In SARFAESI SA No. 228 of 2023, the Debts Recovery Tribunal dismissed the applicant's challenge to the sale of mortgaged property by the bank. The court found that the bank followed due procedure and that the applicant's claims regarding notice service and loan history lacked merit.
SARFAESI Application No. 228 of 2023 dismissed without costs; interim orders stayed.
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.
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SA No. 228 of 2023
14.11.2023
IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 14th day of November, 2023
Present: Shri Ganapathi K.R.K. Presiding Officer
SARFAESI APPLICATION No. 228 of 2023
Mrs.P.Gomathi W/o Mr.Prem Martin No.3331, Santha Saraswathi Nagar Ammanapakkam Kancheepuram – 603 002 ….Applicant
Vs.
Authorised Officer Axis Bank Ltd 2nd Floor Door No.31, Old No.14, South Mada Street Mylapore Chennai – 600 004
….Respondent
Counsels on record / appeared:
Counsel for Applicant : M/s. M.D.Thirunavukarasu & K.P.Mohan Balaji Counsel for Respondent : M/s. Kvp.Deepak Raj
ORDER
notice dated 06.01.2023 for recovery of a sum of Rs.33,45,694/-.
possession notice were served upon applicant by the respondent bank, even according to its own counter averments and further that no proof of service has been filed in their
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SA No. 228 of 2023
14.11.2023
counter and typed set of documents. Ld.Counsel also submitted that applicant has been paying and respondent has been acknowledging payment up to 71st instalment and therefore the date of declaring the account as an NPA or the subsequent actions by the respondent bank under SARFAESI are ill-founded and does not survive the test of law. Ld.Counsel has demonstrated that respondent bank has averred in their counter that notices sent were neither returned nor any endorsement was made for service or nonservice of the said covers which concludes that respondent bank has not followed the procedure as warranted under law, while causing service of notices on the applicant and therefore the actions of the respondent bank under SARFAESI are not in accordance to law. Ld.Counsel for applicant further submitted that applicant has borrowed a housing loan from respondent bank in a sum of Rs.19.28 Lakhs repayable in 168 months. It is also submitted that account came to be declared as an NPA on 20.07.2017 and demand notice came to be issued on 28.08.2017 followed by possession notice on 28.11.2017. It is submitted that pursuant to orders under Sec.14, physical possession of the property is duly taken on 22.12.2020. Applicant submits that sale notice dated 06.01.2023 is issued scheduling sale to 13.02.2023 on which date the sale is concluded and that applicant has challenged the said action of sale through this SA. Ld.Counsel for applicant admits that applicant has not remitted any amounts to the credit of his loan account even after approaching this Tribunal and much less any compliance of any interim order. It is borne on record that applicant had remitted costs on dismissal of urgent and stay petition for not establishing their bonafides.
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SA No. 228 of 2023
14.11.2023
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SA No. 228 of 2023
14.11.2023
has also been handed over to the Auction purchaser and therefore submits that nothing survives in the present matter. It is also submitted that the loan availed is a Loan Against Property and not housing loan as being canvassed.
(Dictated to Steno (DD), transcribed by her, corrected, signed and pronounced by me in Open Court, on this the 14th day of November, 2023)
Sd/- (GANAPATHI K.R.K) PRESIDING OFFICER
3 issues framed by the court
Whether the applicant made sufficient infirmities in the procedure adopted under SARFAESI Act to warrant relief from the sale.
Whether the applicant's claim regarding the status of loan as housing loan and remittance of loans is tenable.
Whether the respondent bank followed the procedure as warranted under law in declaring the account as NPA and enforcing security.
1 provisions across 1 enactments
Mrs.P.Gomathi
Authorised Officer, Axis Bank Ltd
GANAPATHI K.R.K
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
