Dismissed

Kamma Upender v. State Bank of India

DRT21 Nov 2025SA/215/2024

Case brief

AI extract

What is this about?

This application challenged a sale notice issued under the SARFAESI Act for auctioning property. The Tribunal held that fresh statutory notices were validly issued to the defaulting borrower after previous proceedings were quashed. Since the auction could not be conducted due to interim orders, the application became infructuous and was dismissed.

What did the court decide?

The Sale Application was dismissed as infructuous because no auction was conducted due to interim orders, rendering the applicant's claim for a stay on the sale notice moot.

Kamma Upender versus State Bank of India — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERYTRIBUNAL_^{I AT HYDERABAD}

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DATED THIS THE 21ST^{DAYOF NOVEMBER'2025}

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PRESENT: SRI GUMMADI^{GOPICHAND, PRESIDING OFFICER}

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SA.No.215/2024

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Kamma Upender S/o Ramaiah Aged 47^{years, Occ:business,} R/o 3-110, JaYanagar^colonY, Road No.12, BallePallY^Post, Khammam

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. .. Applicant

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Versus

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State Bank^{of India} Rep. by its Authorized^officer RASMECCC^Branch D.No.15-8-210/^1, Srinagar colonY,^{WYra Road,} Khammam District-SO7^OO1.

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. .. Respondent

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Counsel for^{th.e APPlicant} Counselfor^ResPondent

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Reserued on Pronounced^on Uploaded on

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Si T.Sridhar^Reddg Sri Hai Prasad Podila 17.10.2025 21.11.2025 21.11.2025

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ORDER

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This Application^{is filed u/s.17 of the Securitization and Reconstructionof} Financial Assets^{and EnforcementofSecurity InterestAct' 2OO2} I Act,2OO2l challenging^{the Sale Notice dt'30'04'2024 issued by} rdentBankforconductingauctionoftheschedulepropertyon to declare^{the same as null and void'}

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:t' ,,^2, 7-

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e by the Applicant^{in briefare as follows:}

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Applicant availed loan of Rs. 10 lakhs^{from the Respondentbank for} development of business.^{The Respondent bank on earlier occasion, issued} demand notice dt.O7.^{1O.2O19, possessionnotice dt.10.12.2019and sale} notice dt.10.02.2023^{andalso conductedauction in respect of the schedule} property on 26.02.2020 and the said^{noticeswere challenged by the} Applicant by Iiling^{SA 40} l2O2O^{before this Hon'ble Tribunal'The said SA} was allowed by this Tribunal^{vide ordersdt.08.08.2023by setting aside} the possession notice^{and sale noticeand also confrrmationof sale. while} the matter stood thus,^{the RespondentBank issued Sale Notice} dt.3O.O4.2O24 for conducting^{auction of the schedulepropertyon} 20.06.2024. The^{bank failedto serve 30 days notice u/r 8(6) of Security} Interest (Enforcement)^{Rules, 2o02. The impugned e Auction sale notice} nor dt.gO.O4.2O24 was^{neitherpublishedin two leadingnewspapers} affixed on the^{schedule property and the same was not served on} the Applicant. Hence^{the SA.}

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3'TheRespondentbankfrledtheirReplydenyingalltheadverseallegations made in t].e SA^{and contendedthat the Applicant availed loan fromthe} Respondent by^{creatingmortgagein respectof the schedule property} towards security^{for the said loan. Admittedly, earlier demand notice and} its consequential^{proceedingsincluding thesa-lenotice dt. 10.02.2O2Owere} setasidebythisHon,bleTribunalvideordersdt.0s.0s.2023passedinSA 4ol2o2o,ThereafterfreshproceedingshavebeeninitiatedbytheBankby issuingdemandnoticedt'lT.lo.2o2gandthesaidnoticewassenttothe Applicant through^{Regd. Poston his two addressesand the Respondent} alsopublishedthesaidnoticeintwodailynewspapersandalsoaffixedthe said notice:a6f,he^{address of the Applicant.Thereafterthe bankissued} ,r.1 ,, , ;1.,\ l'posses.1ib,p'tqglb'..at.ra.ol.2o24^{and sent the same to the Applicant} ;/ 4)\ i -'i' ,^ lotice was^{publishedin Telugu} ,,1',+,,th.org4idegd.^{Post.The said possessionr} ',r: aod Enelish daily newspapers^{and copy of the same was also affixedon} .-e^{'^^it'i'+Ui} --^^..*., Thereafter the bank issued Auction^Notice auction of the^{schedulepropertyon}

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20.06.2024 but the said auction^{could not be materializedin view of the} interim orders^passed by^{this Tribunal.Accordingly, the Respondentbank} duly followed the^{procedurecontemplatedunder the provisionsof} SARFAESI Act, 2OO2 and^{Rules made thereunderin issuing all the} statutory notices^{to the Applicant and prayed to dismissthe SA'}

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Heard Ld. counsel^{for the Applicant and Ld. counsel for the Respondent.} Perused the material^{brought on record.}

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Now the^{points that arise for considerationare}

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ii.wletlertheApplicanthasestablisledangualidgroundsfor clnllenging tle^{impugned SaleNotice dL30'O4'2O24 issued bg tte} Respondent against^{ttte schedulepropertA?}

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iii. To uthat^relief?

