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2025 DAILYLAW 42894 (AP)

SCHOLASTIC ACADEMY OF MANAGEMENT OF EDUCATION v. CANARA BANK @ SYNDICATE BANK

WP/36256/2025 · 2025-12-25

Cheekati Manavendranath Roy, Venuthurumalli Gopala Krishna Rao

body2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

APHC010707502025 IN THE HIGH COURT OF ANDHRA PRADESH FRIDAY, THE TWENTY SIXTH DAY OF DECEMBER TWO THOUSAND AND TWENTY FIVE THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY THE HONOURABLE SRI JUSTICE VENUTHURUMALLI GOPALA WRIT PETITION NO: 36256/2025 Between: 1. SCHOLASTIC ACADEMY OF MANAGEMENT OF EDUCATION, REP. BY ITS PROP. LAKKENABOINA MOHAN KUMAR, S/O. AHARONE O/O. D. NO. 20-6/77, CHENNUPATI COMPLEX, ANJAYYA R ONGOLE, PRAKASAM, ANDHRA PRADESH R/O. FLAT NO. 201, 2ND FLOOR, GAYATRI SADAN APARTMENT, RAJIV NAGAR, VIP ROAD, ONGOLE, PRAKASAM DISTRICT, ANDHRA PRADESH 2. LAKKENABOINA VIJAYA,, W/O. LATE MAHESH BABU LAKKENABOINA, S/O. AHARONE, D. NO.4 50, BC STREET, RACHAVARIPALEM, NUGULUPPALAPADU, PRAKASAM DISTRICT, ANDHRA PRADESH 3. SUVARTAMMA LAKKENABOINA,, S/O. AHARONE, D. NO.4 50, BC COLONY, MAIN STREET, RACHAVARIPALEM, NUGULUPPALAPADU, PRAKASAM DISTRICT, ANDHRA PRADESH 1. CANARA BANK SYNDICATE BANK, VCANARA BANK @ SYNDICATE BANK, REP BY IT'S AUTHORISED OFFICER, ONGOLE, KURNOOL ROAD BRANCH (13709) R/O. 1ST FLOOR, SRI VASU PLAZA, D. NO. 37 ONGOLE IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) THE TWENTY SIXTH DAY OF DECEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY HONOURABLE SRI JUSTICE VENUTHURUMALLI GOPALA KRISHNA RAO WRIT PETITION NO: 36256/2025 SCHOLASTIC ACADEMY OF MANAGEMENT OF EDUCATION, REP. BY ITS PROP. LAKKENABOINA MOHAN KUMAR, S/O. AHARONE 6/77, CHENNUPATI COMPLEX, ANJAYYA R ONGOLE, PRAKASAM, ANDHRA PRADESH R/O. FLAT NO. 201, 2ND FLOOR, GAYATRI SADAN APARTMENT, RAJIV NAGAR, VIP ROAD, ONGOLE, PRAKASAM DISTRICT, ANDHRA PRADESH LAKKENABOINA VIJAYA,, W/O. LATE MAHESH BABU LAKKENABOINA, S/O. AHARONE, D. NO.4 50, BC COLONY, MAIN STREET, RACHAVARIPALEM, NUGULUPPALAPADU, PRAKASAM DISTRICT, ANDHRA PRADESH SUVARTAMMA LAKKENABOINA,, S/O. AHARONE, D. NO.4 50, BC COLONY, MAIN STREET, RACHAVARIPALEM, NUGULUPPALAPADU, PRAKASAM DISTRICT, ANDHRA PRADESH ...PETITIONER AND CANARA BANK SYNDICATE BANK, VCANARA BANK @ SYNDICATE BANK, REP BY IT'S AUTHORISED OFFICER, ONGOLE, KURNOOL ROAD BRANCH (13709) R/O. 1ST FLOOR, SRI VASU PLAZA, D. NO. 37-1-407/12 BHAGYA NAGAR 2ND LANE, IN THE HIGH COURT OF ANDHRA PRADESH [3418] THE TWENTY SIXTH DAY OF DECEMBER THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY HONOURABLE SRI JUSTICE VENUTHURUMALLI GOPALA SCHOLASTIC ACADEMY OF MANAGEMENT OF EDUCATION, REP. BY ITS PROP. LAKKENABOINA MOHAN KUMAR, S/O. AHARONE 6/77, CHENNUPATI COMPLEX, ANJAYYA ROAD, ONGOLE, PRAKASAM, ANDHRA PRADESH R/O. FLAT NO. 201, 2ND FLOOR, GAYATRI SADAN APARTMENT, RAJIV NAGAR, VIP ROAD, ONGOLE, PRAKASAM DISTRICT, ANDHRA PRADESH LAKKENABOINA VIJAYA,, W/O. LATE MAHESH BABU COLONY, MAIN STREET, RACHAVARIPALEM, NUGULUPPALAPADU, PRAKASAM SUVARTAMMA LAKKENABOINA,, S/O. AHARONE, D. NO.4 50, BC COLONY, MAIN STREET, RACHAVARIPALEM, NUGULUPPALAPADU, PRAKASAM DISTRICT, ANDHRA PRADESH ...PETITIONER(S) CANARA BANK SYNDICATE BANK, VCANARA BANK @ SYNDICATE BANK, REP BY IT'S AUTHORISED OFFICER, ONGOLE, KURNOOL ROAD BRANCH (13709) R/O. 1ST FLOOR, SRI 407/12 BHAGYA NAGAR 2ND LANE, 2 CMR,J & VGKR,J W.P.No.36256 of 2025 2. CANARA BANK, REP. BY ITS AUTHORISED OFFICER, SPECIALIZED ASSET RECOVERY AND MANAGEMENT BRANCH (SPECIALIZED ARM BRANCH), KVC ARCADE,3RD FLOOR, 13-1 RC ROAD, VANI NAGAR, AVILALA, TIRUPATI 3. SRI P GOPAL RAO, ADVOCATE COMMISSIONER, ONGOLE, PRAKASAM DISTRICT 4. THE STATION HOUSE OFFICER, MADDIPADU POLICE STATION INCLUDING WOMEN POLICE PRAKASAM DISTRICT ...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 to issue a writ, order or direction more particularly one in the nature of Writ of Mandamus Writ of Mandamus to declare the oral notice dated 19-12- 2025 of the Advocate Commissioner in pursuant to the order dated 24-10- 2025 passed in CrI.M.P.No. 25 of 2023 on the file of the Hon'ble Chief Judicial Magistrate-cum-Principal Senior Civil Judge, Ongole and extended till 06-01-2025 against Schedule property to break open the lock of Schedule property with the assistance of the police Aid i.e, SHO., Maddipadu P.S including women Police, as without jurisdiction, illegal arbitrary and violative of Principles of natural justice and violative of Article 14, 21 and 300-A of the Constitution and to declare that the Respondent Bank in approaching the learned Chief Judicial Dagistrate Cum Principal Senior Civil Judge, Ongole under Section 14 of the SARFAESI Act,24-10-202 2002 vide CrI.M.P. No. 25 of 2023 against the schedule properties