Andhra Pradesh High Court
WP/29774/2025 of SRI HANUMAN CONSTRUCTORS Vs UNION OF INDIA on 28 October 2025
HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [0] WEDNESDAY, THE TWENTY NINETH DAY OF OCTOBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 29774/2025 Between: 1. SRI
APHC010579932025
IN THE HIGH COURT OF ANDHRA PRADESH
AT AMARAVATI
(Special Original Jurisdiction)
[0]
WEDNESDAY,THE TWENTY NINETH DAY OF OCTOBER
TWO THOUSAND AND TWENTY FIVE
PRESENT
THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY
THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR
WRIT PETITION NO: 29774/2025
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1. SRI HANUMAN CONSTRUCTORS, REPRESENTED BY ITS MANAGING PARTNER, OFFICE AT D.NO. 68-10-34/5A, NANCY STREET, VIDYUT NAGAR, KAKINADA, KAKINADA DISTRICT (ERSTWHILE EAST GODAVARI DISTRICT).
...PETITIONER AND
1. UNION OF INDIA, REPRESENTED BY ITS SECRETARY, MINISTRY OF FINANCE, NEW DELHI.
2. THE CITY UNION BANK LIMITED, REPRESENTED BY ITS MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, HEAD OFFICE AT NARAYANA NO. 24B, GANDHI NAGAR, KUMBHAKONAM, TAMIL NADU STATE-612 001.
3. THE CREDIT RECOVERY AND MANAGEMENT DEPARTMENT, CITY UNION BANK LIMITED, ADMINISTRATIVE OFFICE NO.24B, GANDHI NAGAR, KUMBHAKONAM, TAMIL NADU STATE-612 001
4. THE BRANCH MANAGER, CITY UNION BANK LIMITED, KAKINADA BRANCH, OFFICE AT D.NO.27-9-52, PULAVARTHIVARI STREET, KAKINADA, KAKINADA DISTRICT, ERSTWHILE EAST GODAVARI DISTRICT-533001.
5. G S MANI BAPANNA DORA RAJANALA, S/O RAJANALA ERUKA NAIDU, AGED ABOUT 40 YEARS, OCC BUSINESS, R/O D.NO. 5-14, KOTHAPETA, GOLLAPROLU VILLAGE AND MANDAL, KAKINADA DISTRICT (ERSTWHILE EAST GODAVARI DISTRICT-533445)
...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 topleased to issue a Writ or order or direction more particularly one in the nature of WRIT OF MANDAMUS declaring the action of the Respondents herein particularly Respondent no.3 and 4 in selling the schedule property appended in vide proceedings insale notice issuedauctionretender-cum C.O/REC/NPA/2025-26, dated 20.09.2025 under The Securitisation And Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 without following the due procedure contemplated under the Act and not accepting the offer made by the Petitioner by way of a demand draft obtained vide 178015 for a sum of Rs.30,10,000/- on 28.10.2025 despite Respondent No.5 not depositing the remaining 75percentage of the Auction purchase amount as nothing but illegal, arbitrary, erroneous, highhanded and violative of the procedure contemplated under The Securitisation And Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002 and violative of Article 14, 21 and 300 A of The Constitution of India and consequently set aside the auction conducted by the Respondent no.3 and 4 in so far as the mortgaged property of the Petitioner appended in the Retender-cum-Auction sale notice under SARFAESI Act, 2002 issued vide C.O/REC/NPA/2025-26, dated 20.09.2025 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 pleased to grant stay of all further proceedings pursuant to the Retender- cum-Auction Sale Notification issued vide C.O/REC/NPA/2025-26 dated: 20.09.2025 with regard to the mortgaged property appended by the Respondent No. 3 and 4, pending disposal of the above Writ Petition and pass Counsel for the Petitioner:
