Hdfc Bank v. Naveen Kondal Nalla
Case brief
What is this about?
The DRAT allowed the HDFC's appeal against a DRT order quashing SARFAESI proceedings. The bench remanded the matter to the DRT for a fresh hearing, criticizing the lower court for relying exclusively on a forensic report and a criminal quashing order without considering repayment history, loan agreements, or correspondences suggesting good faith by bank officials. The appeal was allowed and the DR
What did the court decide?
The appeal was allowed and the judgment of the DRT dated 22nd June, 2020 was set aside. The matter was remanded to the DRT for a fresh disposal.
IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA
In Diary No. 311 of 2020
(Arising out of S.A. 178 of 2019 in DRT-1, Hyderabad)
THE HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA CHAIRPERSON
08.09.2022 Housing Development Finance Corporation … Appellant -VsNaveen Kondal Nalla … Respondent
Ms. Aparajita Rao, Learned Counsel for Appellant
THE APPELLATE TRIBUNAL :
Mentioned
Learned Counsel for Appellant made an oral mention that in the judgment dated 7th September, 2022 in the first line the date has been wrongly typed as “22nd June, 2022” instead of “22nd June, 2020”. Further in para 16 in the third line “Visakhapatnam” has been typed instead of “Hyderabad”.
The aforesaid typographical errors have been corrected by me today in red ink.
Accordingly, the judgment dated 7th September, 2022 stands corrected to the extent indicated above.
Issues for consideration
3 issues framed by the court
Whether the Debt Recovery Tribunal erred in quashing SARFAESI proceedings solely based on the pendency of criminal proceedings without adjudicating on the quantum of loan and repayment history.
Whether the Tribunal should have considered the High Court's finding that the bank officials acted in good faith when determining the validity of the security interest.
Whether e-mail correspondence between the borrower and the bank indicating requests for changes to the power of attorney holder was duly considered before quashing the auction proceedings.
Parties & counsel
- appellant
Housing Development Finance Corporation
- respondent
Naveen Kondal Nalla
Coram
Anil Kumar Srivastava
Case details
As recorded by the court registry
- Court
- DRAT
- Decided on
- · September
- CNR
- 191090003112020
- Topic
- Banking and Recovery
All orders in this case
5 orders share this CNR
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