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Point lVo.(if:-

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During^{the courseof arguments, l'd' Counselfor the Applicant and ld'} Counselfort]reRespondentreiteratedtheirrespectiveversionsaSstated supra.

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T.ThereisnodisputeregardingthefactthattheApplicantavailedloanfrom the Respondent^{by creating mortgageagainstthe schedule property and} thereafter committed^{default in repaying the loan dues' There is also no} disputeregardingthefactthattheearlierproceedingsinitiatedbythe bankincludingthesalenoticedl.lo.o2.2o2oandconfirmationofsale aside by this^{Tribunalvide order dt'08'08'2023passed in SA} the Bank initiated^{fresh proceedings under the}

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of SARFAESI^{Act,2OO2 for conductingauction of the schedule}

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The specific contention^{of the Applicant is that without issuing fresh} demand notice and^{possessionnotice to the Applicant,the Respondent} straightaway, issued^{the impugned Auction sale Notice dt.3o.o4.2o24for} conducting auction^{of the schedule propertyand so, the saidsale notice} is not legal and^{valid and liable to be set aside.}

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But the Respondent^{contendedthat they have issuedall the fresh notices} to the Applicant^{under the provisionsof SARFAESIAct,2OO2and Rules} made thereunder.

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TheRespondentBankinordertoprovethattheyhavefollowedthe procedurecontemplatedundertheprovisionsofsARFAEslAct'2OO2and Rules made^{thereunderin issuing all the relevant notices to the Applicant,} enclosed relevant^{material documentsalong with the Reply filed by them'} As per the said^{documents filed by the Respondent, it is clear that after} setting aside^{the earlier demand noticedt'O7' 10'2019'possession notice} dt.|o.|2'2o|gandsalenoticedt.lo.O2.2o23bythisTribunalvideorders passed in in SA^{4O|2O2O, the Respondent bankissued fresh demand} notice dt. 17. lo.2o23^{and sent the same to the Applicantthrough} Regd.Post as^{evidenced by the postal acknowledgements filedby the Bank'} The said notice^{was also published inTelugu and Englishdaily} newspapers^{as evidencedby the copiesof paper publication Iiled by the} Bank. Thus^{there is valid service of demand notice on the Applicant'} Thereafter, the^{Respondentbank issued possessionnoticel8'Ol '2024to} the Applicant^{and the said noticewas sent to the Applicantthrough} Regd.post and^{the salne was returned with endorsementtrnclaimed'as} by the postal^{returnedcovers filed by the Bank'The said notice} on the schedule^{property as depicted in the copies of} by the Respondent^{and the said notice was publishedin} and daily newspapers^{as evidenced by the copies of paper} Z lffii.;am" the Respondent'^{Thus the Respondenthas complied} with Rule .g(1X2) of Security^{Interest(Enforcement)Rules,2002'}

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Thereafter, tlre^{Respondent issuede Auction SaleNotice dt.3o.o4.2o24.} In fact, the Applicant^{frled copy of the said notice along with the SA filed} by him.

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However,^{during the courseof arguments,Ld. counsel for the Respondent} submitted that in^{pursuanceof the impugnedSaleNoticedt.30.04.2o24,} no auction was^{conducted by the Respondent againstthe schedule} property in view of the^{interim orders passed by this Tribunal' As no} auction was^{conducted inpursuance of the impugned SaleNotice} dt.3o.o4.2o24'thereliefclaimedbytheApplicantintheSAbecomes

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infructuous and^{nothingsurvives in the presentSA for adjudicationand} there is no need^{to decidethe validity or otherwiseof the impugnedsale} notice.Hence,IamoftheopinionthatthereliefclaimedbytheApplicant inthepresentSAbecomesinfructuousandtheSAisliabletobe dismissed.Suffice,ifadirectionisgiventotheRespondentbanktoissue fresh sale^{notice for conducting auction of the schedulepropertyby} strictly following^{the procedure contemplatedunder the provisionsof} SARFAESI Act,2OO2^{and Rules made thereunder'}

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Point ltlo.(ii)t

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12 In the result,^{SA 21512024 is dismissed as there are no merits'} Consequently,^{the InterlocutoryApplications, pendingif any' shall stand} disposed of.^{No orderas to costs'}

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a copy of this^{order to the parties concerned'}

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transcibed bg^{her, corrected, signed and pronounced bg me in the open} dag of Nouember,^2025).

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,&sry sd/ - (G. GOPI CHAND) PRESIDII{G^OFFICER

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tcove"*1

Kamma Upender v. State Bank of India

Case brief

What is this about?

What did the court decide?

Kamma Upender v. State Bank of India

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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