IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
T.C.D.SEKHAR, A.HARI HARANADHA SARMA, JJ.
M/S Dwaraka Nursery, Represented By Its Proprietor Tadala Venkatesh, S/o Nageswara Rao – Appellant
Versus
Canara Bank, Represented By Its Authorized Officer – Respondent
Writ Petition No. 1407 Of 2026
Decided On : 16-01-2026
| Table of Content |
|---|
| 1. request to question demand and possession notices. (Para 1 , 2) |
| 2. urgency of applications and protection of petitioners' interests. (Para 3 , 4) |
| 3. decision to protect petitioners from dispossession. (Para 5 , 6) |
ORDER :
T.C.D. Sekhar, J.
1. The petitioners filed SA No.666 of 2025 before the Debt Recovery Tribunal, Visakhapatnam questioning the Demand Notice dated 19.08.2025, Possession Notice dated 30.10.2025 and E-auction notice dated 05.01.2026.
2. It is further case of the petitioners that along with the said SA, they have also filed Interlocutory Application vide IA No.4241 of 2025 seeking to stay all further proceedings including the sale of subject property and also stay of taking physical possession of the property in dispute by the Advocate Commissioner pursuant to notice dated 08.01.2026. The said Interlocutory Application was heard by the Tribunal and the same was adjourned to 06.03.2026 at the instance of the counsel appearing for the respondent-bank.
3. It is further contended by the counsel for the petitioner that taking advantage of the same, the respondents are trying to take possession of the schedule property pursuant to notice dated 08.01.2026 issued by the Advocate Commissioner. In such circumstances the petitioners have filed Interlocutory Applications vide IA Nos.156 and 157 of 2026 seeking to stay of all further proceedings pursuant to E-auction dated 05.01.2026 and to advance the hearing of IA No.4241 of 2025 respectively. The said applications were posted to 28.01.2026 at the request of counsel appearing for respondent bank. Aggrieved by the same, the present writ petition is filed.
4. It is the specific case of the petitioner that pursuant to notice dated 08.01.2026, the Advocate Commissioner is trying to take possession of the schedule property on or before 19.01.2026. On perusal of the record, it is evident that initially I.A. No.4241 of 2025 was heard and posted to 06.03.2026. Thereafter, in view of the urgency in the matter the petitioners filed Interlocutory Applications vide I.A.No.156 and 157 and the same were adjourned to 28.01.2026 at the instance of counsel appearing for respondent-bank. The counsel for the petitioner would submit that, if the interest of the petitioner is not protected, the very purpose of filing of the Interlocutory Applications would be defeated. He would further rely on order dated 03.10.2025 in W.P.No.27155 of 2025 passed by this Court, whereunder the interest of the petitioner was protected in similar circumstances.
5. Having considered the submissions made by the counsel for the petitioner, this Court by following the order dated 03.10.2025 passed in WP No.27155 of 2025, the present writ petition is disposed of directing the respondents not to dispossess the petitioners from the subject property pursuant to notice dated 08.01.2026 issued by the Advocate Commissioner till appropriate orders are passed in IA Nos.156 & 157 of 2026 in SA No.666 of 2025, on the file of Debt Recovery Tribunal, Visakhapatnam.
6. Accordingly, the writ petition is disposed of. There shall be no order as to costs.
As a sequel, interlocutory applications, pending if any, shall stand closed.
The court held the necessity to protect petitioners' rights against dispossession pending resolutions of interlocutory applications, emphasizing adherence to due process and prior protective measures....
A party may be granted additional time to appeal if the certified copy of the order is received late, under the SARFAESI Act provisions.
The court emphasized that pending a stay petition, taking possession under SARFAESI procedures requires Tribunal consideration.
Interim protection under supervisory jurisdiction is granted to prevent dispossession due to ongoing statutory appeals.
Court directed the timely consideration of pending applications in light of no existing threat to petitioners’ rights.
The timing of filing an O.P prior to tribunal proceedings constitutes an abuse of legal process.
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