Allowed

Arefa Banu v. State Bank of India

DRT4 Aug 2022SA/199/2022

Case brief

AI extract

What is this about?

The Tribunal allowed a SARFAESI application challenging an auction sale. It permitted the parties to rescind to a negotiated settlement where the principal borrower would reimburse the auction purchaser and the bank. The bank was directed to cancel the sale certificate upon receiving a letter from the purchaser. The Applicant was permitted to remit the agreed amount without further litigation.

What did the court decide?

Sale certificate to be cancelled upon receipt of letter from auction purchaser; Applicant permitted to remit negotiated amounts without further litigation.

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

¶1

¶2

S.A. 199 of 2022 04.08.2022

¶3

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶4

Dated this the 04^th day of August, 2022

¶5

Present: Shri Ganapathi K.R.K. Presiding Officer

¶6

SARFAESI APPLICATION No. 199 of 2022

¶7

1. Mrs.Arefa Banu

¶8

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

¶9

2. Mrs.H.G.Faritha Banu

¶10

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

¶11

Vs.

¶12

The Authorised Officer

¶13

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

¶14

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

¶15

ORDER

¶16

This SA is filed challenging the sale held on 25.03.2022 pursuant to Sale Notice dated 24.02.2022 issued by respondent bank for recovery of a sum of Rs.38,28,384/-.

¶17

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

¶18

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

¶19

¶20

S.A. 199 of 2022 04.08.2022

¶21

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.

¶22

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.199/2022 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.

¶23

With the above observations, this SA stands disposed.

¶24

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

¶25

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

¶26

Sd/- (GANAPATHI K.R.K) PRESIDING OFFICER

Arefa Banu v. State Bank of India

Case brief

What is this about?

What did the court decide?

Arefa Banu 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

Similar cases

Arul Selvi versus Indian Bank

S Kavitha versus Bank of India

S Uthayakumar versus Indian Overseas Bank

Suseel versus Indian Bank

Mrfs G Ellamal versus Indian Bank

Gfreat Madras Builders versus State Bank of India