Partly allowed

Muthoot Housing Finance Company Ltd. v. Shanthi Rajathurai Ponnusamy Paramasivam Pillai

DRAT4 Feb 2025MISC APPEAL/17/2024

Case brief

AI extract

What is this about?

The Debt Recovery Appellate Tribunal, Chennai, directed the DRT to dispose of the challenge to the sale notice expeditiously and continue the interim stay order for three months, rejecting the argument that partial payment warrants a permanent stay.

What did the court decide?

Interim stay order continued for three months; production of sale notice disposal directed expeditiously.

Muthoot Housing Finance Company Ltd. versus Shanthi… — Execution and Attachment | DRAT (2025)

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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

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Dated the 4^th day of February, 2025

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PRESENT: HON’BLE MR. JUSTICE G. CHANDRASEKHARAN

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CHAIRPERSON

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MA (SA) 17/2024

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(a rising out of SIA No.509/2024 in SA No.170/2024 on the file of DRT-III, Chennai)

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Between

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M/s Muthoot Housing Finance Company Ltd., Rep. by its Authorised Officer, No.12A, 01, 13^th Floor, Parineecrescenzo, Plot No.C/38-39, Bandrakurla Complex-G Block, Bandra (East), Mumbai 400 051.

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…..Appellant

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And

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1. Mrs. Shanthi Rajathurai Ponnusamy Paramasivam Pillai, Alias Shanthi Rajadurai

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2. Mr. T.K. Rajathurai, Alias T.K. Rajadurai

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Both are residing at

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Plot No.15, “Sree Gomathy Nagar” Polivakkam Village, Thiruvallur Taluk, Thiruvallur Dsitrict 602 002.

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…..Respondents

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Counsel for Appellant : M/s D. Satyaraj & Co. Counsel for respondents : M/s S. Santhosh & Co.

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ORDER

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This appeal is filed under Section 18 of SARFAESI Act, challenging the order passed in SIA No.509/2024 in SA No.170/2024 on the file of DRT-III, Chennai dated 26.3.2024.

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Ld. Counsel for appellant submitted that respondents/borrowers filed SA No.170/2024, challenging the Sale Notice dated 26.2.2024 fixing the public sale on 28.3.2024 and in that SA, they have also filed SIA No.509/2024 seeking stay of all further proceedings. It is submitted that Ld. Presiding Officer, DRT-III, Chennai was pleased to pass orders directing the respondents to make a deposit of 20% of the amount due i.e., Rs.4,43,400/- to show their bona fides. As per the orders passed, respondents made the said payment of Rs.4,43,400/- to the loan account with the appellant and in view of the compliance of the conditional order, stay of all further proceedings was granted by Ld. Presiding Officer, DRTIII, Chennai. It is the further submission of the Ld. Counsel for appellant that amount due as on today is more than the amount claimed in the sale notice i.e., Rs.22,16,751.26p and due to stay of all further proceedings, further measures under the SARFAESI Act could be taken, therefore, this appeal is filed.

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Ld. Counsel for respondents submitted that respondents complied with the conditional order of Ld. Presiding Officer dated 26.3.2024 and paid a sum of Rs.4,43,400/- into the loan account with the appellant.

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I have considered the rival submissions and perused the record.

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Merely because part of the amount out of the total amount due is paid, there cannot be a blanket stay of all further proceedings before Tribunal below for ever.

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In the said circumstances, this Tribunal directs the Ld. Presiding Officer, DRT-III, Chennai to dispose of SA No.170/2024 as expeditiously as possible and until disposal of the SA, interim order already granted by the Ld. Presiding Officer in SIA 509/2024 shall be continued for three months. Ld. Presiding Officer is directed to decide on the continuance of the interim order depending on the necessity and desirability, after the period of three months.

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With this observation and direction, Appeal MA (SA) 17/2024 stands disposed.

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Parties are directed to bear their own costs. Pending IAs, if any, stand closed.

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[Dictated to Steno(SN), transcribed by him, corrected, signed and pronounced by me in open court, this 4^th January , 2025)

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Sd/-

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(JUSTICE G. CHANDRASEKHARAN) CHAIRPERSON

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Muthoot Housing Finance Company Ltd. v. Shanthi Rajathurai Ponnusamy Paramasivam Pillai

Case brief

What is this about?

What did the court decide?

Muthoot Housing Finance Company Ltd. v. Shanthi Rajathurai Ponnusamy Paramasivam Pillai

Case brief

What is this about?

What did the court decide?

What the court decided

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