Telangana High Court Dismisses Union Bank’s Appeal Against Cancellation of Property Auction

The Telangana High Court dismissed an appeal filed by Union Bank of India challenging the cancellation of an auction of a company property under liquidation.

A Division Bench held that while banks are empowered to recover dues through auctions, they must follow due process, act transparently, and involve the official liquidator.

The Court noted that despite a higher offer being available, the bank conducted an online auction at a lower price without coordinating with the liquidator, who represents the interests of all creditors and workers.

Upholding the single judge’s order, the Court ruled that the auction was rightly cancelled due to procedural lapses.