APHC010061982026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3558] WEDNESDAY, THE ELEVENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY AND THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA WRIT PETITION No.3958 of 2026 Between: 1. SRK EDUCATIONAL SOCIETY, REP. BY ITS SECRETARY AND CORRESPONDENCE, THEEGALA PAIDI PRAKASH, S/O. LATE T MADHUSUDHAN RAO, AGED ABOUT 37 YEARS, D.NO.24/184, CHAKIREVUPALEM, RAMANAIDUPET, MACHILIPATNAM, KRISHNA DISTRICT ...PETITIONER AND 1. THE UNION BANK OF INDIA, REP. BY ITS CHIEF MANAGER/AUTHORIZED OFFICER, ASSET RECOVERY BRANCH (79170), 4TH FLOOR, ANDHRA BANK BUILDING, RR APPARAO STREET, VIJAYAWADA, ANDHRA PRADESH- 520001. 2. THE UNION BANK OF INDIA (03461), REP. BY ITS BRANCH MANAGER, OPP. ROBERTSON POLICE STATION, ROBERTSONPETA, MACHILIPATNAM-421001, KRISHNA DISTRICT. ...RESPONDENT(S): Counsel for the Petitioner: 2 CMR,J & GTK,J W.P.No.3958 of 2026 1. SAI GANGADHAR CHAMARTY Counsel for the Respondent(S): 1. SMT. V. DYUMANI The Court made the following: 3 CMR,J & GTK,J W.P.No.3958 of 2026 THE HON’BLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY AND THE HON’BLE SRI JUSTICE TUHIN KUMAR GEDELA WRIT PETITION No.3958 of 2026 O R D E R: (Per Hon’ble Sri Justice Cheekati Manavendranath Roy) Heard Mr. Sai Gangadhar Chamarty, learned counsel for the petitioner, and Ms. V. Dyumani, learned Standing Counsel for the respondent bank. 2. The petitioner is an educational institution in the name and style 8SRK Educational Society9 and it is running a Polytechnic College in the premises owned by it. The petitioner has availed loan from the respondent bank and mortgaged the premises of the said college itself as a security for repayment of the loan amount. As the petitioner, being a principal borrower, committed default in repayment of the loan amount, the respondent bank has initiated measures under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, 8the SARFAESI Act9) and brought the premises of the college, which is the secured asset, for sale in the public auction for realization of the loan amount. The auction is scheduled to be held on 13.02.2026. 3. Now, the only grievance of the writ petitioner is that there are about 45 students who are studying in the college at present and their examinations are scheduled to be commenced in the month of April to be held upto the middle of May and as possession of the secured asset was already taken by the respondent bank and if the auction is held and the petitioner along with students is evicted from the secured 4 CMR,J & GTK,J W.P.No.3958 of 2026 asset, irreparable loss would be caused to the students, who are studying in the said college. 4. Therefore, on that ground, the petitioner sought declaration that the action of the respondent bank in taking physical possession of the premises of the college is illegal. 5. Strictly speaking, the mere fact that the petitioner is running an educational institution and students are studying in the college at present cannot be a valid ground to declare the measures initiated by the respondent bank under the SARFAESI Act to take possession of the secured asset and to sell the same in the auction as illegal. So, we are not inclined to stall the process of the auction or to declare the action of the respondent bank in taking possession of the secured asset and proceeding to conduct auction as illegal, as the same is not permissible under law in the given facts and circumstances of the case. 6. However, one aspect that requires consideration is the future of the students who are studying in the said college. As we are now at the end of the academic year, undoubtedly, the students have to attend for the examinations to be held during the months of April and May. If they are not allowed to sit for the examinations in view of the auction that is going to be held on 13.02.2026, the educational career and the future of the students will be affected for the fault committed by the petitioner-educational institution in committing default in repayment of the loan amount to the bank. 7. Therefore, to strike a balance between the career and future of the students and also the interest of the bank, which has to take steps to recover the public money due from the petitioner, we direct the respondent bank to open the lock of the college of the petitioner- 5 CMR,J & GTK,J W.P.No.3958 of 2026 educational institution two days before the date on which the examinations commence and keep it open till the examinations are completed, as per the examination schedule, to enable the students to sit for the examinations, even if auction is knocked down in favour of any successful bidder in the auction that is going to be held on 13.02.2026. The respondent-bank is also directed to permit the petitioner to collect all their records relating to the college, including the records of the students, from the premises of the college. 8. The writ petition is disposed of with the above directions. There shall be no order as to costs. As a sequel, interlocutory applications, if any pending, in this case shall stand closed. ________________________________________ JUSTICE CHEEKATI MANAVENDRANATH ROY ______________________________________ JUSTICE TUHIN KUMAR GEDELA Date: 11.02.2026 IBL 6 CMR,J & GTK,J W.P.No.3958 of 2026 THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY AND THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA WRIT PETITION No.3958 of 2026 Dt: 11.02.2026 IBL