The Debts Recovery Tribunal dismissed the applicant's special appeal challenging the initiation of recovery measures under Section 14 of the SARFAESI Act. The court found no infirmities in the respondent's procedure and held the appeal devoid of merits.
The special appeal is dismissed without cost.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
SA No.363/2022
15.12.2022
1
IN THE DEBTS RECOVERY TRIBUNAL – III, CHENNAI
Dated this the 15th day of December, 2022
Present: Shri Ganapathi K.R.K. Presiding Officer
S.A. No.363 of 2022
Sh. M. Sadiq Ali S/o Mohammed Ahifa No.3/181, Mettu Street Singaperumal Koil Chengalpattu – 603 204 ….Applicant
– Vs. –
The Authorised Officer, REPCO Home Finance Limited No.1 E, VNA Complex First Floor Gandeeban Vedachalam Street Chengalpattu – 603 001 ….Respondent
| Counsels on record / appeared: | |
|---|---|
| Counsel for Applicant | : M/s. D. Durairaj |
| Counsel for Respondent | : M/s. A. Ilangovan |
O R D E R
set of documents evidencing the action taken by them under the Act.
SA No.363/2022
2
15.12.2022
and Term Loan to the tune of Rs.15 lakhs on 23.03.2019 from respondent. However, it is the case of applicant that respondent did not disburse the entire amount sanctioned, but had deducted a sum of Rs.2,05,000/- towards fee and charges, contrary to the terms and conditions. It is the further case of applicant that though applicant was regular in repayment of installments, due to sudden lockdown on account of Pandemic Covid-19 and business loss, applicant could not repay the EMIs within time, resulting in classification of loan account as NPA by respondent. Respondent initiated action under SARFAESI and issued Demand Notice dated 22.06.2022 claiming a sum of Rs.49,09,977/- and Rs.15,88,004/- without taking into account the sum of Rs.20 lakhs remitted by applicant. Thereafter, respondent had issued Possession Notice followed by Section 14 application before Ld. CJM for taking physical possession of the property without following due process of law. .
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15.12.2022
subsequently dismissed on 12.05.2022 as withdrawn by applicant. Respondent proceeded further and issued Sale Notice dated 20.12.2021 scheduling sale to 04.02.2022, however the said sale did not take place for want of bidders. Thereafter, respondent bank approached Ld. CJM for taking physical possession of the property.
pending stand closed.
guidelines.
(Dictated to PS, transcribed by her, corrected, signed and pronounced by me in Open Court, on this the 15th day of December, 2022)
Sd/- (GANAPATHI K.R.K) PRESIDING OFFICER
1 issue framed by the court
Whether the sale action requisition order passed under Section 14 of SARFAESI Act by the Ld. Chief Judicial Magistrate, Chengalpattu, was lawful and sustainable.
1 provisions across 1 enactments
Sh. M. Sadiq Ali
The Authorised Officer, REPCO Home Finance Limited
GANAPATHI K.R.K
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