1. A K KISHORE REDDY 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.
2. The petitioner is the principal debtor, who availed loan of Rs.30,00,000/- from City Union Bank Limited, Kakinada Branch. As he committed default in discharge of the said loan amount, the Bank has initiated proceedings under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short “the SARFAESI Act”) and brought the property for sale in the auction. In the auction that was held on 16.10.2025, the 5th respondent stood as highest bidder and the auction was knocked in his favour. He has deposited 25% of the bid amount. He has to still deposit the balance 75% of the amount before the Bank to complete the sale transaction. While so, the petitioner, who is the principal debtor states that he has approached the Bank to pay the outstanding amount of Rs.24,06,936/- along with accrued interest thereon. But the Bank has refused to accept the same. It is stated that he has also approached the Bank with demand draft for a sum of Rs.30,10,000/- and the Bank has refused to receive the same. Therefore, contending that he is entitled to repay the borrowed amount with interest thereon before the sale is completed and as the Bank is not accepting the same, he sought a direction by way of writ of mandamus to the Bank to accept the same.
3. In the said facts and circumstances of the case, the petitioner being the principal debtor, has got an efficacious remedy before the Debt Recovery Tribunal under the SARFAESI Act. But without approaching the appropriate forum, he has approached the High Court. Therefore, when he has got an efficacious remedy available under the Act, we are not inclined to interfere in this writ petition to grant the relief sought by the petitioner.
4. Therefore, the Writ Petition is disposed of, granting liberty to the petitioner to approach the Debt Recovery Tribunal, Visakhapatnam, for redressal of his grievance including to obtain stay of further proceedings relating to the said auction and sale. As it is stated that the auction purchaser may at any moment of time, pay the balance 75% of amount and the sale transaction may be completed, the 4th respondent-Bank is directed not to register any sale deed and complete any sale transaction in favour of auction purchaser for a period of one month i.e. till 29.11.2025, however it may accept the balance sum to be paid by the auction purchaser. The petitioner shall approach the Debt Recovery Tribunal before 29.11.2025 and initiate appropriate proceedings for redressal of his grievance, which shall be decided by the Debt Recovery Tribunal, according to law. The Debt Recovery Tribunal shall also consider the stay petition that may be filed by the petitioner and decide the same, according to law, expeditiously before 29.11.2025. There shall be no order as to costs. Miscellaneous petitions, if any pending, in the Writ Petition, shall stand closed.
//TRUE COPY//
CHEEKATI MANAVENDRANATH ROY,J
T.C.D.SEKHAR,J
To,
1. UNION OF INDIA, REPRESENTED BY ITS SECRETARY, MINISTRY OF FINANCE, NEW DELHI.
2. THE CITY UNION BANK LIMITED, REPRESENTED BY ITS MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, HEAD OFFICE AT NARAYANA NO. 24B, GANDHI NAGAR,
KUMBHAKONAM, TAMIL NADU STATE-612 001.
3. THE CREDIT RECOVERY AND MANAGEMENT DEPARTMENT, CITY UNION BANK LIMITED, ADMINISTRATIVE OFFICE NO.24B, GANDHI NAGAR, KUMBHAKONAM, TAMIL NADU STATE-612 001
4. THE BRANCH MANAGER, CITY UNION BANK LIMITED, KAKINADA BRANCH, OFFICE AT D.NO.27-9-52, PULAVARTHIVARI STREET, KAKINADA, KAKINADA DISTRICT, ERSTWHILE EAST GODAVARI DISTRICT-533001.
5. G S MANI BAPANNA DORA RAJANALA, S/O RAJANALA ERUKA NAIDU, AGED ABOUT 40 YEARS, OCC BUSINESS, R/O D.NO. 5-14, KOTHAPETA, GOLLAPROLU VILLAGE AND MANDAL, KAKINADA DISTRICT (ERSTWHILE EAST GODAVARI DISTRICT-533445)
6. Two CD Copies
HIGH COURT
DATED:29/10/2025
ORDER
WP 29774/2025