due to the first respondent.
Sri S.Maruthi Rao, learned counsel for the second respondent, would submit that the second respondent has no objection to the goods being handed over to the petitioner; and they are ready and willing to identify the shrimp and other sea-foods, kept by the petitioners in their cold storage unit, to enable the first respondent- Bank to hand it over to them.
2
Sri A.Krishnam Raju, learned Standing Counsel for the first respondent, on instructions, would submit that the process of identifying the shrimp and other sea-foods kept by the petitioners in the second respondent's unit has already commenced; and after its proper identification, in the presence of the borrower, the goods which belong to the petitioners would be handed over to them, provided they have not been furnished as security to the loan granted to the second respondent.
As the petitioners apprehend that the shrimp and other sea- foods kept in the cold storage unit may decay, if there is any delay in the process of identification, suffice it to direct the first respondent- Bank to forthwith take steps to identify the shrimp and other sea- foods belonging to the petitioners, in the presence of the borrower- second respondent; and, in case it does not form part of the security for the loan extended to the second respondent, to hand them over to the petitioners with utmost expedition and, in any event, not later than one (1) week from the date of receipt of a copy of this order.
The Writ Petition is, accordingly, disposed of. There shall be no order as to costs. Miscellaneous petitions, if any, pending shall stand closed.
_______________________________ (RAMESH RANGANATHAN, J) __________________________________ (KONGARA VIJAYA LAKSHMI, J) 17th September 2018 NOTE: Issue CC by tomorrow B/O RRB