WP/35940/2025 of Sri Lakshmi Ganapathi Mills, Vs Union of India, on 22 December 2025

1. SRI LAKSHMI GA APARTMENTS, 522009, REP.BY IT ABOUT

YE MANDALAM,RAJIV DISTRICT, ANDHRA

1. UNION OF INDIA, M (DEPARTMENT OF REPRESENTED BY BUILDING, SANSA

2. RESERVE BANK O DEPARTMENT OF OFFICE, 12TH FL MUMBAI, MAHARA

3. STATE BANK OF BUILDING, G BLOC

4. STATE BANK OF OFFICER/ BRAN VAISHNAVI COMP E HIGH COURT OF ANDHRA PRAD AT AMARAVATI (Special Original Jurisdiction) HE TWENTY THIRD DAY OF DECEM THOUSAND AND TWENTY FIVE PRESENT RI JUSTICE CHEEKATI MANAVEND BLE SRI JUSTICE TUHIN KUMAR G RIT PETITION NO: 35940/2025 ANAPATHI MILLS,, FLAT NO.103 REDDYPALEM, GUNTUR, ANDHR TS PROPRIETOR,N.SIRISHA, W/O. EARS, RIO. D.NO. 6-112-323, V GANDHI COLONY, GANAPAVARA A PRADESH-533005... AND MINISTRY OF FINANCE AND COMP F ECONOMIC AFFAIRS) (BANKIN Y ITS SECRETARY, 3RD FLOOR, J ADMARG, NEW DELHI-110001. OF INDIA, REPRESENTED BY ITS BANKING REGULATION, OFFICE OOR, SHAHID BHAGAT SINGH ASHTRA - 400001. F INDIASBI, CORPORATE CENTR CK, BANDRA KURLA COMPLEX, MU INDIASBI, REPRESENTED BY ITS NCH MANAGER, SARB VIJAYAW LEX UNIT 5 AND 6, 3RD FLOOR, DESH

MBER DRANATH ROY GEDELA , TEJASWANI RA PRADESH- JOSH, AGED NADENDLA AM, GUNTUR ...PETITIONER PANY AFFAIRS NG DIVISION), JEEVAN DEEP SECRETARY, AT CENTRAL MARG, FORT, RE, SYNERGY MBAI -400051. AUTHORISED WADA -64267, D.NO. 54-20-1

B/3F/U6, UPSTAIRS OF KFC,

SURYAPRAKASH SQUARE, GURUNANAK NAGAR ROAD, VIJAYAWADA, ANDHRA PRADESH - 520008. ...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 a Writ, Order or direction more particularly one in the nature of Writ of mandamus declaring the action of the respondent no.4 Bank herein in publication in the New Indian Express, dated 13.12.2025, without considering the representations, dated 19.11.2025 and 17.12.2025, made by the petitioner herein as illegal, arbitrary, highhanded and contrary to the procedure contemplated under SARFAESI Act, 2002, and consequently may be pleased to stay from all further proceedings of the re-auction of the property ID.No.SBIN7819899653, situated at Plot No. 182, D.No.818, Opp. MPP Office, Parthipadu, Parthipadu post, Guntur District to be conducted on 29.12.2025 by the respondent no.4 bank and pass IA NO: 1 OF 2025 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 stay from all further proceedings of the re-auction of the property ID.No.SBIN7819899653, situated at Plot No. 182, D.No.818, Opp. MPP Office, Parthipadu, Parthipadu post, Guntur District to be conducted on 29.12.2025 by the respondent no.4 bank and pass Counsel for the Petitioner:

1. POTHAMSETTY JAYA PRAKASH 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 petitioner, Mr. Hanumantha Rao Bachina, learned Standing Counsel for Central Government appearing for respondent No.1 and Mr. S.Satyanarayana Moorthy, learned Standing Counsel appearing for respondent Nos.3 and 4-State Bank of India.

2. On account of failure of the principal borrower to repay the loan amount, the Bank has initiated proceedings under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘SARFAESI Act’) and brought the secured asset for sale in public auction. The petitioner participated in the public auction and it became the successful bidder. As per the procedure, the petitioner has deposited 25% of the bid amount and the petitioner has to deposit the balance sale consideration within 15 days from date of knocking down the auction in its favour, subject to extending the period up to 90 days. The said period of 90 days also expired. The petitioner did not deposit the balance sale consideration. Therefore, the Bank has proceeded to go for re-auction of the secured asset. The petitioner has addressed a letter to the Bank, seeking two days time to deposit the balance sale consideration. But, on the ground that the Bank has no power to extend the period beyond the period of 90 days, the same is not considered. Therefore, the petitioner is before this Court by way of filing the writ petition.

3. Learned Standing Counsel for the respondent No.4-Bank, on instructions, submits that the re-auction is scheduled to be held on 29.12.2025 and if the petitioner is ready to pay the balance sale consideration before the said date and if the Court permits the petitioner to deposit the same and directs the Bank to receive the same that the Bank is prepared to receive the same and comply with the further procedure in favour of the petitioner.

4. The petitioner has agreed to deposit the balance sale consideration within the time stipulated by this Court.

5. Therefore, in view of the aforesaid submissions made by both the learned counsel for the petitioner and the learned Standing Counsel for respondent Nos.3 and 4-Bank, the Writ Petition is disposed of with a direction to the petitioner to deposit the balance sale consideration of Rs.29,40,600/- along with costs of the auction notice to a tune of Rs.1,50,000/-, in total Rs.30,90,600/- before the 4th respondent-State Bank of India, on or before 5:00 p.m. on 26.12.2025. Failing which, the 4th respondent-Bank is at liberty to proceed with the auction scheduled to be held on 29.12.2025. 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: 23.12.2025 MDP