Applicants challenged a sale notice issued under SARFAESI Act. The Tribunal found the bank failed to prove service of demand, possession, or sale notices. The impugned sale notice was set aside and pending sales vacated.
Impugned sale notice set aside; any concluded sale set aside; bank directed not to debit SARFAESI expenses; SA allowed; all other IAs closed.
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. 536 of 2022 09.05.2023
IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 09th day of May, 2023
Present: Shri Ganapathi K.R.K. Presiding Officer
SARFAESI APPLICATION No. 536 of 2022
1. M.S.K. Rameshraj
S/o. Shri Kumaraswamy Door No.188, Dr.Ambedkar Street Vallur Village and post, Ponneri Taluk Tiruvallur District
2. R.Kokila
W/o M.S.K.Rameshraj Door No.188, Dr.Ambedkar Street Vallur Village and post, Ponneri Taluk Tiruvallur District
3. R.Srinivasan
S/o Shri Kumaraswamy Door No.188, Dr.Ambedkar Street Vallur Village and post, Ponneri Taluk Tiruvallur District ….Applicants Vs.
1. Indian Overseas Bank
Rep. by its Assistant General Manager Asset Recovery Management Branch Ground Floor, Central Office Building, 763, Anna Salai Chennai – 600 002
2. The Authorised Officer
Indian Overseas Bank Asset Recovery Management Branch Ground Floor, Central Office Building, 763, Anna Salai Chennai – 600 002
3. Senior Manager
Indian Overseas Bank Hi-Tech Agro Branch No.69, First Floor Sir Theyagaraya Road
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S.A. 536 of 2022 09.05.2023
T.Nagar Chennai – 600 017 ….Respondents
Counsels on record / appeared:
Counsel for Applicants : M/s. R.Sethu Maruvarasi, R.Balaraman & V.Bharath Kumar Counsel for Respondents : M/s. P.H.Vinodh Pandian, Mr.T.Aravind Raj, Mr.Jaswin Ratnasekar & Mr.John Noel Koilpillai
ORDER
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S.A. 536 of 2022 09.05.2023
then multiple sale notices to bring the mortgaged property to sale. However as no sale could be held, the impugned sale notice has also become infructuous. Ld.Counsel for applicants submits that applicants had approached respondent bank, twice with their proposals for a negotiated settlement through OTS which was also accepted to and conceded by the respondent bank. As applicants could not muster funds within the time granted by respondent bank, both the OTS proposals failed. Ld.Counsel submits that respondent bank had levied interest at their own will and wish and it is not explained as to how an OA filed in 2016 claiming a sum of Rs.14.56 crores has swelled to Rs.28.85 crores in 2022 sale notice, when the loan is predominantly an agricultural loan, repayable in half-yearly instalments. Ld.Counsel reiterates that the contractual obligations between the parties is only for discharge of the loan in half-yearly instalments, but it appears that respondent bank has converted it into monthly rests and compounded interest on interest. Ld.Counsel submits that respondent bank has not furnished the correct statement of account reflecting the amounts remitted intermittently while seeking for an OTS in a sum of Rs.61 Lakhs and Rs.22 Lakhs in addition to further sums deposited with the respondent bank. It is the case of applicants that the service of demand notice or the subsequent possession notice or the sale notices, were made, in accordance to the provisions of the act and therefore respondent bank had willfully violated the provisions of the act.
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S.A. 536 of 2022 09.05.2023
procedure while issuing multiple sale notices, all of their attempts have become infructuous for want of bidders and so prayed for appropriate orders.
Sd/-
(GANAPATHI K.R.K) PRESIDING OFFICER
2 issues framed by the court
Whether the Respondent Bank established valid service of mandatory requisition notices.
Whether the sale notice can be sustained when evidence of notice service is absent.
1 provisions across 1 enactments
M.S.K. Rameshraj
R. Kokila
R. Srinivasan
Indian Overseas Bank
Ganapathi K.R.K
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
