Allowed

Ms Shilpa Agency v. Central Bank of India

DRT5 Jun 2026SA/647/2025

Case brief

AI extract

What is this about?

On April 5, 2026, the Debts Recovery Tribunal, Aurangabad, set aside an e-auction sale of mortgaged immovable property conducted on November 26, 2025. The court held that since the applicants redeemed the property post-auction by paying the full amount, the sale was liable to be quashed, and the bank directed to refund the bid money and release security documents.

What did the court decide?

The e-auction sale dated 26/11/2025 is set aside and quashed; the defendant bank is directed to refund 25% bid amount to the auction purchaser immediately and release security documents within 15 days

Ms Shilpa Agency versus Central Bank of India — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL, AURANGABAD (BEFORE HON’BLE PRESIDING OFFICER, DRT AT AURANGABAD) ORDER SHEET

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05.06.2026

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	Sr. No	.29	SA No. 647 /2025
Classific ation	No. of Exh.		ORDER BELOW IA Diary No. 1383/2026 (Delivered on 05^thJune, 2026)
		Ms S Cent Mr. M Mrs. & 2. None 1. 2.	hilpa Agency ..Applicant/s Versus ral Bank of India ..Defendant/s . M. Avhad - Advocate for the applicant. Rajashree Yewale- Advocate for the Defendant No.1 present for Defendant No.3 & 4. The applicants have filed I.A. Diary No.1383/2026 for setting aside e-auction sale conducted by Bank on 26/11/2025. The learned counsel of applicant argued that the applicants have repaid the entire dues alongwith expenses and interest component payable to the successful bidder and the defendant Bank has issued “No Dues Certificate” of closure of loan account and now defendant may be directed to release the security documents in favour of applicant in respect of immovable properties and e-auction sale dated 26/11/2025 may be declared ‘null and void’ and set aside.
		3.	The learned counsel for the defendant No.1 & 2 (Bank) submitted that the applicant have adjusted the entire loan amount and defendant Bank has issued “No Dues Certificate” to the applicants and now defendant bank has no objection in setting aside e-auction sale dated 26/11/2025 and ready to refund the amount to the auctionpurchaser.

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Page No.1

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(BM) (SA NO.647/2025)

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IN THE DEBTS RECOVERY TRIBUNAL, AURANGABAD (BEFORE HON’BLE PRESIDING OFFICER, DRT AT AURANGABAD) ORDER SHEET

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As per perusal of order dated 27/11/2025, the applicant had moved I.A. Diary No.2628/2025 for staying the sale fixed on 26/11/2025 and this Tribunal directed the Bank to accept 25% of the bid amount and not to confirm the sale without permission of this Tribunal.

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In view of this order, defendant bank only accepted 25% of the bid amount on receipt of bid on 26/11/2025 and immediately, thereafter the applicants have redeemed the mortgaged immovable property by paying foreclosure amount as disclosed by the Bank and “No Dues Certificate” has been issued by the Bank to the applicants. Therefore, in these circumstances the right of the applicants still survives to redeem the mortgaged immovable property and therefore, the e-auction sale dated 26/11/2025 is liable to set aside.

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In view of the above observations and submissions, I pass following order. ORDER

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A. The e-auction sale dated 26/11/2025 is hereby set aside and quashed as applicants have got redeemed the mortgaged immovable property by paying the entire outstanding amount to the Bank.

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B. The defendant bank is directed to refund 25% bid amount to the auction purchaser immediately.

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C. The defendant bank is also directed to release the security documents to the applicants in respect of

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Page No.2

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(BM) (SA NO.647/2025)

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IN THE DEBTS RECOVERY TRIBUNAL, AURANGABAD (BEFORE HON’BLE PRESIDING OFFICER, DRT AT AURANGABAD) ORDER SHEET

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this immovable property within 15 days. D. The I.A. Diary No.1383/2026 is disposed of accordingly E. The SA No.647/2025 is also disposed of. F. File be consigned to the record room.

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(Dr. J.R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad

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Page No.3

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(BM) (SA NO.647/2025)

Ms Shilpa Agency v. Central Bank of India

Case brief

What is this about?

What did the court decide?

Ms Shilpa Agency v. Central Bank of India

Case brief

What is this about?

What did the court decide?

What the court decided

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