nmIN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOURABLE SRI JUSTICE NAGESH BHEEMAPAKA WRIT PETITION No.37034 of 2025

22.01.2026 Between:

M/s. Rainbow Traders and Developers & 2 others …Petitioner AND The Reserve Bank of India, Represented by its Lead Bank Manager, RBI Hyderabad Regional Office,6-1-56, Secretariat Road, Saifabad, Hyderabad & 3 others …Respondents

ORDER:

This Writ Petition is filed under Article 226 of the Constitution of India challenging the action of the respondent Bank in classifying the petitioners’ loan account as Non- Performing Asset (NPA) and in initiating measures under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, “the SARFAESI Act”), including the issuance of notices under Sections 13(2), 13(4) and other consequential proceedings. The writ affidavit filed in support of the Writ Petition is enclosed.

2. Learned counsel for the petitioners made elaborate submissions assailing the classification of the account as NPA, the computation of alleged dues, the manner of service of statutory notices, and the alleged non-compliance with the provisions of the SARFAESI Act and the Rules framed thereunder. It is contended that the entire action of the respondent Bank is vitiated and warrants interference of this Court under Article 226 of the Constitution of India.

3. On the other hand, learned counsel appearing for the respondent No.1 raised a preliminary objection as to the maintainability of the writ petition, contending that the petitioners have an effective and efficacious alternative remedy under Section 17 of the SARFAESI Act before the Debts Recovery Tribunal. It is submitted that all the grievances raised by the petitioners pertain to measures taken under Section 13(4) of the Act, which can be appropriately adjudicated by the Tribunal, and therefore, the writ petition is liable to be dismissed at the threshold. The learned counsel relied upon the judgment of this Court, in Sai Hemaja Aerobricks Pvt. Ltd. v. State Bank of India and another, 2024 (2) ALD 257 (TS) (DB), wherein, this Court has categorically held

that when an efficacious alternative remedy under Section 17 of the SARFAESI Act is available, the writ petition challenging measures taken under the Act is not maintainable, and the aggrieved party must be relegated to the statutory forum. The present case stands squarely covered by the ratio laid down in the said judgment.

4. This Court has considered the rival submissions and perused the material placed on record.

5. The issues raised by the petitioners in the present writ petition, including the legality of NPA classification, computation of dues, service of notices, compliance with RBI guidelines, and alleged violations of the SARFAESI Act and Rules, are all matters which fall squarely within the jurisdiction of the Debts Recovery Tribunal under Section 17 of the Act. The Tribunal is empowered to examine both factual and legal aspects of such grievances and to grant appropriate relief.

6. In view of the aforesaid legal position, this Court is of the considered opinion that the writ petition is not maintainable in view of the availability of an effective alternative remedy under Section 17 of the SARFAESI Act.

7. Accordingly, the Writ Petition is dismissed, leaving it open to the petitioners to avail the alternative remedy under Section 17 of the SARFAESI Act, 2002, before the appropriate forum, in accordance with law. It is made clear that this Court has not expressed any opinion on the merits of the case, and all contentions of both parties are left open to be urged before the competent forum.

Pending miscellaneous applications, if any, shall stand closed.

____________________________ NAGESH BHEEMAPAKA, J Dated:22.01.2026 AQS IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOURABLE SRI JUSTICE NAGESH BHEEMAPAKA WRIT PETITION No.37034 of 2025

22.01.2026 AQS