HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU Case No. WP(C) No. 2274/2025 Reserved on: 20.11.2025 Pronounced on:-09.12.2025 Uploaded on:-09.12.2025 Whether the operative part or full judgment is pronounced M/s Gogi Motor Store …..Petitioner(s)

Through: Mr. D.S Chouhan, Advocate Mr. Ashish Sharma, Advocate Vs Citizen’s Co-operative Bank Ltd. And anr .…. Respondent(s)

Through: Mr. R.K Jain, Sr. Advocate with Mr. Paramveer Singh, Advocate Mr. Ajay Bakshi, Advocate CORAM: HON’BLE MRS.JUSTICE SINDHU SHARMA, JUDGE HON’BLE MR. JUSTICE SHAHZAD AZEEM, JUDGE (JUDGMENT)

Shahzad Azeem-J

1. The petitioner has invoked the extraordinary writ jurisdiction of this Court, thereby seeking quashment of Tender- cum-Auction Notice dated 17.06.2025 issued by respondent Nos. 1 & 2 and further seeking quashment of any consequential action by the respondents including the proceedings initiated in terms of

1 15 Section 13 (4) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [the SARFAESI Act]. The petitioner also seeks a direction upon respondents No. 1 & 2 not to proceed against the secured assets in the shape of land falling under Khasra No. 786 min, 788 min, 790 min and 130 min respectively measuring 2400 sq. ft along with residential house, situated at South X Housing Colony, Channi Kamala, Dilli Extension, Trikuta Nagar, Jammu.

FACTS

2. The facts in brief, are that the petitioner has availed a Cash Credit Limit (CCL) to the tune of Rs. 49.00 lacs from the respondent-Bank which came to be sanctioned vide letter No. Adm/Loans/4207-08 dated 23.07.2019 and as a primary security, the petitioner has mortgaged his property, comprising of residential house constructed over plot No. 18, measuring 40 × 60 (2400 sq. ft) situated at South X Housing Colony, Channi Kamala, Deeli Extension Trikuta Nagar, Jammu falling under Khasra No. 786 min, 788 min, 790 min and 130 min, respectively. Although, for some time, the petitioner said to have maintained his loan account till September, 2022, however, thereafter, it had rendered irregular, finally resulted in classification of loan account as NPA on 03.05.2023.

3. However, thereafter, the petitioner when failed to maintain the account and same came to be classified as NPA, the proceedings under the provisions of SARFAESI Act initiated which, finally culminated in issuance of Tender-cum-Auction Notice dated 17.06.2025 which came to be published in the newspaper in terms of Rule 8 (6) of Security Interest (Enforcement) Rules, 2002 [Rules of 2002).

4. The respondent No. 3 came to be declared as successful bidder in the auction process and he said to have deposited by now the entire bid amount to the tune of Rs. 71,02,000/-, however, same could not be fructified but for the present petition. 5. It was in the above backdrop, Mr. Mayank Gupta, who was declared as successful bidder and said to have deposited the entire bid amount came to be impleaded as respondent No. 3, being aggrieved and necessary party, vide order dated

28.10.2025.

SUBMISSIONS

6. The case set up by the petitioner is that he had availed a Cash Credit Limit (CCL) of Rs. 49,00,000/- from the respondent–Bank. It is submitted that the petitioner has already paid approximately Rs. 2,00,00,000/- towards interest and principal of the loan amount and outstanding liability is only Rs. 19,80,300/-. However, respondent Nos. 1 & 2 issued a demand notice under Section 13(2) of the SARFAESI Act raising demand for an amount of Rs. 53,43,639/-, therefore, the petitioner said to have deposited approximately Rs. 34,00,000/-, thereby reducing the outstanding to Rs. 19,76,800/-.

7. The grievance of the petitioner is that despite substantial repayment of loan amount, the respondents have issued an auction notice dated 03.04.2025 proposing the auction of the residential house, measuring 40' × 60' (2400 sq. ft.), situate at South X Housing Colony, Channi Kamala, Dilli Extension, Trikuta Nagar, Jammu. It is further submitted that e