Authority: High Court (Civil Appellate Jurisdiction)
Order Date: 21st August 2026
Case Overview
- Petitioners: Prajakta Properties Pvt Ltd through Pradip Indulkar and others.
- Respondents: State Bank of India through Authorized Officer and others; also includes Borrower (Respondent No.2) and Coborrower (Respondent No.3, now deceased).
- Background: Prajakta Properties was the successful bidder/auction purchaser in an auction sale conducted by the Recovery Officer of the Debt Recovery Tribunal, Pune.
- On 12 June 2026, the Debt Recovery Appellate Tribunal (DRAT), Mumbai, in an interim application filed by the borrowers, issued an order staying the confirmation of the sale in favour of the petitioner, without making the petitioner a party to the proceedings.
- The petitioner's counsel argued that the borrowers were aware of the DRT proceedings and were "fencesitters," and therefore the DRAT should not have granted the interim stay without the petitioner being joined.
Final Outcome
- The Court held that, as the impugned order is ad‑interim and the DRAT proceedings are ongoing, the petitioner must be joined as a party in the pending Regular Appeal No. 46 of 2026 and in any interim applications therein.
- The Court directed Respondent No. 2 (the borrower) to ensure the petitioner is joined within two weeks from the date of this order.
- Once joined, the petitioner may file applications to vacate the DRAT interim stay; any such applications shall be decided by the DRAT on their merits, expeditiously and within six weeks of the petitioner’s joining.
- All rights and contentions of the parties remain open. The writ petition and any pending applications are disposed of.
Topics: Debt Recovery, Auction Sale, Court Order