Disposed

State Bank of India v. Sre Bagawathi Tex and 3others

DRAT19 Jun 2025MISC APPEAL/19/2025

Case brief

AI extract

What is this about?

The Debt Recovery Appellate Tribunal disposed of an appeal challenging an interim stay order on an e-auction sale. Recognizing that the amount was paid and a third-party interest had been created, the Tribunal directed the DRT to decide the main matter on merits.

What did the court decide?

Appeal disposed; DRT directed to dispose SA 858/2024 expeditiously; parties bear own costs.

State Bank of India versus Sre Bagawathi Tex and 3others — Specific Performance | DRAT (2025)

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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

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Dated the 19^th Day of June, 2025

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PRESENT: HON'BLE MR. JUSTICE G. Chandrasekharan CHAIRPERSON

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MA (SA) 19/2025

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(Arising out of SA 858/2024 on the file of DRT, Coimbatore)

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Between

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The Authorized Officer Cum Chief Manager State Bank of India, SME Branch - Pallipalayam. No.12, Bye Pass Road, Pallipalayam. Namakkal District - 638 006 …Appellant

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And

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M/s. Sre Bagawathi Tex, As MSME Partnership Firm, Represented by One of it's Partners Mr.R.Thangaraj No.3/39, Sathya Nagar T.Kailasampalayam, Tiruchengode, Namakkal - 637 209

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Mrs.R.Ponnammal, W/o.Late T.Ramasamy No.3/39, Sathya Nagar, T.Kailasampalayam, Tiruchengode, Namakkal - 637 209

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Mr.R.Thangaraj. S/o.Late T.Ramasamy No.3/39, Sathya Nagar, T.Kailasampalayam, Tiruchengode, Namakkal-637 209

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Mrs.Kalaiarasi,

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W/o.Mr.Subramani,

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No.163/3, Kombai Nagar,

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Salem Road, Tiruchengode - 637 209 …..Respondents

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Counsel for Appellant : Mr. M.L.Ganesh Counsel for Respondents : Mr.Adrian D.Rozario

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ORDER

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1. This appeal is filed under Section 18 of the SARFAESI Act challenging the order passed in IA 3985/2024 in SA 858/2024 on 14.11.2024 by the Learned Presiding Officer, DRT, Coimbatore.

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By the said order passed in IA 3985/2024, the Learned Presiding Officer granted interim stay not to confirm the sale / issue sale certificate till 25.11.2024, pursuant to the sale notice dated 23.08.2024 and if the sale held on 10.10.2024 with respect to the petition schedule mentioned properties, subject to payment of entire amount claimed i.e., Rs.1,95,33,836/- within a weeks’ time i.e., on or before 21.11.2024 directly to the respondent bank.

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It is now submitted by the Learned Counsel for appellant that this amount was partly paid subject to confirmation of payment of balance amount. Be that as it may, it is the submission of Learned Counsel for appellant that instead of wasting time before this Tribunal, he requested a direction to the Learned Presiding Officer, DRT, Coimbatore to dispose the SA 858/2024 on merits and in accordance with law.

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Learned Counsel for respondents submitted that the amount as ordered by the DRT was paid. 3^rd respondent, who appeared in person, submitted that respondents paid a sum of Rs.2,04,00,000/-.

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The SA 858/2024 was filed challenging the e-auction sale conducted by the bank on 10.10.2024. When sale was already held and 3^rd party interest is

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created, it is necessary that the DRT dispose the SA 858/2024 to give a finding whether the sale was held following the measures under SARFAESI Act.

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In the said circumstances, this Tribunal directs the Learned Presiding Officer, DRT, Coimbatore to dispose SA 858/2024 as expeditiously as possible.

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Accordingly, this appeal MA (SA) 19/2025 is 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 (DD), transcribed by her, corrected, signed and pronounced by me in open court, this 19^th June, 2025]

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Sd/- [Justice G. Chandrasekharan] CHAIRPERSON

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State Bank of India v. Sre Bagawathi Tex and 3others

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sre Bagawathi Tex and 3others

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

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