Applicant challenged auction Sale Notice under SARFAESI Act for alleged procedural lapses. Debts Recovery Tribunal found auction not materialized due to stay, rendering SA infructuous, and dismissed application.
Application dismissed as infructuous; no adjudication on merits required since auction was not materialized.
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 RECOVERYTRIBUNAL- I AT HYDERABAD
DATEDTHISTHE 25TH DAYOFMAY, 2026
PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER
sA.No.1A5/2025
Mohammed Nizamuddin, S/o Mohd.Hafeexuddin, Aged 5I years, Occ:business, Rl o 1052778, Masab Tank, Banjara Hills, Road No. I Hyderabad-SOo O34. .. . Appiicant
Versus
Protium Finance Ltd. Rep. by its Authorized officer Begumpet branch, Hyderabad. .. . Respondent Counsel for the Applicants : Ms.D.Pooja Counsel for the Respondent : M/ s Dwara Pallaui Reseraed on :05.05.2026 Pronounced on : 25.05.2O26 Uploaded to the uebsite on : 26.05.2026
ORDER
problems, the Applicant could not make some payments. In the meanwhile, Respondent issued demand notice dt.O7.1 1.2024 and the said notice was not served on the Applicant. without serving possession notice, the Respondent is trying to take physical possession of the schedule property. Thereafter, the Respondent straightaway published the impugned Sale Notice dt.17.O3.2O25 without issuing any prior to sale notice as prescribed under the u/r 3(6) & 9(l) of Security Interest (Enforcement) Rules, 2002. The Respondent failed to obtain correct valuation of the schedule property as prescribed u/r 8(S) of Rules, 2002. The impugned sale notice was not served on the Applicant and the same was not published in two daily newspapers. Hence the SA.
.).
The Respondent hled their Reply denying all the adverse allegations made in the SA and contended that admittedly, the Applicant along with other co-borrowers availed loan of Rs.30 lakhs from the Respondent and they did not pay single pie since the avialment of loan and so the loan account became NPA on 3L.1O.2024 as per the guidelines of RBI. Thereafter, the Respondent issued Demand notice dt.07.1 1.2024 and the said notice has been duly sent to the Applicant and others through Regd.post and the said notice was published in two daily newspapers. When the Applicant failed to pay the outstanding dues as demanded, the Respondent issued possession notice dt.08.02.2025 by duly following Rule 8(1)(2) of Rules, 2OO2. Thereafter, the Respondent issued the impugned Sale Notice dt.17.O3.2O25 and the said notice was sent to the Applicant through Regd. Post and the same was affixed on the schedule property. The Respondent also published the said notice in two leading newspapers. Before issuing the sale notice, the Respondent obtained valuation report from the approved valuer .9.tr{..gccording1y, . ". .-_'1:,i- .:.-+r fixed reserve price of the schedule Tiiiis.ttte R t has duly followed the procedure and there Ld. counsel prayed to dismiss the SA.
2 5 [,tr Z0m
Point IVo.(i):-
25fitYIXI*
issue fresh sale notice for conducting auction of the schedule property by strictly following the procedure contemplated under the provisions of SARFAESI Act,2002 and Rules made thereunder.
Point No.(ii):-
(Dictated to the P.S, transcibed bg her, corrected, signed and pronounced bg me in the open court on this the 25th dag of Mag, 2026).
sd/(G. GOPr CHANDI PRESIDING OFFICER
TRUECOPY
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2 issues framed by the court
Whether the Applicant has established valid grounds for challenging the Sale Notice under the SARFAESI Act.
Whether the auction in pursuance of the Sale Notice has been materialized.
1 provisions across 1 enactments
Mohammed Nizamuddin
Protium Finance Ltd.
Gummadi Gopichand
As recorded by the court registry
2 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
