Dismissed

G Selvam v. The a O M s Fullerton India Home Finance Company Limited

DRT18 Oct 2022SA/299/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal dismissed the applicants' statutory appeal challenging a possession notice issued by the respondent financial institution under the SARFAESI Act. The court held there were no infirmities in the procedure adopted by the bank, rendering the appeal devoid of merits.

What did the court decide?

Statutory Appeal dismissed without costs; interim stay, if any, vacated; all other pending IAs closed.

G Selvam versus The a O M s Fullerton India Home… — Contract and Commercial Disputes | DRT (2022)

SA No.299/2022

18.10.2022

IN THE DEBTS RECOVERY TRIBUNAL – III, CHENNAI

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Dated this the 18^th day of October, 2022

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

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S.A. No. 299 of 2022

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G. Selvam, S/o. Govindasamy, Proprietor of G. Selvam Bharani Traders No.174A, Pillaiyar Kovil Street, Melakudiyiruppu, Udayarpalayam Taluk, Jayamkondam, Jayamkondamcholapuram, Ariyalur – 621 802 Also at Survey No.260/6B, Udaiyarapalayam Taluk Jayamkondam, Jayamkondamcholapuram, Ariyalur – 621 802 2. K. Kayathri, W/o. G. Selvam No.174A, Pillaiyar Kovil Street, Melakudiyiruppu, Udayarpalayam Taluk, Jayamkondam, Jayamkondamcholapuram, Ariyalur – 621 802 3. G. Selvam Bharani Traders No.174A, Pillaiyar Kovil Street, Melakudiyiruppu, Udayarpalayam Taluk, Jayamkondam, Jayamkondamcholapuram, Ariyalur – 621 802 ….Applicants – Vs. – The Authorised Officer, Fullerton India Home Finance Co. Ltd, Regd Office at Megh Towers, 3^rd Floor, New No.165, Poonamallee High Road, Maduravoyal, Chennai – 600 095 ….Respondent

SA No.299/2022

18.10.2022

Counsels on record / appeared:

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Counsel for Applicant : Sh. Srinivasan J Counsel for Respondent : M/s. V Balasubramani

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O R D E R

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This SA is filed challenging the Possession Notice dated 17.05.2022 issued by respondent financial institution under section 13(4) of SARFAESI Act, for recovery of a sum of Rs.45,77,453/- from applicants.

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Respondent bank had entered appearance and filed counter and typed set of documents evidencing the actions taken by them under the Act.

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Heard Ld. Counsel appearing for the respective parties. It is the case of applicants that they availed credit facility to the tune of Rs.42 lakhs from the respondent for business purpose by mortgaging first applicant’s residential dwelling property during the year 2019. Second applicant, who is wife of first applicant, stood as guarantor to the loan availed by first applicant. Applicants submit that they were regular in repayment of EMIs, but due to some unavoidable reasons and pandemic outbreak, their business was affected and hence they could not repay the loan dues, thus, resulting in default of repayment of installments and initiation of recovery measures by respondent financial institution. Applicants submit that respondent without following RBI guidelines had hurriedly classified the applicant’s account as NPA and had issued possession notice.

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Whereas Ld. Counsel for respondent institution submitted that availing of credit facility, execution of loan and security documents and default thus committed are all admitted by applicant. On account of default committed in repayment of loan

SA No.299/2022

18.10.2022

from third installment itself, respondent bank had classified the loan account as NPA on 24.03.2021 in accordance to RBI guidelines and issued Demand Notice under Section 13(2) of the Act on 03.04.2021 which was duly served to applicants. Even after expiry of statutory period, as applicant did not come forward to repay the dues nor raised any objection / sent representation to Section 13(2) notice, respondent bank issued Possession Notice dated 17.05.2022 under Section 13(4) of the Act, which was duly served, affixed and published in two newspapers as contemplated under the Act as evidenced from typed set of the documents filed along with counter.

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As there are no infirmities in the procedure adopted by the respondent bank while initiating action under the Act, present SA is devoid of merits and is liable to be dismissed.

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Accordingly, this SA stands dismissed, however without costs. 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 guidelines.

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me in Open Court, on this the 18^th day of October, 2022)

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

G Selvam v. The a O M s Fullerton India Home Finance Company Limited

Case brief

What is this about?

What did the court decide?

G Selvam v. The a O M s Fullerton India Home Finance Company Limited

Case brief

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What did the court decide?

What the court decided

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