Authority: High Court (Judge Partha Sarathi Chatterjee)

Order Date: 15 October 2026

Case Overview

  • Petitioners: Amit Paul & Anr. (advocated by Mr. Uday Narayan Betal) filed WPA 30573 of 2026 seeking to set aside the e‑auction dated 8 January 2026 and the sale certificate dated 23 February 2026 issued in favour of the auction purchaser.
  • Respondents: Reserve Bank of India & others, including Bandhan Bank (secured creditor) represented by Mr. Sayak Ranjan Ganguly, Ms. Srijani Ghosh, Ms. Simrin Hussain.
  • Background: Petitioners entered a partnership agreement to operate a liquor shop and obtained a credit facility from Bandhan Bank, creating an equitable mortgage over a property. Default led Bandhan Bank to classify the loan as a Non‑Performing Asset and invoke the SARFAESI Act, issuing a notice under Section 13(2) on 27 December 2024 and conducting an e‑auction of the mortgaged property.
  • Allegations: Petitioners claim the property’s market value is approximately Rs 85 lakh but was sold for Rs 16 lakh, alleging fraud by the husband of respondent No. 4 and seeking cancellation of the sale certificate and the e‑auction.
  • Legal Points Raised: Petitioners argue that the question of fraud falls outside the SARFAESI tribunal’s jurisdiction under Section 17 and should be decided by a civil court; they also contend that the limitation period for filing an application under Section 17 has expired, seeking condonation of delay, citing the unreported decision in APO 95 of 2025 (M/s. Superb Drugs Pvt. & Ors. Vs. IDBI Bank & Anr.).

Court’s Reasoning

  • The Court observed that the petitioners have not exhausted the statutory alternative remedies; they may approach a civil court or file an application under Section 17 of the SARFAESI Act.
  • The limitation period for a Section 17 application had indeed expired; however, the Court noted that condonation of delay could be sought, referencing the earlier decision.
  • Given the availability of appropriate forums, the writ petition was deemed not maintainable.

Final Outcome

  • The writ petition is dismissed. The order does not preclude the petitioners from approaching the appropriate forum (civil court or SARFAESI tribunal) to ventilate their grievances.

Topics: Property Auction, SARFAESI Act, Court Dismissal