In a securitization application under the SARFAESI Act, the Debts Recovery Tribunal dismissed the applicant's challenge to the bank's possession action, observing that notices were served, the account was declared NPA, and the security interest was registered.
The Securitization Application under Section 17 of the SARFAESI Act was dismissed.
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DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
SA/7/2023 NARINDER SINGH Vs THE KANGRA CENTRAL CO-BANK LIMITED
18.03.2024 Item No.100
Present: Sh. Ashutosh Bajpai, Counsel for the Applicant. Sh.Anil Kumar Sharma, Counsel for respondent bank
Narinder Singh (Applicant) has filed this Securitization Application under Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), against the Authorized Officer, The Kangra Central Cooperative Bank Limited (Respondent).
Admittedly, on 03.09.2016, applicant had availed some credit facilities to the tune of Rs.20 lacs from the respondent bank. To secure the loan, he had created the security interest of the house and also executed the additional mortgage-deed dated 19.07.2016, in favour of the bank. Applicant could not make the repayment of the loan, the bank initiated the SARFAESI proceedings. Applicant, in the SA, has challenged the SARFAESI action initiated by the bank. Applicant has alleged that no notice of declaring the account NPA was ever served upon him. Notice under Section 13(2) was never issued and served upon the applicant and also not published in the newspapers; it was not affixed on the property; security interest has not been registered with the Central registry. On these facts, applicant filed the present SA.
Bank, in the reply, has denied the case of the applicant. It alleged that the notices were duly served upon the applicant. It alleged that notice was issued to the applicant on 06.10.2017; 01.12.2017 and 15.01.2018 and legal notice was also issued to the applicant on 04.06.2018. The account of the applicant declared NPA on 31.08.2017. On 05.11.2020 the officer of the bank visited the residence of the applicant, who admitted his default in the repayment and handed over Rs.200/- to the bank official, which were deposited in the loan account of the applicant. It is alleged that there is no merit in the present SA and the same be dismissed.
I have heard Mr.Ashutosh Bajpai, counsel for the applicant and Mr.Anil Sharma, counsel for the respondent bank.
Bank has produced on the record copy of possession notice dated 23.11.2021, which was received by the applicant; copy of CERSAI registration and statement of account, which states that applicant has deposited only Rs.1,15,300/- in the loan account from 2016 to 2024. Bank has already taken the possession and also affixed the notice on the secured asset. I am of the considered view that there is no merit in the present SA. The same is hereby dismissed . All the pending IAs, if any, are also disposed of, accordingly. Thereafter, file be consigned to record room after due compliance.
(A S Narang) Presiding Officer Pronounced in open court. DRT-I, Chandigarh MANOJ
1 issue framed by the court
Whether the applicant's Securitization Application under Section 17 of the SARFAESI Act challenging the bank's proceedings has merit.
2 provisions across 1 enactments
Narinder Singh
The Kangra Central Cooperative Bank Limited
A S Narang
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
