Allowed

Mrs Arefa Banu v. State Bank of India

DRT4 Aug 2022SA/169/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application challenging SARFAESI auction measures. The court permitted parties to effect a negotiated settlement with the auction purchaser. The bank is directed to cancel the sale certificate upon receipt of a letter from the purchaser, and the borrower is permitted to remit the reimbursable amounts to prevent further litigation.

What did the court decide?

Sale certificate to be cancelled on receipt of letter from auction purchaser; applicant permitted to remit negotiated amounts; interim stay vacated; SA disposed.

Mrs Arefa Banu versus State Bank of India — Specific Performance | DRT (2022)

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S.A. 169 of 2022 04.08.2022

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 04^th day of August, 2022

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Present: Shri Ganapathi K.R.K.

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Presiding Officer

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SARFAESI APPLICATION No. 169 of 2022

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1. Mrs.Arefa Banu

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W/o.Puhari 8, Ward-34, Muthappan Street Arakkonam, Vellore – 631 002

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2. Mrs.H.G.Faritha Banu

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W/o.A.H.Abdul Ghani 9-43B, Pallipat Road Nagari, Chittoor Andhra Pradesh – 517 590 ….Applicants

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-Vs-

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The Authorised Officer

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M/s.State Bank of India Asset Recovery Management Branch Rep. by Authorised Officer No.44, Eldams Road, 1^st Floor Teynampet, Chennai – 600 018 ….Respondent

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Counsels on record / appeared:

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Counsel for Applicants : M/s.J.Aarthi, L.Udhayrajkumar & D.Baskar Counsel for Respondent : M/s.N.Kishore Kumar & A.K.Vidhya

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ORDER

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This SA is filed challenging the measures initiated by respondent bank under

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Section 14 of SARFAESI Act before Ld. CJM, Tiruvallur in Crl.M.P. No.3612 of 2020 dated 21.01.2022, for recovery of a sum of Rs.43,02,680.87p.

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Heard Ld. counsels appearing for the respective parties. It is submitted by all the

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parties concerned that they had entered into negotiated settlement of their debt with

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S.A. 169 of 2022 04.08.2022

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respondent bank. Ld. counsel further submitted that respondent bank had considered their request for reduction of expenses incurred by them with regard to the determination of mortgage against the property. Notwithstanding the above contentions, it is also the case of applicant that the principal borrower has negotiated with auction purchaser for settling his amount and for retaining the property for himself by reimbursing the negotiated amounts payable to both auction purchaser as well as the respondent bank.

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As parties have rescinded to a negotiated settlement, they are permitted to do so. In view of affidavit filed by auction purchaser to forego the property in favour of principal borrower for amounts to be reimbursed on a negotiated, mutually accepted amount, respondent bank will be entitled to cancel the sale certificate issued in favour of auction purchaser on receipt of letter from the auction purchaser to that effect. The principal borrower / applicant in SA No.169/2022 is permitted to cause remittance of the amounts as undertaken before this Tribunal without any issue for further litigation. Interim stay, if any granted and subsisting till this day stands vacated and all other IAs, if any pending stand closed.

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With the above observations, this SA stands disposed.

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A copy of the order be communicated to the parties concerned as per extant

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guidelines.

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me in Open Court, on this the 04^th day of August, 2022)

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Sd/-

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(GANAPATHI K.R.K) PRESIDING OFFICER

Mrs Arefa Banu v. State Bank of India

Case brief

What is this about?

What did the court decide?

Mrs Arefa Banu v. State Bank of India

Case brief

What is this about?

What did the court decide?

What the court decided

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