Dismissed

Baiju D B v. Catholic Syrian Bank Limited

DRT14 Feb 2024SA/308/2023

Case brief

AI extract

What is this about?

The Tribunal dismissed a Securitisation Application seeking to quash Section 13(2) notice, NPA classification, and an order for possession under Section 14 of the SARFAESI Act. It held the notices were validly served, the NPA classification properly followed the law, and no infirmity existed in the possession order.

What did the court decide?

The Application for Securitisation seeking to quash notices and the order for possession was dismissed. No costs to any party.

Baiju D B versus Catholic Syrian Bank Limited — Execution and Attachment | DRT (2024)

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL - 1 AT ERNAKULAM

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DATED THIS 14^th DAY OF FEBRUARY, 2024

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PRESENT: Su. WILLYAHM, B.Sc., M.L. [DISTRICT JUDGE - Retd] PRESIDING OFFICER

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S.A No. 308 of 2023

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Between

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Baiju D.B., S/o. Balan,

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Devaswam Parambil House,

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Paliyamthuruth, Pizhala P.O., Chittoor, Ernakulam-682027.

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Lija Baiju, W/o. Baiju D.B.,

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Devaswam Parambil House,

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Paliyamthuruth, Pizhala P.O.,

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Chittoor, Ernakulam-682027.

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--- Applicants

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And

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The Authorised Officer, The CSB Bank Ltd., Formerly known as The Catholic Syrian Bank Ltd., Banerji Road Branch, Ernakulam.

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--- Defendant

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This Securitization Application coming on 17.01.2024 for final hearing before me in the presence of Mr. A.G. Tissarant, Advocate for the Applicants and Mr. C.A. Joy, Advocate for the defendant and upon hearing arguments of learned Counsels for both the parties and upon perusing the material on records, this Tribunal delivered the following:

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SA No.308 of 2023

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O R D E R

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This Securitisation Application was filed on 13.06.2023 seeking to pass an order quashing Annexure-A1 notice and A3 order of the Chief Judicial Magistrate Court, Ernakulam dated 12.05.2023 and Annexure-A4 notice dated 02.06.2023 issued by the Advocate Commissioner to take possession of the application schedule property and all proceedings initiated under the SARFAESI Act, 2002 as against the application schedule property.

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Availment of credit facility from the defendant bank upon creation equitable mortgage over the applicants’ immovable property situated in Re. Sy. No.222/3 of Kadamakkudy village, Kanayannoor Taluk, Ernakulam District, in favour of the defendant bank and default in repayment of the outstanding loan due is admitted by the applicants.

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A perusal of Annexure-A1 Demand Notice shows that since the applicants defaulted in repayment of the outstanding loan due, their loan account came to be classified as NPA on 01.05.2019. The applicants have averred in the SA that the demand notice was not served on them and that no prior notice was issued to them before classification of the loan account as NPA. Annexure-B1, copy of postal receipt and copy of postal acknowledgement card produced by the defendant shows that Annexure-A1 Demand Notice was served on the applicants. The provisions of Section 13(2) of the SARFAESI Act, 2002 does not contemplate issuance of prior notice to the borrowers before classification of loan account as NPA.

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The defendant filed petition and affidavit, Annexure-A2 before the Chief Judicial Magistrate Court, Ernakulam under Section 14 of the SARFAESI Act, 2002. Annexure-A3 Order came to be passed in M.C. No.14/2023 appointing Advocate Commissioner who issued notice, Annexure-A4 to the applicants informing them that he would take physical possession of the secured asset.

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The applicants have not averred in the SA as to whether the details as contemplated under the provisions (i) to (ix) to the provisions of Section 14 of the SARFAESI Act, 2002 was not furnished by the defendant in the affidavit filed in MC No.14/2023. It is also not the contention applicants that Annexure-A3 Order passed in MC No.14/2023 is not in consonance with the mandatory requirements of the above said provisions of Section 14 of the SARFAESI Act, 2002. In Annexure-A2 affidavit and petition, the details such as availment of

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Page 2 of 5

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SA No.308 of 2023

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credit facility by the applicants from the defendant bank upon creation of security interest over the immovable property, default in repayment of the outstanding loan due and classification of loan account as NPA, issuance of Demand Notice to the applicants and receipt of the same, failure to respond to the terms of the Demand Notice or to send any objection/representation to the Demand Notice, description of properties with boundaries are furnished. A perusal of Annexure-A3 Order passed in MC No.14/2023 shows that the learned Additional Chief Judicial Magistrate (MPs/MLAs), Ernakulam after having perused the contents of the affidavit and the documents and having satisfied over the same, passed Order appointing Advocate Commissioner to take physical possession of the secured asset. This Tribunal does not find any infirmity or flaw in the above Order.

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The applicants have miserably failed to prove their case as to how they are entitled to get the reliefs sought for in the SA. In view of the foregoing reasons and discussions, this Tribunal holds that the applicants are not entitled to get the reliefs sought for in this SA.

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In the result, S.A No.308 of 2023 stands dismissed. No costs.

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Dictated to Steno, taken down, transcribed, typed by him, corrected and pronounced by me in the open court on this the 14^th day of February, 2024.

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(Su. WILLYAHM) PRESIDING OFFICER

Mj/

Page 3 of 5

SA No.308 of 2023

S C H E D U L E

District : Ernakulam Taluk : Kanayannur Village : Kadamakkudi Re. Sy. No. : 222/3 Extent : 2.55 Ares

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Description

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2.55 Ares of land comprised in Re. Sy. No.222/3 situated at Kadamakkudy village, Kanayannoor Taluk, Ernakulam District with a residential building and all improvements therein.

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Boundaries

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East : Property of Konnulliparambil Kunjamma Joseph North : Panchayath Road. West : Property of Vadakkad Sasi and Kudumbi community South : Property of Sasi.

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Page 4 of 5

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SA No.308 of 2023

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List of documents filed by the Applicants along with the S.A.

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Sl. No.	Date	Particulars
1.	---	True copy ofSection 13(2)notice.	Annexure-A1
2.	----	True copy of MC No.14/2023	Annexure-A2
3.	---	True copy of the order of the CJM in MC No.14/2023.	Annexure-A3
4.	02.06.2023	Original of Advocate Commissioner notice	Annexure-A4

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List of documents filed by the defendant along with the written statement

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Sl. No.	Date	Particulars
1.	----	Postal receipt with A/d card the receipt of 13(2) notice applicants.	showing by the	Annexure-B1
2.	06.02.2023	True copy of the Possession postal receipt, acknowledgeme paper publications with photograph.	Notice, nt card, affixture	Annexure-B2

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(Su. WILLYAHM) PRESIDING OFFICER

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Mj/

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Page 5 of 5

Baiju D B v. Catholic Syrian Bank Limited

Case brief

What is this about?

What did the court decide?

Baiju D B v. Catholic Syrian Bank Limited

Case brief

What is this about?

What did the court decide?

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