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24th April, 2024 THE APPELLATE TRIBUNAL :

Instant appeal has arisen against judgment and order dated 21.10.2018, passed by Learned DRT, Visakhapatnam allowing S.A. 211 of 2018 (Boddu Ganesh & Another -vs- Andhra Bank).

2. As per the pleadings of the parties, a Loan of Rs.8.00 lac was availed by one M/s Prabhu Charan Furniture Works during 2014-2017 wherein Respondent No. 1, Boddu Ganesh stood as Guarantor by creating equitable mortgage of his property. Default was committed by the Borroser. Accordingly, account was classified as N.P.A. on 26.11.2017. Notice under Section 13 (2) of the SARFAESI Act, 2002 was issued on 1.2.2017 for an amount of Rs.5,80,908.00; possession was obtained by the Bank and auction was conducted on 23.3.2018 wherein Respondent No. 2, Kothapalli Srinivasa Rao, became the successful bidder for Rs.19.40 lac; sale certificate was issued on 29.5.2018.

3. Feeling aggrieved, S.A. 211 of 2018 was filed by the Respondent No. 1, Boddu Ganesh before the Learned DRT which was allowed on 21.10.2019. Sale conducted on 28.3.2018 was set aside on the ground that mandatory provisions of Rules 8 (6) and 9 (1) of the Security Interest (Enforcement) Rules, 2002 (hereinaf