1 APHC010082762026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3545] THURSDAY,THE THIRTIETH DAY OF APRIL TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE BATTU DEVANAND THE HONOURABLE SRI JUSTICE A. HARI HARANADHA SARMA WRIT PETITION NO: 4577/2026 Between: 1. PAPPULA MASENU VENKANNA, S/O. P.SATYANARAYANA, AGED 52 YEARS, R/O.D.NO.5-31, KOTIPALLE VILLAGE, PAMARRU MANDAL, DR. B.R. AMBEDKAR KONASEEMA DISTRICT, ANDHRA PRADESH 533 306 PAN NO.AMKPP5935G, MOBILE NO.99492 68999, E-MAIL ID PMVENKANNA@GMAIL.COM 2. SMT. PAPPULA GEETHA BHARATHI LAKSHMI,, W/O P.MASENUVENKANNA, AGED 51 YEARS, R/O KOTIPALLE VILLAGE, PAMARRU MANDAL, DR. B.R.AMBEDKARKONASEEMA DISTRICT, ANDHRA PRADESH 533 306 ...PETITIONER(S) AND 1. THE AUTHORIZED OFFICER, INDIAN BANK, KAKINADA BRANCH, MAIN ROAD, NEAR MASEED CENTRE, KAKINADA, EAST GODAVARI DISTRICT, ANDHRA PRADESH. 533001 2. THE BRANCH MANAGER, INDIAN BANK, KAKINADA BRANCH, MAIN ROAD, NEAR MASEED CENTRE, KAKINADA, EAST GODAVARI DISTRICT, ANDHRA PRADESH. -533001 ...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 toPleased to issue a Writ or Order or Direction more particularly the one in the nature Writ of Mandamus by declaring the deeds, things and action of Respondent Nos.1 and 2 in issuance of notice of Sale dated 05-01-2026 to auction the Property belongs to the Petitioner Nos.1 and 2 bearing Municipal 2 No.8-2- 293/82/A/313/A situated in Sy.No. (old) 403/1, (New) 120 of Shaikpet Village and 102/1 of Hakeempet Village, within the limits of GHMC, Hyderabad, Telangana State, pending Stay Petition in I.A.No.556/2026 in S.A.No.745/2025 before the Debt Recovery Tribunal, Visakhapatnam, as illegal, irregular, unwarranted, unfair, unjustified and unconstitutional and consequently direct the Respondents for bear from taking any further action till the outcome of S.A.No.745/2025 under the circumstances of the case and pass IA NO: 1 OF 2026 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 pleased to grant stay of all further proceedings in pursuance of Sale Notice Dated 05-01-2026 proposed to conduct the Auction initiated by the Respondents against the Property belongs to the Petitioner Nos.1 and 2 bearing Municipal No.8-2- 293/82/A/313/A situated in Sy.No. (old) 403/1, (New) 120 of Shaikpet Village and 102/1 of Hakeempet Village, within the limits of GHMC, Hyderabad, Telangana State the i.e., S.A. Schedule Property including the steps for taking physical possession of the property issued by Respondents pending disposal of the main Writ Petition and to pass IA NO: 2 OF 2026 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 pleased to vacate the interim order dated 17.02.2026 in IA No 1 of 2025 in W.P. No. 4577 of 2026 and pass Counsel for the Petitioner(S): 1. MANIKANTA THOTA Counsel for the Respondent(S): 1. RAYAPROLU SRIKANTH The Court made the following: 3 THE HONOURABLE SRI JUSTICE BATTU DEVANAND & THE HONOURABLE SRI JUSTICE A. HARI HARANADHA SARMA W. P. No.4577 of 2026 O R D E R: (Per Hon’ble Sri Justice A. Hari Haranadha Sarma) Present Writ Petition is filed with a prayer to issue an appropriate Writ or Direction particularly in the nature of writ of Mandamus, declaring action of respondent Nos.1 and 2 in issuance of notice of Sale dated 05.01.2026 proposing to conduct auction of the property of the writ petitioners bearing Municipal No.8-2-293/82/A/313/A situated in Sy. No.(old) 403/1, (New) 120 of Shaikpet Village and 102/1 of Hakeempet Village, within the limits of GHMC Hyderabad Telangana State pending Stay Petition in I.A. No.556/2026 in S.A.No.745/2025 pending before the Debt Recovery Tribunal (DRT) Visakhapatnam, on 18.02.2026 as illegal and also direct the respondents not to take action till the outcome of the S.A.No.745 of 2025 pending before the DRT, Visakhapatnam. 