The Debt Recovery Tribunal dismissed the Sarafais application filed by loan applicants challenging the bank's sale notice. The court found no infirmities in the bank's procedure of issuing demand and possession notices, holding the appeal devoid of merits.
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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S.A.No.282 of 2022 29.11.2023
IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 29th day of November, 2023
Present: Shri Ganapathi K.R.K. Presiding Officer
SARFAESI APPLICATION No. 282 of 2022
1. Mr.Rituraj
S/o Bhawarlal Vaishnav Prop. of M/s. Sree Krishna Sweets 15/5, Palliappan Street, Sowcarpet Chennai – 600 001
2. Mr. K.Bhawarlal S/o. Kishthurdass No.22B, Indira Nagar 4th Street Vinayagapuram, Puthagaram Kolathur Chennai – 600 099 ….Applicants
Vs
The Authorized Officer M/s. Tamilnad Mercantile Bank Ltd Aminjikarai Branch No.650, Poonamallee High Road, Aminjikarai Chennai – 600 029 ….Respondent
Counsels on record / appeared:
Counsel for Applicants : M/s. N.Moorthi Counsel for Respondent : M/s. E.Kumar
ORDER
respondent bank scheduling to sale on 20.06.2022, for recovery of a sum of Rs.50,06,379.72p
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S.A.No.282 of 2022 29.11.2023
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S.A.No.282 of 2022 29.11.2023
requests, as applicants did not come forward to repay the dues, respondent bank had classified the loan account as NPA on 30.08.2021. Respondent bank issued Demand Notice under Section 13(2) of SARFAESI Act dated 08.11.2021 which was returned unserved. Hence respondent bank had personally delivered the demand notice to 2nd applicant herein on 23.11.2021, which is evident from the endorsement made by 2nd applicant in the said notice. The said demand notice was also published in two leading newspapers (Dinamani and The New Indian Express) on 05.12.2021. As applicants did not come forward to clear the dues even after expiry of statutory period, respondent bank issued Possession Notice dated 17.02.2022 which was returned unserved, affixed in the conspicuous place of the secured asset and published on 17.02.2022 in two leading newspapers (Dinakaran and The New Indian Express) as warranted under law.
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S.A.No.282 of 2022 29.11.2023
dated 30.04.2022 and even otherwise as no sale has taken place on the scheduled date, the present SA is devoid of merits and is liable to be dismissed.
(Dictated to Steno (DD), transcribed by her, corrected, signed and pronounced by me in Open Court, on this the 29th day of November, 2023)
Sd/-
(GANAPATHI K.R.K) PRESIDING OFFICER
2 issues framed by the court
Whether the sale notice issued by the bank under the SARFAESI Act was in conformity with the statutory procedure.
Whether the applicants could establish any tenable infirmity in the procedure adopted by the respondent bank.
1 provisions across 1 enactments
Mr. Rituraj
Mr. K. Bhawarlal
The Authorized Officer
Ganapathi K.R.K
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
