Allowed

Canara Bank v. Sri Sai Cotton Traders

DRAT14 May 2026REGULAR APPEAL/81/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the appeal filed by the bank against an order setting aside an auction sale. The court relied on the borrower's affidavit stating they accepted a One Time Settlement of Rs. 44 lakh and did not challenge the sale. Consequently, the impugned DRT order was set aside.

What did the court decide?

Impugned DRT order setting aside the auction sale dated 11.11.2020 is set aside. S.A. 343 of 2019 stands dismissed.

Canara Bank versus Sri Sai Cotton Traders — Banking and Recovery | DRAT (2026)

¶1

¶2

IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA

¶3

Appl. No. 81 of 2025 (Arising out of S.A. No 343 of 2019 – DRT-Visakhapatnam)

¶4

THE HON’BLE JUSTICE SHRI ANIL KUMAR SRIVASTAVA, CHAIRPERSON

¶5

14.05.2026

¶6

1, The A.O., Canara Bank Main Branch, Guntur. Canara Bank Arm Branch Vijayawada

¶7

The Branch Manager, Canara Bank Residing, Main Branch, Guntur.

¶8

... Appellant

¶9

--Vs--

¶10

Sri Sai Cotton Traders Having Office At HIG 126 AP Housing Board Colony, Nallapadu, Guntur 522005

¶11

Para Purchandra Rao Residing At Flat No 104, Mayuri Homes, Chandramouli Nagar, Guntur - 522007

¶12

Chadalavada Venu Babu, Residing At D No 8-19-7, 1st Lane, Mangala Das Nagar, Guntur – 522001.

¶13

... Respondents

¶14

For Appellant : Ms. Aparajita Rao , ld. adv. For Respondent : Mr. M. Narasinhma Rao, ld. Adv.

¶15

THE APPELLATE TRIBUNAL :

¶16

Heard learned counsel, Ms. Aparajita Rao, learned counsel for appellant as wellas learned counsel, Mr. M. Narasinhma Rao, for respondent no.1 borrower and perused the records.

¶17

Instant appeal is preferred against the order dated 10.10.2024 passed by the learned DRT in S.A. 343 of 2019 (M/s Sri Sai Cotton Traders Vs. The A.O., Canara Bank) whereby learned DRT set aside the auction sale dated 11.11.2020 along with sale deed. It is further directed to refund the sale proceeds to the auction purchaser within 9% interest within 15 days.

¶18

¶19

At the very outset, learned counsel for respondent no.1 borrower would submit that respondent no.1, Sri Sai Cotton Traders and its proprietor Nalliboyina Venkatapathy, has filed an affidavit in appeal on 14.05.2026 whereby it is stated that pending appeal respondent no.1 borrower has submitted One Time Settlement proposal to the bank which was accepted by the bank vide letter dated 23.03.2026 for an amount of Rs.44.00 lakh. Respondent no.1 borrower has not challenged the auction sale conducted by the bank. Accordingly, appeal filed by the bank may be allowed.

¶20

Learned counsel for bank on instruction submits that bank has already received the amount of Rs.44.00 lakh and appeal, as per statement made by the respondent no.1 borrower in the affidavit, may be allowed. It is further submitted that sale certificate has already been issued and sale deed has been executed and possession is delivered to the auction purchaser.

¶21

In view of the statement made by respondent no.1 borrower in affidavit dated 06.04.2026 filed on 14.05.2026 appeal is liable to be allowed.

¶22

O R D E R

¶23

Appeal is allowed. Impugned judgment and order dated 10.10.2024 passed by the learned DRT is set aside. Consequently, S.A. 343 of 2019 stands dismissed. Costs easy.

¶24

File be consigned to record room.

¶25

Copy of the Order be uploaded in the Tribunal’s website.

¶26

¶27

Order dictated, signed and pronounced by me in the open

¶28

Court on this the 14^th day of May, 2026.

¶29

(Anil Kumar Srivastava, J) Chairperson

¶30

Dated : 14.05.2026 /pkb

Canara Bank v. Sri Sai Cotton Traders

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri Sai Cotton Traders

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Case details

Similar cases

Mohamad Arman versus Icici Bank Limited

Priti Mitra versus Punjab National Bank

Denzong Trading Company Private Limited versus Bank of India

Pegasus Assets Reconstruction Private Limited versus Kalasimha Hospitals Private Limited

Au Small Finance Bank Limited versus Deepak Mehta Prop of Mehta Enterprise

Ravi Hi Tech Engineers and Contractors and Others versus Uco Bank