This application challenged the sale certificate and auction conducted by Canara Bank under the SARFAESI Act. The Tribunal dismissed the application, holding that the bank followed statutory procedures and no fraud or collusion was proved by the applicants.
Application dismissed; interim stay vacated; interlocutory applications closed. No order as to costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
iN THE DEBTS RECOVERY TRIBUNAL_ II AT HYDERABAD
DATED THIS THE OTTH DAY OF OCTOBER, 2025
PRESENT: SH. RAMESHWAR KOTHE, B.com, L.LB. (Hons.), M.A. PRESIDING OFFICER
Securitization Application No.358 OF 2022
Both R/o D.No.15-53-82, Boleddula Street Near Ammavarisala Temple, Nandyal Nandyal District 518 501
.......Applicants.
Versus
Aged about 39 years, R/o H.No.5-1828 Sunkalamma Street, Nandyala Town & District, Andhra Pradesh
(R-2 impleaded as per order dt.09.07.2024 in IA 1246/2024)
....Respondents.
Counsel for the Applicants : M/s T. Sridhar Reddy
Counsel for 1't Respondent : Mr.N. Manohar Reddy
-:ORDER:-
PaBe 2 of 5
sA No.358/2022
"the Act") to declare theauction conducted by the respondenton 28.fl.2022pursuant to sale noticedated 26.70 '2022in respectof SA schedulepropertyand registering the sale certificate dated 04.fL.2023 videDoc. No.1225 t/2023 in favour of 2nd respondent,as illegal, arbitrary andin violationof provisions of the Act and consequently setaside the same.
Page 3 of5
sA No.358/2022
published and affixed on schedule property asper Rules. Notice dated 24.01.2022 u/s 13(8) read with Rule 8(6) forredemption ofproperty was served on applicants. The valuation report wasobtainedfrom panel valuer on 30.O7.2022. Auction was successfully conductedon 28.7r.2022 pursuant to sale notice dated26.10.2022, lhe Znd respondent herein stood as successful bidder atRs.16.71lakhsand a sale certificate was issued in his favour on 08.12.2022.TheSA is filed only to drag on the recoveryproceedingshence liable tobe dismissed.
i) Whether the applicant made out any valid ground to quash the measures initiated by the respondent against
Page 4 of5
SA No.3s8/2022
Point No.(i):
Page 5 of 5
sA No.358 IZOZZ
bonafide in the entire Process which goes to the root of the auction proceedings. Accordingly SA is liable to be dismissed.
Point No,(ii):
t2. Consequently, interim stay shallstand vacated and the Interlocutory Applicationspending, if any,shall stand closed.
t4. Communicate a copy of this order to theparties concerned and upload in the official website.
(Typed to my dictation by the PS, corrected, signed andpronounced byme in the opencourt on this the 0/ doy of october,2025).
t ----Y ,'Y,"*ra-<*lhI i,!,'(fi-"\Q'r-- (RAfdESHWAR KOTHE) PRESIDING OFFICER
2 issues framed by the court
Whether the applicants made out any valid ground to quash the measures initiated by the respondent against the secured asset property.
Whether the auction proceedings were flawed due to fraud, collusion, undervaluation, or underbidding.
P. Aruna Chary
Smt.P. Lalitha
Canara Bank
Mr. Manga li Chiranjeevi
Rameshwar Kothe
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
