The Debts Recovery Tribunal dismissed an application challenging a possession notice under the SARFAESI Act. The court held that the respondent financial institution followed statutory procedures by issuing a demand notice, publishing it in newspapers, and affixing it to the property. Consequently, the applicant's claim was rejected.
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 * 1 AT HYDERABAD
DATED THISTHE IgTH DAY OF AUGUST, 2024
PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER
sA.No.227,/2022
Suman Kumar Kotra S/o KotraVenkateswarlu, Aged 37 years, Occ:business, R/o H.No. 16-14, Erragadda, Nallavelli Road, Nagarkurnool village & Mandal, Nagarkurnool district-509209.
... Applicant
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Counsel for the Applicant Counsel for Respondents No.1&2
: Si V.V. Ramana
: Sri P. Ramachandran
ORDER
sA227 /2022
The Applicantavailed credit facilities to a tune of Rs.15 lakhs on 27.O5.2O17 andthereafter a loan of Rs.35 lakhs on 21.01.2019 from the 2nd Respondent and created equitable mortgage in respect of the schedule property as security towards the repayment of the above loan facilities. Due to COVID pandemic in the year 2O2O, th.e Applicant could not repay the instalments and so, the 1st Respondent issued Possession notice dt.08.08.2022 without following the procedure laid down under the provisions of SARFAESI Act and Rules, 2002. No demand notice is issued to the Applicant and that the said possession notice is not published in two daily newspapers and it is also not affixed on the schedule property and so the said possession notice is bad in iaw. Hence the SA.
sA 227 12022
Point lVo.(il:-
During the courseof arguments, Ld' Counselfor the Applicant and Ld' CounselfortheRespondentsreiteratedtheirrespectiveversionsasstated supra.
necessarymaterialdocuments SA. Asper the said clear that thel "tRespondent 3(2) of the SARFAESIAct
has issuedDemand no the entire outstanding
cailing uPonthe APP said noticeand the
dues within60 daYs 'f;'.,,* dapfr{.Eqeiptt denced bY the Postal
said noticewas rece 6{ by theAPPlicant# .\ ,ojl !r;l-ots:*-
sA 227 /2022
acknowledgements filed by the Respondents. It is not the case of the Applicant that subsequent to the demand notice, he paid any amounts to the Respondents. so the lstRespondent issued possession notice dt.08.o8.2o22 under Rule 8(1) of securit5r Interest (Enforcement) Rules, 2002 for taking possession of the schedule property and the said notice was sent to the Applicant and others through Regd. post and it was duly served on the Applicant as evidenced by the postal acknowledgements as filed by the Respondents. The said notice was also published in Nava Telangana and Indian Mail daily newspapers dt.O4.O8.2O22 and copy of the said notice was also affixed on the schedule property as depicted in the photographs filed by the Respondents. Hence in the circumstances, it is quite clear that the Respondents have scrupulously followed the procedure laid down under the provisions of SARFAESI Act and Rules, 2002 in issuing demand notice and possession noticeto the Applicant. So, the Applicant has failed to establish any ground for setting aside the proceedings initiated by the Respondents under the SARFAESI Act,2OO2 against the schedule property.Accordingly, this point is answered in favour of the Respondentsand against the Applicant.
Potnt No,(tl)r
In the result, SA 22T 12022 is dismissed. Consequently, the Interlocutory Applications, pending if any, shall stand disposed of. No order as to costs.
transcribed bg Ler, corrected, signed and pronounced. bg me in the open daA of Auwst, 2024).
sd/_ (G. GOPr CHANDI PRESIDING OFFICER
2 issues framed by the court
Whether the applicant established valid grounds for setting aside the possession notice dated 08.08.2022.
Applicability of the statutory procedure for issuing demand and possession notices under the SARFAESI Act.
2 provisions across 2 enactments
Suman Kumar Kotra
M/s Sriram City Union Finance Ltd.
Gummandi Gopichand
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