2. The grievance of the petitioners in brief, is that the petitioners are the borrowers. Securitization proceedings are initiated for recovery of the dues in respect of the property said to have been mortgaged. Questioning certain irregularities in the process of taking possession etc., and issuance of possession notice, the proceedings in terms of the (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act) SARFAESI Act, 2002 are challenged filing S.A.No.745 of 2025 before the 4 DRT, Visakhapatnam, wherein the application in I.A.No.556 of 2026 is filed seeking grant of stay of further proceedings. Despite pendency of the stay application, the respondents proceeding with the sale pursuant to the Sale Notice dated 05.01.2026 is not permissible, is the core contention of the writ petitioners. 3. This Court vide orders dated 17.02.2026, considered the pendency of I.A.No.556 of 2026 questioning the auction proceedings etc., and non- consideration of the same by the DRT, and also posting of said application beyond the date of sale etc., and issued interim direction permitting auction to go on, however, not to confirm the sale. Said order granted on 17.02.2026 is being continued time to time. 4. Heard both sides. 5. A direction to dispose of the Stay application in I.A.No.556 of 2026 in time bound manner is agreeable to both sides, balancing the interest on both sides. 6. S.A.No.745 of 2025 was filed invoking Section 17 of the SARFAESI Act, 2002. Prayer in the said appeal is that there are irregularities in the proceedings, hence, the possession notice dated 01.11.2025 and the action initiated pursuant to the said notice shall be considered as illegal and void, thereby sought to set aside the demand notice dated 30.04.2024. The relief prayed for in I.A.No.556 of 2018 is to stay of the further proceedings pursuant to the e-auction sale notice dated 05.01.2026. 5 7. It is evident from the record that a co-ordinate Bench of this Court, in this case allowed the auction to go on as scheduled, however with a direction not to confirm the sale. If stay of confirmation of the sale is continued, the auction purchaser’s interest will be prejudiced. If sale is confirmed and Sale Certificate is registered, the purpose of filing of S.A. will be defeated. Therefore, to balance the interest of both sides, in the facts and circumstances of case, this Court finds it proper to direct the Tribunal to dispose of the S.A. as early as possible, preferably within a period of (3) month from the date of receipt of a copy of this order. However, there shall not be confirmation of sale and registration of Sale Certificate till the disposal of S.A., but, subject to the condition that the appellant depositing 30% of the amount due as on 04.01.2026, which is mentioned as Rs.3,39,49,057/- vide notice dated 05.01.2026 within a period of (4) weeks. The amount deposited by the writ petitioners and the amount deposited by the auction purchaser shall be kept in Fixed Deposits and their entitlement for the same including the interest will be subject to result of the S.A. 8. With the above directions, the Writ Petition is disposed of. No costs. As a sequel, miscellaneous petitions pending, if any, shall stand closed. __________________________ JUSTICE BATTU DEVANAND __________________________________ JUSTICE A.HARI HARANADHA SARMA Date: 30.04.2026 Pnr 6 48 THE HON’BLE SRI JUSTICE BATTU DEVANAND and THE HONOURABLE SRI JUSTICE A. HARI HARANADHA SARMA W.P. No.4577 of 2026 Dt.30.04.2026 Pnr