Authority: Supreme Court of India, Civil Appellate Jurisdiction

Order Date: 13 October 2026

Case Overview

  • Parties: Appellants – Sarita Shailendra Tiwari & Shailendra Indramani Tiwari; Respondent – Axis Bank Limited. Intervenor/Auction purchaser – Bhavik Choudhary, represented by counsel Naveen Chomal.
  • Background: The appellants obtained a credit facility from Axis Bank in 2021. Default led the bank to issue a notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 on 18 September 2025, demanding Rs.4,01,36,821.
  • On 10 January 2025 the bank took symbolic possession under Section 13(4) of the Act.
  • The appellants filed Securitisation Application No. 578 of 2025 before the Debt Recovery Tribunal‑III, Mumbai, challenging the demand notice dated 15 July 2025, the possession notice dated 10 October 2025, and the auction sale notice dated 12 November 2025.
  • The bank’s Section 14 application was allowed by the Additional District Magistrate on 5 January 2026 and subsequently on 20 May 2026, after which physical possession was taken by the bank.
  • On 19 June 2026 the appellants filed IA No. 2277 of 2026 seeking amendment to the pending Securitisation Application, challenging the Section 14 proceedings and the 5 January 2026 order.
  • On 11 July 2026 the appellants filed IA No. 2575 of 2026 seeking amendment to include valuation, reserve price and other incidental matters. The DRT allowed this amendment on 20 July 2026, directing that the proceedings under Section 14 be placed on record.
  • The bank filed Writ Petition No. 9738 of 2026 before the High Court of Bombay on 5 August 2026, challenging the amendment order.
  • High Court impugned orders: (i) 5 August 2026 – stayed the Securitisation Application proceedings on the ground of jurisdictional lapse and lack of condonation of delay; (ii) 18 August 2026 – directed that steps taken pursuant to the auction sale notice dated 24 June 2026 would be subject to the outcome of the writ petition.
  • Despite the stay, the bank proceeded with the auction on 20 August 2026 and confirmed the sale to Bhavik Choudhary. A sale certificate was issued on 8 September 2026.
  • The Supreme Court, on 10 September 2026, ordered a status‑quo with respect to the nature, title and possession of the suit property and issued notice.
  • On the present hearing (13 October 2026) the Court noted that the auction is complete, possession remains with Axis Bank, and the Securitisation Application is pending before the DRT.

Final Outcome

  • The Supreme Court set aside both impugned High Court orders dated 5 August 2026 and 18 August 2026, and treated Writ Petition No. 9738 of 2026 as disposed.
  • The Court directed the Debt Recovery Tribunal‑III, Mumbai to dispose Securitisation Application No. 578 of 2025 (as amended on 20 July 2026) within ten weeks from the date of this order.
  • Until disposal, Axis Bank shall continue to retain possession of the mortgaged property.
  • The parties are granted two weeks to file their responses.
  • The appeals are disposed of in these terms with no order as to costs.

Topics: Court Order, Banking Dispute