Disposed

K Murugesan v. State Bank of India

DRAT13 Oct 2023MISC APPEAL/22/2022

Case brief

AI extract

What is this about?

The Appellant challenged an order directing a Rs. 1.34 Crore deposit related to a Sale Notice for agricultural property. The Tribunal stayed the auction proceedings pending disposal of the main Securitisation Application within three months on priority basis.

What did the court decide?

Tribunal directed to dispose of main application within three months; status quo maintained for three months; appeal disposed of.

K Murugesan versus State Bank of India — Company and Corporate | DRAT (2023)

¶1

MA (SA) 22/2022

¶2

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

¶3

Dated the 13^th of October, 2023

¶4

PRESENT: Hon’ble Mr. Justice S. Ravi Kumar CHAIRPERSON

¶5

MA (SA) 22/2022

¶6

[IA 2775/2021 in SA 636/2021 on the file of DRT-Coimbatore]

¶7

Between

¶8

K. Murugesan, M/s. Arun Poultry Farm, KSP Puram, West RG Palayam,- Sukkampalayam (PO), Palladam – 641 662. Tirupur.

¶9

……Appellant

¶10

And

¶11

M/s. State Bank of India, Rep. by its Authorised Officer, Stressed Assets Recovery Branch, No.377/1, Dr. Nanjappa Road, Behind N. S. Palaniappan Nursing Home, Coimbatore -641 018.

¶12

….. Respondent

¶13

Counsel for Appellant : Mr. R. Srinivasan for Mr. VP. Parivallal Counsel for Respondent : Mr. K. Mohandas

¶14

¶15

MA (SA) 22/2022

¶16

ORDER

¶17

This Appeal is against Order dated 27.10.2021 in SA 636/2021 of DRT, Coimbatore.

¶18

Tribunal below, directed Appellant to deposit a sum of Rs.1.34 Crores, in two instalments, with Respondent Bank, and on such deposit, directed Respondent not to proceed further; against that Order, present Appeal is preferred.

¶19

Appellant complied with Section 18(1) of SARFAESI Act, 2002, by making statutory deposit.

¶20

Heard both sides.

¶21

It is represented that main ground on which Securitisation Application filed is that, property brought for sale is an agricultural property, and Tribunal below, without considering the same, at least prima facie , directed Appellant to make deposit. It is further submitted that SA is still pending, and Appellant is ready to proceed with main Securitisation Application.

¶22

¶23

MA (SA) 22/2022

¶24

Advocate for Bank submitted that property is already sold, and is now, at the stage of delivery of possession to Auction Purchaser, but till now, possession is not delivered, in view of proceedings pending before this Tribunal and DRT.

¶25

I have perused material papers and impugned Order dated 27.10.2021.

¶26

Admittedly, main SA is still pending, and main ground on which the Sale Notice etc., challenged is not yet decided. When Appellant contended that it is an agricultural property, necessary evidence has to be let in for deciding the nature of property, and that can only be done in the enquiry of main Securitisation Application. Therefore, without going into merits and demerits of the case, I deem it appropriate, if a direction is given to Tribunal below to decide the main SA, within stipulated period, so that, rights of parties can be determined on the basis of evidence. When this was put to both side, both of them submitted, at least three months

¶27

¶28

MA (SA) 22/2022

¶29

time may be fixed for disposal of SA 636/2021, considering

¶30

the same following order is passed:-

¶31

i) DRT shall take up main Securitisation Application SA 636/2021, on priority basis, and dispose of the same, as expeditiously as possible, preferably, within three months.

¶32

ii) Till such time, that is, for a period of three months, both parties shall maintain status quo , as on today.

¶33

With the above observations, Appeal MA (SA) 22/2022 is disposed of. Both parties shall bear their own costs. All pending IAs, if any, stand closed.

¶34

[Dictated to Athistamani, PS, in open court, transcribed by her, corrected and signed by me, this 13^th of October, 2023]

¶35

[ Justice S. Ravi Kumar] CHAIRPERSON

¶36

K Murugesan v. State Bank of India

Case brief

What is this about?

What did the court decide?

K Murugesan v. State Bank of India

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

All orders in this case

Similar cases

Sri v.Ramanijam versus Pragathi Co. Operative Bank Limited

M/s Unify Labs Systems Pvt. Ltd. & Ors. versus Indian Overseas Bank & Anr.

M/s Unify Labs Systems Pvt. Ltd. & Ors. versus Indian Overseas Bank & Anr.

Mrs C Jayalakshmi Daughter of K Rajendran Wife of N Chellakani versus Canara Bank

Reji M P versus Karur Vysya Bank

Mrs C Jayalakshmi Daughter of K Rajendran Wife of N Chellakani versus Canara Bank