WP/86/2026 of SUBHAN KRAFTS PAPER (P) LTD Vs THE AUTHORIZED OFFICER on 5 January 2026

1. SUBHAN KRAFTS DIRECTOR SMT. L.VENKATA SWAMY, 2, LAKSHMI NARAY DISTRICT - 522 006 A

2. SMT. LINGISETTY YEARS, RESIDENT NILAYAM, 2/1 VIK ANDHRA PRADESH.

3. SRI. LINGISETTY S YEARS, RESIDEN NILAYAM, 2/1 VIK ANDHRA PRADESH.

1. THE AUTHORIZED SYNDICATEBANK) S SITUATED AT D.NO PLOT NO.85, BESIDE

- 500 026, TELANGAN

2. THE BRANCH MANAG HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) Y, THE SIXTH DAY OF JANUARY THOUSAND AND TWENTY SIX PRESENT JUSTICE CHEEKATI MANAVENDRAN LE SRI JUSTICE TUHIN KUMAR GEDE RIT PETITION NO: 86/2026 PAPER (P) LTD, REP. BY ITS M LINGISETTY NAGA RAJESWARI , AGED 68 YEARS, RESIDENT OF FL YANA NILAYAM, 2/1 VIKAS NAGAR, ANDHRA PRADESH. 02. SUBBALAXMI,, W/O. L.SRINIVAS, A T OF FLAT NO. G-2, LAKSHMI NA KAS NAGAR, GUNTUR DISTRICT -

03. RINIVAS,, S/O. VENKATA SWAMY, T OF FLAT NO.G-2, LAKSHMI NA KAS NAGAR, GUNTUR DISTRICT - ...PETIT AND OFFICER, CANARA BANK (ER STRESSED ASSET MANAGEMENT . 10-3-163 AND 10-3-163/A, GROUND E RAIL NILAYAM, S.D.ROAD, SECUND NA STATE. GER, CANARA BANK (ERSTWHILE SY

NATH ROY ELA ANAGING , W/O. LAT NO.G- GUNTUR AGED 38 ARAYANA 522 006, AGED 48 ARAYANA 522 006, TIONER(S) RSTWHILE BRANCH, D FLOOR, DERABAD YNDICATE

BANK) MAIN BRANCH, GUNTUR - 522 003, ANDHRA PRADESH.

03.

3. SRI LYANAVOLU SIVA NAGESWARA RAO, S/O. NOT KNOWN TO THE APPLICANTS. MAJOR, RESIDENT OF SATULURU VILLAGE, SATULURU POST, NADENDIA MANDALAM, PALNADU DISTRICT - 522 549, ANDHRA PRADESH. 04.

4. SRI BAYYANA CHALAPATHI RAO, S/O. NOT KNOWN TO THE APPLICANTS. MAJOR, RESIDENT OF SATULURU VILLAGE, SATULURU POST, NADENDIA MANDALAM, PALNADU DISTRICT - 522 549. 05

5. THE PRESIDING OFFICER, DEBT RECOVERY TRIBUNAL, DOOR NO. 31-31-21, NARAYAN BHAVAN, SAI BABA STREET, DABA GARDENS, VISAKHAPATNAM - 530020.

...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate Writ, order or direction, more particularly one in the nature of Writ of Mandamus, declaring the action of the 1ST and 2 Respondents in issuing the impugned e-auction sale notice, dated 27-10- 2025, and all further consequential proceedings including the alleged e- auction said to have been conducted thereafter in respect of Item No.1 and Item No.2 of the mortgaged properties pertaining to the petitioners, as illegal, arbitrary, violative of Rule 8(5) 8(6) of the Security Interest (Enforcement) Rules, 2002, contrary to Section 13(8) of the SARFAESI Act, 2002, vitiated by non-issuance of statutory redemption notice, non furnishing of valuation reports, adoption of grossly undervalued reserve price and violation of principles of natural justice, and consequently set aside the e-auction sale notice, dated 27-10-2025 as well as the alleged auction proceedings pursuant thereto and further direct the 1st and 2nd Respondents to strictly follow the mandatory procedure under the SARFAESI Act and 2002 Rules before taking any coercive measures against the secured assets, and pass IA NO: 1 OF 2026 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the operation of the impugned e-auction sale notice, dated 27-10-

2025 issued by the 1st Respondent and all further consequential proceedings, including confirmation of sale, issuance of sale certificate, taking physical possession, removal of plant & machinery or any movable assets from the petitioners’ industrial premises, and restrain the 3rd and 4th Respondents/ alleged auction purchasers from interfering with or taking away any movable or immovable secured assets, pending disposal of the above Writ Petition and pass Counsel for the Petitioner(S):

1. KRISHNA KISHORE BHATRAJU Counsel for the Respondent(S):

1. The Court made the following: ORDER: (Per Hon’ble Sri Justice Cheekati Manavendranath Roy)

Heard learned counsel for the petitioners.

2. The petitioners are the principal borrowers, who availed loan from the respondent Nos.1 and 2-Bank. They offered the property in question as security for repayment of the loan availed by them. On the ground that the principal borrowers have committed default in repayment of the loan amount, the Bank has initiated measures under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘the Act’), for realization of the loan amount by bringing the secured asset for sale by way of issuing e-auction sale notice dated 27.10.2025.

3. Challenging the said measures initiated by the Bank, the petitioners have already approached the Debts Recovery Tribunal, Visakhapatnam, by way of filing securitization application No.415 of 2024, which is the appropriate forum to adjudicate the lis. Alongside the said securitization application, they have also filed I.A.No.4281 of 2025 seeking stay of further proceedings.

4. Therefore, as the petitioners have already invoked jurisdiction of the Tribunal, which is the appropriate forum, for redressal of the grievance and as the said securitization application along with the stay application is pending before Tribunal, we are not inclined to interfere in the matter and to entertain the writ petition, permitting the petitioners to maintain parallel proceedings before this Court and the Tribunal, which is not permissible under law.

5. However, it is the grievance of the petitioners that the stay application in I.A.No.4281 of 2025 is not being disposed of even though there is urgency to hear and consider the same.

6. Therefore, in the said facts and circumstances of the case, the Writ Petition is disposed of with a direction to the Debts Recovery Tribunal, Visakhapatnam, to consider and hear I.A.No.4281 of 2025, which stood posted to 08.01.2026 and dispose of the said stay petition expeditiously after hearing both the parties, on merits, according to law, within one week from date of producing the copy of this order before the Tribunal. There shall be no order as to costs. As a sequel, Interlocutory Applications pending, if any, shall stand closed.

________________________________________ JUSTICE CHEEKATI MANAVENDRANATH ROY

_____________________________ JUSTICE TUHIN KUMAR GEDELA

Date: 06.01.2026 Note: Issue C.C. by 07.01.2026

B/o. MDP