APHC010061682026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3558]

(Special Original Jurisdiction)

MONDAY,THE NINTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA WRIT PETITION NO: 3541/2026 Between:

1. M /S. SUBRAMANYESWARA SWAMY RICE MILL, REP. BY ITS MG.

PARTNER VUDATHA VENU GOPAL, S/O. LATE VUDATHA PEDDANNA, AGED ABOUT 42 YEARS, R/O. FLAT NO. 104, SRI ANJANEYAM APARTMENT, STAMBALAGARUVU, NEAR RAMALAYAM, GUNTUR.

...PETITIONER AND

1. U NION OF INDIA, REP BY ITS SECRETARY, MINISTRY OF FINANCE, NEW DELHI.

2. K OTAK MAHINDRA BANK, REP. BY ITS AUTHORIZED OFFICER DR.NO.6-3- 1109/1, 2ND FLOOR, NAVABHARATH CHAMBERS, RAJ BHAVAN ROAD, SOMAJIGUDA, HYDERABAD - 500 082, TELANGANA, INDIA.

3. K OTAK MAHINDRA BANK, VIJAYAWADA BRANCH, REP.BY ITS BRANCH MANAGER, SITUATED AT DR.NO.29-4-19, KODANDARAMIREDDY STREET, REHAMAN PARK, OPP.WATER TANK. GOVERNOR PET, VIJAYAWADA - 520 002.

...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 of Mandamus declaring the Pre-Sale Notice dated 24.11.2025 and Auction Notice dated 06.01.2026 proposed e auction scheduled on 12-02-2026 in respect of the mortgaged properties belonging to petitioner firm issued by the respondents as illegal, arbitrary, and contrary to the SARFAESI Act, and consequently set aside the Pre-Sale Notice dated 24.11.2025 and Auction Notic4 dated 06.01.2026 proposed e auction scheduled on 12-02-2026, 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 stay all further proceedings pursuant to the said Pre-Sale Notice dated 24.11.2025 and Auction Notice dated 06.01.2026. , including the proposed e auction scheduled on 12- 02-2026 in respect of the mortgaged properties belonging to Subrahmanyeswara Swamy Rice Mill, Maruthi Nagar Road, Gujjanagundia, Guntur, and pass appropriate orders pending disposal of the above writ petition Counsel for the Petitioner:

1. KANADHI BHATLA SRINIVASA MURTHY Counsel for the Respondent(S):

1.

The Court made the following ORDER: (Per Sri Justice Cheekati Manavendranath Roy)

This writ petition for Mandamus is filed to declare the pre-sale notice dated 24.11.2025 and auction notice dated 06.01.2026 proposing to hold auction of secured asset dated 12.02.2026 as illegal and contrary to Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short “the SARFAESI Act”) and consequently prayed to set aside the said notices dated 24.11.2025 and 06.01.2026.

2. Heard Sri K.Srinivasa Murthy, learned counsel for the petitioner, Sri Mallampalli Srinivas, learned Central Government counsel appearing for the 1^st respondent and Sri P.Badrinath, learned counsel appearing for the respondents 2 and 3.

3. As the principal borrower, who is M/s.Subramanyeswara Swamy Rice Mill, represented by its Managing Partner, failed to pay the loan amount availed from the 2^nd respondent – Bank, the Bank has initiated measures under Section SARFAESI Act to sell the secured asset for realization of the loan amount. Earlier, notice as contemplated under Sections 13(2) and 13(4) of the SARFAESI Act were issued when the original Managing Partner by name Vudatha Peddanna, of the principal borrower M/s.Subramanyeswara Swamy Rice Mill was alive. The said notices under Sections 13(2) and 13(8) of the SARFAESI Act were also given to his guarantors, who are also the co-

borrowers of the loan. Thereafter, the said notice under Section 13(2) of the SARFAESI Act was issued to all of them on 12.04.2023, and notice under Section 13(4) of the SARFAESI Act was issued on 22.06.2023. Thereafter, the Managing Partner of the Principal borrower died on 20.04.2024. After his demise, the Bank proceeded to sell