the parties, including the Borrowers/Petitioners and whether the petitioners had, in fact, waived such a right? In any case, the DRAT has also to consider whether the property was required to be sold in auction in terms of Rule 9 (5) of the Security In…

Reportable/Non-Reportable 
          IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA 
 
                                  Appeal No. 104 of 2018 
            (Arising out of S.A. 108 of 2017 in DRT-II, Hyderabad) 
 
 
 
 
THE HON’BLE  MR.  JUSTICE ANIL KUMAR SRIVASTAVA 
 
 
 
 
 
 
             CHAIRPERSON  
    
 
 
 
 
 
1.  
G. Basavaraj, son of Bussanna, 15-315, Victoriapet, Adoni Post, 
 
Kurnool District, Andhra Pradesh; 
 
2.  
Sri Manjunath, son of G. Basavaraj, 15-315, Victoriapet, Adoni post, 
 
Kurnool District, Andhra Pradesh; 
 
3.  
G. Aravind, son of G. Basavaraj, 15-315, Victoriapet, Adoni post, 
 
Kurnool District, Andhra Pradesh. 
 
 
 
 
 
 
 
 
 
        …  Appellants 
 
 
 
 
      -Versus- 
1.  
Sri Mahayogi Lakshmamma, Co-operative Bank Limited (AVVA BANK), 
 
No.72, Flower Bazar, Adoni, Kurnool; 
 
2.  
Dr. A. Madusudan, son of A.B. Maddilotti, Sree Padmavathi, Maternity 
 
Hospital, Victoriapet, Adoni, Kurnool District. 
 
 
 
 
 
 
 
 
 
      … Respondents  
 
Counsel for Appellants 
 
… 
Mr. Ashok Kumar Jena 
 
 
 
 
 
 
Sk. Omar Sarif 
 
Counsel for Respondent No. 1 
… 
Mr. Nemani Srinivas 
 
Counsel for Respondent No. 2 
… 
Mr. Prasenjit Pal 
 
JUDGMENT 
 
 
: 
3rd April, 2025 
 
THE APPELLATE TRIBUNAL: 
 
1. Instant appeal has been preferred by the SARFAESI 
Applicants 
against 
judgment 
and 
order 
dated              
21st 
 
December, 
2017, passed 
by Learned 
DRT-II, 
Hyderabad, dismissing S.A.108 of 2017 (G. Basavaraj & 
Others -vs- Sri Mahayogi Lakshmamma Co-operative Bank 
Limited (AVVA Bank) & Another). 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       
 
  Appeal No. 104 of   2018-DRAT-Kolkata 
2
2. 
 As per the pleadings of the parties, Securitization 
Application under Section 17 of the SARFAESI Act, 2002 
(hereinafter referred to as the 'Act') was filed challenging 
the action of the Bank, Respondent No. 1, in returning the 
cheque dated 18.3.2013 tendered by the Appellants towards 
redemption of debt and refusing to accept the Demand Draft 
No. 198222 dated 30.3.2013 for Rs.1.5 lac with a further 
relief to set aside the sale held on 30th July, 2004 and also to 
quash the Demand Notice dated 24th  December, 2003 and 
Possession Notice dated 12th April, 2004.  
3. 
 It is pleaded that the SARFAESI Applicants are the 
present owners of the secured assets which is the S.A. 
Schedule property which was originally owned by the father 
of Applicant No. 1, namely, G. Busanna, who mortgaged the 
same with the Respondent No.1/Bank on 1st December, 
1995 as security for loan of Rs.50,000.00 sanctioned to M/s. 
Veerabhadra Swamy Trades. Appellants No. 2 and 3 are the 
Partners of M/s. Veerabhadra Swamy Trades. There was 
default in repayment of the loan. Account was classified as 
N.Ρ.Α. Notices, under Section 13 (2) and 13 (4) of the Act, 
Auction Sale Notice and Demand Notice of Rs.1,01,329.00 
were issued by the Bank. In the auction sale Respondent No. 
2, namely Dr. A. Madusudan, was the highest bidder for 
Rs.5,60,000.00; although the value of the property was 
much more. 75% of the bid amount was not deposited 
within the stipulated period of fifteen days. Sale was not 
confirmed.  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       
 
  Appeal No. 104 of   2018-DRAT-Kolkata 
3
4. 
Appellants are in physical possession over the secured 
assets. 
5.  SARFAESI 
Applicants 
vide 
letter 
dated 
6.3.2013 
tendered an amount of Rs.1.50 lac towards demand made 
by the Respondent No. 1 under Demand Notice dated 
24.12.2013 by Cheque No. 550753 dated 22.3.2013 which 
was not accepted by the Bank. Thereafter, Appellants 
prepared a Demand Draft on 30th March, 2013 for Rs.1.5 lac 
and requested the Bank to receive the same. But the same 
was not accepted on the ground that they are in process of 
confirming the sale. Appellants were under the belief that 
Respondent 
No. 
1 
has 
cancelled 
the 
sale 
dated              
30th July, 2004 as the amount of 75% was not deposited. 
However, sale was confirmed after a laps

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