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Judgment
The Appellants/Borrowers have filed I.A. No. 28/2026 in Regular Appeal No. 02/2026. The said Interlocutory Application seeks, inter alia, a direction to Respondents to maintain status quo qua in respect of the properties in question.
The brief facts of the application are as follows: That the Appellants are principal/borrower of the Respondent No.1/Bank but their loan account was classified as a Non-Performing Asset (NPA) on 31.08.2023. Consequently, Respondent No. 1/Bank initiated proceedings under the provisions of the SARFAESI Act, 2002; that, the Respondent No.1/Bank issued demand notice under section 13 (2) of SARFAESI Act on 04.09.2023 and taken the symbolic possession qua the properties under section 13 (4) of SARFAESI Act on 26.12.2023; that, Respondent No.1/Bank, thereafter, moved application before the Additional Chief Judicial Magistrate, Ankleshwar and obtained the order on 21.02.2024 for taking physical possession of the properties in questions. Aggrieved by the measures taken by the Respondent No. 1/Bank, the Appellants filed Securitisation Application No. 173/2024 before the Learned Presiding Officer, DRT-II, Ahmedabad. However, the said Securitisation Application was dismissed by order dated 12.11.2025. Being aggrieved by the order dated 12.11.2025 passed in S.A. No. 173/2024, the Appellants preferred the present Regular Appeal No. 02/2026, wherein the present I.A. No. 28/2026 has been filed seeking the reliefs stated in Para No.2 above.
Heard the Learned Counsel for the parties and perused the record.
The Learned Counsel for the Appellants/Borrower would submit that while passing the order dated 27.11.2025 on the waiver application, the Learned Predecessor Chairperson had directed the Respondents not to create any third-party interest or encumbrance in respect of the properties in question and not to alter any material features thereof until the next date of hearing.
Per contra, the Learned Counsel for the Respondent No.1/Bank would submit that the subject matter of the present appeal pertains to two properties, namely, one commercial property and one residential property and both the properties have already been sold in auction to the successful auction purchasers, namely Respondent Nos. 2 and 3, possession has been handed over to them and Sale Certificates have also been issued in their favour.
The Learned Counsel for the Respondent No.1/Bank would further submit that all actions undertaken by the Bank were strictly in accordance with law and were taken to safeguard its interest by recovering the outstanding dues from the Appellants' Non-Performing Asset (NPA) account.
The perusal of the order dated 27.11.2025 would reflect that the Learned Predecessor Chairperson had specifically restrained the Respondents from creating any third-party interest or encumbrance in respect of the properties in question and from making any material alteration thereto.
The Learned Counsel appearing for the parties fairly concede that the said order continues to remain in force. The principal relief sought in the present application is also for maintaining status quo in respect of the properties in question.
In view of the above, the I.A. No. 28/2026 is disposed of with a direction that Respondent Nos. 2 and 3 shall maintain status quo qua in respect of the properties in question i.e., not to create any third-party rights, title, interest or encumbrance in the properties, nor shall they make any material change, addition or alteration therein until further orders of this Tribunal.
List the case on 28.10.2026 for final hearing.