Interim relief granted in favour of Pushpalata Sudam Nimse (Petitioner)
In Short
A borrower who failed to pay her bank loan faced an urgent auction of her mortgaged property to recover over fifty-four lakh rupees. During the court hearing, she handed over a demand draft of ten lakh rupees and asked for time to sell the property privately to clear her dues. The court recorded an agreement to pause the auction for two weeks to let her finalize negotiations.
The Parties
Party A: Pushpalata Sudam Nimse
Party B: State of Maharashtra & Ors. (including Respondent No.7 / the lending Patsanstha)
Advocates & Judges
For Party A: Learned Advocate Ms. Darshna Naval a/w Amrit Rathi
For Party B: Learned Advocate Mr. Vaibhav Charalwar, Learned Advocate Mr. Kuldeep Nikam
Judge(s): Hon'ble Justice Bharati Dangre, Hon'ble Justice Ashish S. Chavan
What the Case Was About
The petitioner took a loan from a cooperative credit society and failed to repay it on time. Because of this default, the lender obtained a recovery certificate for over fifty-four lakh rupees and scheduled an auction of her mortgaged property. Although she later paid fourteen lakh rupees, the balance remained unpaid, leading the lender to publish an auction notice. The borrower approached the High Court because she believed her property was worth much more than her total debt, and she wanted a chance to sell it privately to get a better price instead of letting the bank rush an auction.
Judgment Date
23rd October 2026
The Outcome
The court recorded an arrangement where the scheduled auction would not be given effect to for a short period while the borrower pursues private sale negotiations. The matter was listed for further consideration on a short date.
What the Court Looked At
- The court noted that the petitioner defaulted on her loan and a recovery certificate of over fifty-four lakh rupees was issued against her.
- The court observed that the petitioner paid fourteen lakh rupees toward the debt after the certificate was issued.
- The court acknowledged the petitioner's argument that the mortgaged property has a much higher value than the pending debt.
- The court noted the petitioner's statement that her son is actively negotiating a private sale of the property to clear the loan.
- The court recorded that the lender agreed to cooperate and keep the auction process in abeyance for two weeks.
- The court noted that the petitioner handed over a demand draft of ten lakh rupees to defer the auction.
What This Means For You
When a bank starts recovery proceedings and schedules an auction of your property after a loan default, sitting quietly will cause you to lose your home or land quickly. In this case, the borrower managed to halt an immediate auction only by showing up with a substantial ten lakh rupee demand draft and concrete proof that she was arranging a private sale to pay off the debt. If you are facing a sudden bank auction, simply complaining that your property is worth more is rarely enough; you must show the court and the lender a practical, money-backed plan to clear your dues. Setback Solutions can help you understand your options and coordinate next steps when you are dealing with stressful bank recovery actions.
You Still Have Options
If you are facing a bank auction, sudden recovery notices, or wondering "my property is being auctioned, what now?", remember that it is not the end of the road. You can still explore alternative settlement talks, gather funds for a private sale, or seek a second opinion to handle the crisis before your asset is sold away. Reach out to Setback Solutions for plain-language help and coordination to understand your options and plan your next step carefully. Setback Solutions is not a law firm, does not provide legal advice, and never guarantees any specific outcome.