Debts Recovery Tribunal allowed an application under Section 17(t) of the SARFAESI Act to set aside a possession notice. The Tagledi that the notice was not served, affixed, or published, and the property was agricultural land exempt under Section 31(i).
Possession notice dated 01.02.2022 issued under Section 13(4) of the SARFAESI Act set aside.
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.
IN THE DEBTS RECOVERY TRIBUNAL-II AT HYDEMBAD
DATED THIS THE 13TH DAY OF DECEMBER 2022
PRESENT: SH. RAMESHWAR KOTHE, B.Com, L.LB. (Hons.), M.A. PRESIDING OFFICER
SA. No. 52OF 2022
Between:
Nr"r._
SA.No.319/2019
R/o 1-2-212/G Wrajabagh Behind Gagan Mahal Domalguda Secundrabad-29.
........Applicants.
Versus Citi Union Bank Limited Credit Recovery and Management Department Branch Office, Ground Floor No.5-2-183 and 184 Modi Square Boats Club X Road Junction Secunderabad-500003 - Rep by its authorised officer.
........Respondent.
Counsel for the Applicant : Mr. T. Vijay Kumar. No representation for Respondent. Ex Farlr
-:ORDER:.
?Y',*
SA.No.319/2019
Applicants paid Rs.45 lakhs and Rs.6.7 crores against Rs.B.5 crores under OTS. Respondent bank failed to reply to the objections raised against demand notice and published possession notice dated 07.02.2022. The loan account has been classified as NPA contrary to RBI circulars. The possession notice has not been served on the applicants/mortgagors. The possession notice has not been affixed on the secured asset. The secured asset is agrlcultural land and hence it is exempted u/s 31(i) of the SARFAESI Act. In view of the above infirmities, applicant prays for quashing of possession notice dated 01.02.2022, in the interest of justice.
/ // -"rt'
L./
SA.No.319/2019
4
newspapers. Theproperties being agriculturallandsthe same are exempted from the securitisationproceedingsu/s 31(i) of the SARFAESI Act. He further contends thathis case is exempted under theprovisions of section 31(j) ofthe SARFAESIAct. Since the respondent bank remained exparte, noproof is availableon record as to compliance ofprovisions ofrules 8(1)and 8(2) of Security Interest(Enforcement) Rules,2002 in serving,affixing andpublishing thepossessionnotice and accordingly the present securitisation application deserves tobe allowed setting aside the possession notice dated 01.02.2022 issued by the respondent bank u/s 13(4) of the SARFAESI Act,2002 against the application scheduleproperties.
//%n
ESHWAR KOTHE) PRESIDING OFFICER
3 issues framed by the court
Whether the possession notice issued under Section 13(4) of the SARFAESI Act can be quashed for non-service, non-affixing, and non-publication.
Whether agricultural land falling under the applicants is exempt under Section 31(i) of the SARFAESI Act.
Whether lack of proof regarding compliance with rules 8(1) and 8(2) warrants setting aside the notice exparte.
5 provisions across 2 enactments
M/s. Namdhari Steels
Citi Union Bank Limited
Rameshwar Kothé
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
