Ionosphere Creations SLP Dismissed, Review Permitted

Authority: Supreme Court of India

Order Date: 01-09-2026

Parties: Ionosphere Creations Private Limited (petitioner) vs Rupesh Agrawal & Ors (respondents); Respondent No.1 is the Bank.
Origin: Petition for Special Leave to Appeal (C) No.30618/2026 arising from the High Court judgment dated 29‑07‑2026 in WP No.30195/2026, which dismissed the writ petition challenging orders under the SARFAESI Act.
Background: The High Court upheld orders passed by the Debt Recovery Tribunal (DRT) Allahabad, the Debt Recovery Appellate Tribunal (DRAT) and the District Magistrate Bhopal under sections 13 and 14 of the SARFAESI Act, rejecting the petitioners’ claim that a pending civil suit barred possession of the mortgaged property (House No. E‑2/8, Arera Colony, Bhopal). The court allowed the petitioners to protect the property by clearing the debt with a demand draft of Rs 1 crore.
Proceedings before the Supreme Court: Senior Counsel Shyam Divan appeared for the petitioner; Senior Counsel Navin Pahwa appeared for the respondents; senior counsel Gaurav Agarwal appeared for Respondent No.3 (Bank); counsel Vinay Garg appeared for the borrowers. The petitioner had also filed Review Petition No.1603/2026 in the High Court.
Additional Matter: The Court noted a connected SLP (Civil) No.26906/2026 filed on the same day.

The Supreme Court disposed SLP No.30618/2026, granting the petitioner liberty to continue with Review Petition No.1603/2026 before the High Court and, if an adverse order is passed, to file a fresh Special Leave Petition.
The hearing of the connected SLP No.26906/2026 is deferred until the review petition is decided.
The interim order issued earlier remains in force.
As per the Court’s direction, the petitioner has deposited Rs 1 crore with the Bank.

Topics: SARFAESI Act, Banking Regulation