without serving the Demand Notice and Possession Notice on the petitioners and the same as illegal and not in accordance with law and to set aside all the measures allegedly initiated by the Respondent Bank under Section 13 (2) and 13 (4) of SARFAESI Act read with the Security Interest (Enforcement) Rules, 2002 including issuance of the Demand Notice against the schedule properties and consequently, set aside the orders passed order dated 24-10-2025 passed in CrI.M.P. No. 25 of 2023 on the file of the Hon'ble Chief Judicial Magistrate-cum-Principal Senior Civil Judge, Ongole and and extended till 06-01-2025 against Schedule property to break open the lock of Schedule property with the assistance of the police Aid i.e, SHO., Maddipadu P.S including women Police in the interest of justice and fairplay. 3 CMR,J & VGKR,J W.P.No.36256 of 2025 IA NO: 1 OF 2025 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 in pursuant to the order dated 24-10-2025 passed in CrI.M.P. No. 25 of 2023 on the file of the Hon’ble Chief Judicial Magistrate- cum-Principal Senior Civil Judge, Ongole & & extended till 06-01-2025 against Schedule property to break open the lock of Schedule property with the assistance of the police Aid i.e, SHO., Maddipadu P.S including women Police in view of the pendency of the SA (Dairy) No. 2471 of 20215 along with lA (D) No. 5010 of 2025 on the file of the Debt Recovery Tribunal, Visakhapatnam, pending disposal of the main Writ Petition, and to pass Counsel for the Petitioner(S): 1. KESAVI KUMARI NEMALA Counsel for the Respondent(S): 1. GP FOR HOME 2. 4 CMR,J & VGKR,J W.P.No.36256 of 2025 The Court made the following: ORDER: (Per Hon’ble Sri Justice Cheekati Manavendranath Roy) Heard learned counsel for the petitioners and learned Government Pleader appearing for the 4th respondent on receipt of advance notice from the petitioners. 2. The 1st petitioner is the principal borrower, who availed loan from the 1st respondent-bank. Petitioner Nos.2 and 3 are guarantors who offered their immovable property as security for the loan availed by the 1st petitioner. As the 1st petitioner committed default in repayment of the loan amount, the bank has initiated measures under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘SARFAESI Act’), for recovery of the loan amount. The petitioners have challenged the said measures initiated under Section 14 of the SARFAESI Act by the bank by way of filing the securitization application before the Debts Recovery Tribunal, which is the appropriate forum to adjudicate the lis. 3. However, it is the grievance of the petitioners that the said application is not numbered till now and their stay application is also not numbered and the presiding officer of the Debts Recovery Tribunal went on leave and all the staff also are on leave and in the said circumstances, they are constrained to approach this Court for protection, in view of the urgency. 4. It is brought to the notice of this Court today that the presiding officer resumed duty today. Therefore, in the said facts and circumstances of the case, we are of the considered view that this writ petition can be disposed of with a direction to the Debts Recovery Tribunal to register the securitization application and also the stay application filed by the petitioners, if they are otherwise in order and then to hear the stay application and pass appropriate orders on it, according to law, by fixing the time limit to that effect. 5 CMR,J & VGKR,J W.P.No.36256 of 2025 5. Therefore, this Writ Petition is disposed of with a direction to the Debts Recovery Tribunal, Visakhapatnam, to register the securitization application and stay application filed by the petitioners, if they are otherwise in order and hear the stay application and dispose of the same within 14 days from date of this order and pass appropriate orders on it, according to law. Till the said stay application is disposed of within the time stipulated above, there shall be stay of further proceedings, as per order dated 24.10.2025 passed in Crl.M.P.No.25 of 2023 on the file of the learned Chief Judicial Magistrate-cum- Principal Senior Civil Judge, Ongole. If the petitioners fail to cooperate with the Tribunal to dispose of the stay application within the period of 14 days, as directed supra, the interim order passed by this Court stands vacated, without any further reference to the Court. There shall be no order as to costs. As a sequel, Interlocutory Applications pending, if any, shall stand closed. ________________________________________ JUSTICE CHEEKATI MANAVENDRANATH ROY ______________________________________________ JUSTICE VENUTHURUMALLI GOPALA KRISHNA RAO Date: 26.12.2025 Note: Issue C.C. tomorrow B/o., MDP