APHC010675952025 IN THE HIGH COURT OF ANDHRA PRADESH (Special Original Jurisdiction) TUESDAY, TWO THOUSAND AND TWENTY SIX THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY THE HONOURABLE SRI WRIT PETITION NO: 86/2026 Between: 1. SUBHAN KRAFTS PAPER (P) LTD, REP. BY ITS MANAGING DIRECTOR SMT. LINGISETTY NAGA RAJESWARI, W/O. L.VENKATA SWAMY, AGED 68 YEARS, RESIDENT OF FLAT NO.G 2, LAKSHMI NARAYANA NILAYAM, 2/1 VI DISTRICT - 522 006 ANDHRA PRADESH. 02. 2. SMT. LINGISETTY SUBBALAXMI,, W/O. L.SRINIVAS, AGED 38 YEARS, RESIDENT OF FLAT NO. G NILAYAM, 2/1 VIKAS NAGAR, GUNTUR DISTRICT ANDHRA PRADESH. 03. 3. SRI. LINGISETTY SRINIVAS,, S/O. VENKATA SWAMY, AGED 48 YEARS, RESIDENT OF FLAT NO.G NILAYAM, 2/1 VIKAS NAGAR, GUNTUR DISTRICT ANDHRA PRADESH. 1. THE AUTHORIZED OFFICER, CANARA BANK (ERSTWHILE SYNDICATEBANK) STRESSED ASSET MANAGEMENT BRANCH, SITUATED AT D.NO. 10 PLOT NO.85, BESIDE RAIL NILAYAM, S.D.ROAD, SECUNDERABAD - 500 026, TELANGANA STATE. 2. THE BRANCH MANAGER, CANARA BANK (ERSTWHILE SYNDICATE IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) TUESDAY, THE SIXTH DAY OF JANUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA WRIT PETITION NO: 86/2026 SUBHAN KRAFTS PAPER (P) LTD, REP. BY ITS MANAGING DIRECTOR SMT. LINGISETTY NAGA RAJESWARI, W/O. L.VENKATA SWAMY, AGED 68 YEARS, RESIDENT OF FLAT NO.G 2, LAKSHMI NARAYANA NILAYAM, 2/1 VIKAS NAGAR, GUNTUR 522 006 ANDHRA PRADESH. 02. SMT. LINGISETTY SUBBALAXMI,, W/O. L.SRINIVAS, AGED 38 YEARS, RESIDENT OF FLAT NO. G-2, LAKSHMI NARAYANA NILAYAM, 2/1 VIKAS NAGAR, GUNTUR DISTRICT - ANDHRA PRADESH. 03. LINGISETTY SRINIVAS,, S/O. VENKATA SWAMY, AGED 48 YEARS, RESIDENT OF FLAT NO.G-2, LAKSHMI NARAYANA NILAYAM, 2/1 VIKAS NAGAR, GUNTUR DISTRICT - ...PETITIONER(S) AND THE AUTHORIZED OFFICER, CANARA BANK (ERSTWHILE STRESSED ASSET MANAGEMENT BRANCH, SITUATED AT D.NO. 10-3-163 AND 10-3-163/A, GROUND FLOOR, PLOT NO.85, BESIDE RAIL NILAYAM, S.D.ROAD, SECUNDERABAD 500 026, TELANGANA STATE. THE BRANCH MANAGER, CANARA BANK (ERSTWHILE SYNDICATE IN THE HIGH COURT OF ANDHRA PRADESH [3558] THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY JUSTICE TUHIN KUMAR GEDELA SUBHAN KRAFTS PAPER (P) LTD, REP. BY ITS MANAGING DIRECTOR SMT. LINGISETTY NAGA RAJESWARI, W/O. L.VENKATA SWAMY, AGED 68 YEARS, RESIDENT OF FLAT NO.G- KAS NAGAR, GUNTUR SMT. LINGISETTY SUBBALAXMI,, W/O. L.SRINIVAS, AGED 38 2, LAKSHMI NARAYANA 522 006, LINGISETTY SRINIVAS,, S/O. VENKATA SWAMY, AGED 48 2, LAKSHMI NARAYANA 522 006, ...PETITIONER(S) THE AUTHORIZED OFFICER, CANARA BANK (ERSTWHILE STRESSED ASSET MANAGEMENT BRANCH, 163/A, GROUND FLOOR, PLOT NO.85, BESIDE RAIL NILAYAM, S.D.ROAD, SECUNDERABAD THE BRANCH MANAGER, CANARA BANK (ERSTWHILE SYNDICATE 2 CMR,J & GTK,J W.P.No.86 of 2026 BANK) MAIN BRANCH, GUNTUR - 522 003, ANDHRA PRADESH. 03. 3. SRI LYANAVOLU SIVA NAGESWARA RAO, S/O. NOT KNOWN TO THE APPLICANTS. MAJOR, RESIDENT OF SATULURU VILLAGE, SATULURU POST, NADENDIA MANDALAM, PALNADU DISTRICT - 522 549, ANDHRA PRADESH. 04. 4. SRI BAYYANA CHALAPATHI RAO, S/O. NOT KNOWN TO THE APPLICANTS. MAJOR, RESIDENT OF SATULURU VILLAGE, SATULURU POST, NADENDIA MANDALAM, PALNADU DISTRICT - 522 549. 05 5. THE PRESIDING OFFICER, DEBT RECOVERY TRIBUNAL, DOOR NO. 31-31-21, NARAYAN BHAVAN, SAI BABA STREET, DABA GARDENS, VISAKHAPATNAM - 530020. ...