[Cites 2, Cited by 0]
Madhya Pradesh High Court
M/S Saree Sangam Through Proprietor ... vs Uco Bank on 25 February, 2026
Author: Anand Pathak
Bench: Anand Pathak, Anil Verma
NEUTRAL CITATION NO. 2026:MPHC-GWL:7339
1 WP-7165-2026
IN THE HIGH COURT OF MADHYA PRADESH
AT GWALIOR
BEFORE
HON'BLE SHRI JUSTICE ANAND PATHAK
&
HON'BLE SHRI JUSTICE ANIL VERMA
ON THE 25th OF FEBRUARY, 2026
WRIT PETITION No. 7165 of 2026
M/S SAREE SANGAM THROUGH PROPRIETOR MANISH MITTAL
AND OTHERS
Versus
UCO BANK AND OTHERS
Appearance:
Shri F.A. Shah - Advocate for the petitioners.
Shri Ajay Sharma - Advocate for respondents/Bank.
ORDER
Per: Justice Anand Pathak
Instant petition is preferred under Article 226 of the Constitution by
borrowers seeking following reliefs:-
"In view of the facts and grounds stated hereinabove, the
Petitioners most respectfully pray that this Hon'ble Court
may kindly be pleased to issue an appropriate writ, order or
direction, more particularly in the nature of Certiorari,
quashing and setting aside:
A. the impugned E-Auction Notice dated 23.01.2026;
B. and further direct the Respondents to consider and
decide the Petitioners' representation dated 19.02.2026
for one time settlement of dues:
C. along with grant of any other relief deemed fit in the
interest of justice."
2. It is the submission of learned counsel for the petitioners that
petitioners are borrowers of respondent Bank and committed default
recently. Therefore, his account termed as NPA and in consequences thereof,
NEUTRAL CITATION NO. 2026:MPHC-GWL:7339
2 WP-7165-2026
respondent/Bank intends to auction the property mortgaged by borrowers.
3. It is specific submission of learned counsel for the petitioners that
total liability including penal interest etc. comes around Rs.80,00,000/-, for
which petitioners are ready to pay Rs.40,00,000/- today itself and for
remaining Rs.40,00,000/- they are seeking one month's time. However,
respondents intend to proceed with auction of mortgaged property which is
around Rs.10 Crores of value but wants to auction it at throw away price of
Rs.06 Crores. For Rs.80,00,000/- NPA amount, an asset worth Rs.10 Crores
would be disposed of.
4. Learned counsel for the petitioners also informs this Court that an
application under Section 17 of Securitization and Reconstruction
of Financial Assets and Enforcement of Security Interest Act, 2002 is filed
before Debt Recovery Tribunal, Jabalpur but Presiding Officer at Debt
Recovery Tribunal, Jabalpur is not available, therefore matter went to Debt
Recovery Tribunal (Uttar Pradesh) at Allahabad. Since no Presiding Officer
is available at Allahabad also, therefore, Presiding Officer of Uttarakhand,
Debt Recovery Tribunal is taking important matters only and this is cause of
concern for petitioners. Meanwhile, auction would take place and auction
deal would be finalized.
5. Learned counsel for the respondents fairly submits that if any
application is preferred by petitioners under Section 17 of Securitization and
Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002, then they may pray before the jurisdictional Debt Recovery
Tribunal where Bank would definitely consider the proposal in accordance
NEUTRAL CITATION NO. 2026:MPHC-GWL:7339
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with law.
6. Considering the submissions and fact situation, as well as scope of
interference, this Court is of the opinion that petitioners must approach Debt
Recovery Tribunal with an urgent hearing application and proposal so
submitted in pending application under Section 17 of Securitization and
Reconstruction of Financial Assets and Enforcement of Security Interest Act,
2002 (S.A.No.196/2026) preferred by borrowers/petitioners. If such
application is preferred, then said proposal shall be considered by Debt
Recovery Tribunal without delay preferably on 27/28.2.2026 whichever date
is convenient to Debt Recovery Tribunal and if on 28.2.2026, Debt Recovery
Tribunal remains closed, then request is for consideration of the case on
27.2.2026 itself. So that petitioners may put-forth their proposal which may
be considered by Bank in accordance with law.
7. Petition stands disposed of with aforesaid observations.
8. Certified copy as per rules.
(ANAND PATHAK) (ANIL VERMA)
JUDGE JUDGE
(alok)
