A property purchased by a third party in a valid public auction under SARFAESI Act proceedings is protected from recovery actions of other mortgagees, provided the recovery is directed against the original borrowers' other assets.

BETWEEN:

1. G KUMAR

S/O D GOPAL

AGED ABOUT 52 YEARS

2. SMT. S LAKSHMI

W/O SRI G KUMAR

AGED ABOUT 48 YEARS,

R/AT NO. 302, 3RD FLOOR,

SRI KRUPA APARTMENTS,

NO. 25/5, 7TH MAIN, 11TH CROSS,

MALLESWARAM

BENGALURU - 560 003

…PETITIONERS

(BY SRI. ABHINAY Y.T., ADVOCATE)

AND:

1. IDBI BANK LTD

RETAIL RECOVERY,

IDBI HOUSE

NO.58, MISSION ROAD,

BENGALURU - 560 027

REPRESENTED BY ITS

MANAGING DIRECTOR

2. THE RECOVERY OFFICER - I

DEBTS RECOVERY TRIBUNAL

JEEVAN MANGALA BUILDING

2ND FLOOR, 4,

RESIDENCY ROAD

BENGALURU - 560 025

…RESPONDENTS

(BY SRI. DILIP M.R., ADVOCATE FOR C/R1;

NOTICE TO R2 IS DISPENSED WITH,

VIDE ORDER DATED 17.03.2026)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO HOLD THAT THE R-1 BANK CANNOT ENFORCE THE ORDER DTD.28.11.2006 PASSED IN O.A.NO.128/2005 PASSED BY THE DEBT RECOVERY TRIBUNAL BENGALURU ANEXURE-G AND THE RECOVERY TRIBUNAL BENGALURU (ANNEXURE-G) AND THE RECOVERY CERTIFICATE DTD.28.11.2006 ANENXURE-H AGAINST THE APARTMENT PURCHASED BY THE PETITIONER SITUATED IN THE 3RD FLOOR OF THE PROPERTY BEARING NO.25/5 7TH MAIN 11TH CROSS MALLESHWARAM BENGLAURU AND ETC.

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI

ORAL ORDER

The present writ petition is filed seeking the following prayer:

“a. Hold that the 1st respondent Bank cannot enforce the order dated 28 November 2006 passed in OA No. 128 of 2005 passed by the Debt Recovery Tribunal, Bengaluru [Annexure G] and the Recovery certificate dated 28 November 2006 [Annexure H] against the apartment purchased by the petitioner situated in the 3rd floor of the property bearing no 25/5, 7th Main, 11th Cross Malleswaram, Bengaluru; and

b. Consequentially quash the warrant of attachment of Immoveable property dated 14 December 2020 passed in DCP No. 4243 of 2006 (Annexure K) and Notice for Settling of Sale Proclamation dated 14 December 2020 passed in DCP 4243 of 2006 (Annexure L); and

c. Pass such other orders as this Hon'ble Court deems fit.”

2. It is the case of the petitioners that they have purchased Apartment bearing No.302, measuring 2,350 sq. ft., which was originally allotted to the share of Smt. B.Sharadamma and Sri. B.N.Satyan. However, one G.P. Prabhu is stated to have created forged sale deeds in respect of the said apartment, which had fallen to the share of the vendors of the petitioners and fraudulently mortgaged the same in favour of M/s.Sreenidhi Souharda Sahakari Bank to obtain a loan. It is further submitted that, when proceedings were initiated under the SARFAESI Act , the petitioners participated in the auction conducted by the Bank and purchased the property. Pursuant thereto, a sale deed came to be executed in favour of the petitioners on 30.08.2004. It is also submitted that the very same borrower had created multiple mortgages over the property in favour of Oriental Bank of Commerce, Andhra Bank and respondent No.1–IDBI Bank Limited. It is stated that Andhra Bank had filed O.A. No.133/2006, which came to be dismissed against the vendors of the petitioners are concerned. Oriental Bank of Commerce had filed O.A. No.214/2004 before the Tribunal, which came to be allowed. Aggrieved by the same, the petitioners had filed W.P. No.45797/2011. The Co ordinate Bench of this Court, by order dated 08.08.2016, disposed of the said writ petition. The relevant portion of the order reads as follows:

“7. At the outset, it is to be noticed that in a normal circumstance, when the recovery proceedings under the proceedings initiated by the DRT is an issue for consideration, an appropriate proceedings will have t