(G. Raghuram, J.)

The Debts Recovery Appellate Tribunal (Chennai Bench) [‘the DRAT’] by the order impugned dated 16.07.2008 allowed the appeal RA (SARFAESI)-49/2007, preferred by the 3rd respondent-Bank (a secured creditor) and set aside the order dated 31.07.2007 of the Debts Recovery Tribunal, Visakhapatnam (‘the DRT’).

The chronology of facts:

The petitioner is a private limited company incorporated under the provisions of the Companies Act 1956, engaged in the business of trading in rice. It has a factory at Gollapalli (v), Zedcherla (M), Mahabubnagar District. The petitioner availed credit facility from the secured creditor, initially in an amount of Rs. 2 crores which was thereafter enhanced to Rs.2.5 crores, for its business. The petitioner defaulted in payment of the outstanding dues/instalments. The secured creditor by a letter dated 20.12.2004 intimated the petitioner, inter alia that its total liability on the credit account is Rs.2,51,44,583/-; that as considerable time was already afforded the petitioner should pay Rs. 50 lakhs to enable regularization of the account, failing which the bank would initiate action for recovery of the dues. At the instance of t