SARFAESI Act — Fresh auction notice during pendency of S.A. — Availability of alternative remedy before DRT (Paras 4–8)
Issue: Whether writ petition is maintainable challenging fresh sale notice issued during pendency of securitisation application before DRT.
Facts: Petitioners/guarantors challenged fresh auction notice dated 17.02.2026 issued by Union Bank of India during pendency of S.A.No.713 of 2025 before DRT; earlier auction notice dated 28.10.2025 was already under challenge and interim order staying confirmation of sale was operating, but sale failed for want of bidders.
Held: Since petitioners have effective remedy before DRT either by filing fresh S.A. or interlocutory application challenging subsequent sale notice, High Court relegated parties to DRT while granting limited protection. (Paras 4–8)
SARFAESI proceedings — Interim protection — Status quo pending consideration by DRT (Para 8(i))
Issue: Whether interim protection should be granted pending consideration of challenge to fresh auction notice.
Facts: Petitioners sought stay of auction scheduled pursuant to fresh sale notice dated 17.02.2026 contending that challenge to earlier measures was pending before DRT.
Held: Petitioners were permitted to approach DRT within one week challenging fresh sale notice, and meanwhile, status quo existing as on date of order was directed to be maintained till DRT passed orders on such application. (Para 8(i))
Debt Recovery Tribunal — Expeditious disposal — Duty of parties to cooperate (Para 8(ii))
Issue: Whether time-bound directions for disposal of securitisation application are warranted.
Facts: S.A.No.713 of 2025 challenging SARFAESI measures remained pending while parties continued interlocutory litigation relating to auction notices and OTS proposals.
Held: Parties were directed to cooperate with DRT for expeditious hearing, and DRT was requested to dispose of S.A. preferably within two months after completion of arguments. (Para 8(ii))
