Allowed

Sri Mohmmed Hamed Ali v. State Bank of India

DRT6 May 2024SA/432/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the Securitisation Application filed by mortgagees challenging the possession notice issued by State Bank of India. The court set aside the notice due to the bank's failure to follow due process and procedural requirements under the SARFAESI Act, 2002, in the absence of proof to the contrary.

What did the court decide?

The Securitisation Application is allowed by setting aside the Possession Notice dated 23.11.2023 issued u/s. 13(4) of the SARFAESI Act, 2002.

Sri Mohmmed Hamed Ali versus State Bank of India — Execution and Attachment | DRT (2024)

¶1

IN THE DEBTS RECOVERYTRIBUNAL-I AT HYDERABAD DATED THrs rHE 6rH DAY oF MAY, 2024

¶2

PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

¶3

SA.No.432 of 2O23

¶4

Between:

¶5

Sri Mohammed Hamed Ali, Male, S/o Sri Mohammed Mahboob Ali, aged 49 years, occ: business, R/o H.No. 1B-7 -l9B/ A/ 126, Aman Nagar B, Moghalpura, Talabkatta, Hyderabad - 500 002.

¶6

Sri Mohammed Mukarram All, Male, S/o Sri Mohammed Mahboob Ali, aged 49 years, occ: business, R/o H.No. 18-7 -LgB/ A/ 126, Aman Nagar B, Moghalpura, Talabkatta, Hyderabad - 500 002.

¶7

Applicants

¶8

VERSUS

¶9

State Bank of India, Represented by its authorised officer, RACPC, Gunfoundry, Mazzanine Floor, Gunfoundry branch, Gunfoundry, Hyderabad - 500 001.

¶10

Respondent

¶11

Cou nsel for the Parties:

¶12

Counsel for Applicant

Respondent

{l ! r{AY 2[24

(sA.432 of 2023)

ORDER

The applicant filed Securitisation Application under Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, ZOO2 challenging the Possession notice dated 23.rr.2023 under SARFAESI Act and without following the rures, provisions, regulations and procedures as prescribed under SARFAESI Act.

¶18

The case in brief is that appricants herein are the owners and possessors of application schedule property and mortgagors / borrowers availed housing loan. The applicant was regular in repaying the instarments but due to some unforeseen probrems, the applicant could not pay some EMIs, hence the respondent bank proceeded further and issued possession notice for rearisation of a sum of Rs.43,69,090/-. It is submitted that the respondent bank faired to foilow the due process of raw and issued the possession notice regarding schedule property of application which is illegal and arbitrary and in violation of SARFAESI Act and rules made thereunder' It is contended that the issuance of demand notice under section 13(2) of the rther proceedings without following due process or,$i The respondent bank 23.11.2023 which

¶19

(SA.a32 of 2023)

¶20

is mandatory as per Section 13(4) and Rule 8(1) and (2) of the Rules. The respondent bank also failed to affix the possession notice at the conspicuous place of the property and also failed to publish in two leading newspapers and thereby not followed the procedure prescribed under Rule B(1) and (2). Hence prayed to set aside all the measures initiated by respondent bank under SARFAESI Act,2002.

¶21

The respondent bank called absent and set exparte.

¶22

Heard the arguments of Applicant Counsel.

¶23

Now the point for consideration is

¶24

Whether the applicant has made valid ground for quashing the SARFAESI proceedings and the measures initiated by the respondent bank against the schedule property under the provisions of SARFAESI Act,

¶25

As stated supra, the Respondent Bank remained ex-parte. In the absence of any proof with respect to the following of due procedure as contemplated under the SARFAESI Act, 2002 and the Rules made thereunder while enforcing the security interest over the application schedule property by the Respondent Bank, the present Securitisation Application by setting aside the issued by Respondent Bank 05u/i-liw

¶26

(SA.432 of 20231

¶27

u/s.13(4) oF the SARFAESI Act, 2002 against the application schedule property.

¶28

In the result, the present Securitisation Application is allowed by setting aside the Possession Notice dt.23.11.2023 issued u/s.13(a) of the SARFAESI Act, 2002, by the Respondent Bank against the application schedule property.

¶29