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 an appropriate Writ, order or direction, more particularly one in the nature of Writ of Mandamus, declaring the action of the 1ST and 2 Respondents in issuing the impugned e-auction sale notice, dated 27-10- 2025, and all further consequential proceedings including the alleged e- auction said to have been conducted thereafter in respect of Item No.1 and Item No.2 of the mortgaged properties pertaining to the petitioners, as illegal, arbitrary, violative of Rule 8(5) 8(6) of the Security Interest (Enforcement) Rules, 2002, contrary to Section 13(8) of the SARFAESI Act, 2002, vitiated by non-issuance of statutory redemption notice, non furnishing of valuation reports, adoption of grossly undervalued reserve price and violation of principles of natural justice, and consequently set aside the e-auction sale notice, dated 27-10-2025 as well as the alleged auction proceedings pursuant thereto and further direct the 1st and 2nd Respondents to strictly follow the mandatory procedure under the SARFAESI Act and 2002 Rules before taking any coercive measures against the secured assets, 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 to suspend the operation of the impugned e-auction sale notice, dated 27-10- 3 CMR,J & GTK,J W.P.No.86 of 2026 2025 issued by the 1st Respondent and all further consequential proceedings, including confirmation of sale, issuance of sale certificate, taking physical possession, removal of plant & machinery or any movable assets from the petitioners’ industrial premises, and restrain the 3rd and 4th Respondents/ alleged auction purchasers from interfering with or taking away any movable or immovable secured assets, pending disposal of the above Writ Petition and pass Counsel for the Petitioner(S): 1. KRISHNA KISHORE BHATRAJU Counsel for the Respondent(S): 1. 4 CMR,J & GTK,J W.P.No.86 of 2026 The Court made the following: ORDER: (Per Hon’ble Sri Justice Cheekati Manavendranath Roy) Heard learned counsel for the petitioners. 2. The petitioners are the principal borrowers, who availed loan from the respondent Nos.1 and 2-Bank. They offered the property in question as security for repayment of the loan availed by them. On the ground that the principal borrowers have 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, ‘the Act’), for realization of the loan amount by bringing the secured asset for sale by way of issuing e-auction sale notice dated 27.10.2025. 3. Challenging the said measures initiated by the Bank, the petitioners have already approached the Debts Recovery Tribunal, Visakhapatnam, by way of filing securitization application No.415 of 2024, which is the appropriate forum to adjudicate the lis. Alongside the said securitization application, they have also filed I.A.No.4281 of 2025 seeking stay of further proceedings. 4. Therefore, as the petitioners have already invoked jurisdiction of the Tribunal, which is the appropriate forum, for redressal of the grievance and as the said securitization application along with the stay application is pending before Tribunal, we are not inclined to interfere in the matter and to entertain the writ petition, permitting the petitioners to maintain parallel proceedings before this Court and the Tribunal, which is not permissible under law. 5. However, it is the grievance of the petitioners that the stay application in I.A.No.4281 of 2025 is not being disposed of even though there is urgency to hear and consider the same. 6. Therefore, in the said facts and circumstances of the case, the Writ Petition is disposed of with a direction to the Debts Recovery Tribunal, Visakhapatnam, to consider and hear I.A.No.4281 of 2025, which stood 5 CMR,J & GTK,J W.P.No.86 of 2026 posted to 08.01.2026 and dispose of the said stay petition expeditiously after hearing both the parties, on merits, according to law, within one week from date of producing the copy of this order before the Tribunal. There shall be no order as to costs. As a sequel, Interlocutory Applications pending, if any, shall stand closed. ________________________________________ JUSTICE CHEEKATI MANAVENDRANATH ROY _____________________________ JUSTICE TUHIN KUMAR GEDELA Date: 06.01.2026 Note: Issue C.C. by 07.01.2026 B/o. MDP