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Andhra Pradesh High Court - Amravati

M/S. Reddy Raw Rice Mill vs The Canara Bank on 9 March, 2026

Author: Cheekati Manavendranath Roy

Bench: Cheekati Manavendranath Roy

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 APHC010123802026
                    IN THE HIGH COURT OF ANDHRA PRADESH
                                  AT AMARAVATI                           [3558]
                           (Special Original Jurisdiction)

                    MONDAY,THE NINTH DAY OF MARCH
                     TWO THOUSAND AND TWENTY SIX

                                  PRESENT

THE HONOURABLE SRI JUSTICE CHEEKATI MANAVENDRANATH ROY

         THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA

                       WRIT PETITION NO: 6505/2026

Between:

   1. M/S. REDDY RAW RICE MILL, JALADANKI, JALADANKI MANDAL,
      SPSR NELLORE DISTRICT REP. BY ITS MANAGING PARTNER
      M.RAGHAVA REDDY.

                                                                ...PETITIONER

                                     AND

   1. THE CANARA BANK, SPECIALIZED ASSETS RECOVERY AND
      MANAGEMENT BRANCH (SPECIALIZED ARM BRANCH), 7 ROADS
      CIRCLE, CANARA BANK BUILDING, 2ND FLOOR, KADAPA - 516
      002., REP. BY ITS AUTHORIZED OFFICER.

   2. THE CANARA BANK, KAVALI-1 BRANCH, KAVALI, SPSR NELLORE
      DISTRICT - 524 201.

   3. THE CANARA BANK, SPECIALIZED ASSET RECOVERY AND
      MANAGEMENT BRANCH          (SPECIALIZED ARM BRANCH), KVC
      ARCADE, 3RD FLOOR, 13-1, RC ROAD, VANI NAGAR, AVILALA,
      TIRUPATI - 517 501, REP. BY ITS AUTHORIZED OFFICER.

                                                          ...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 of mandamus or any other appropriate writ
or direction declaring the action of the respondents in proposing to auction
the mortgaged properties on 10.03.2026 pursuant to the notice issued to the
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petitioner dated 17.02.2026 as illegal, arbitrary, mala-fide and in violation of
the Securitization and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 and the Security Interest (Enforcement) Rules,
2002 and consequently set aside the auction notice dated 17.02.2026
indicating the proposed auction date as 10.03.2026 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 stay the auction scheduled to be conducted on 10.03.2026 by the
respondent herein in pursuance of auction notice issued to the petitioner
dated 17.02.2026 issued by the respondent bank, pending disposal of the
Writ Petition and pass

Counsel for the Petitioner:

   1. G SRAVAN KUMAR

Counsel for the Respondent(S):

   1.
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The Court made the following:

ORDER:

(Per Hon'ble Sri Justice Cheekati Manavendranath Roy) Heard learned counsel for the petitioner.

2. Owing to the fact that the petitioner as a borrower committed default in repayment of the loan amount to the respondent-bank, the bank has initiated measures under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (for short, 'the Act') and took possession of the secured asset. Challenging the said act of taking possession of the secured asset, the petitioner has filed S.A.No.445 of 2023 before the Debts Recovery Tribunal, Visakhapatnam. While it is pending adjudication, the bank has issued sale notice to sell the secured asset. So the petitioner has filed a petition seeking amendment of the prayer. Alleging that the application seeking amendment was posted beyond the date of sale, the petitioner has filed this Writ Petition before this Court.

3. Even to challenge the sale notice, the petitioner got efficacious remedy by way of filing an application before the Debts Recovery Tribunal which is an appropriate forum to adjudicate the said lis under the Act. Therefore, we are not inclined to enter into the Writ Petition.

4. So, the Writ Petition is disposed of with a direction to the Writ Petitioner to pursue his remedy before the Tribunal. The Tribunal shall consider the amendment application and also other Interlocutory applications 4 expeditiously and pass appropriate orders on merits, according to law. 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: 09.03.2026 TM