In a Securitization Application under Section 17 of the SARFAESI Act, the tribunal dismissed the plea as time-barred because the High Court was approached after the statutory period for availing the right to object had expired, finding no grounds for stay.
The Securitization Application was dismissed as it was time-barred; no stay was granted.
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DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
SA/451/2024 VAIBHAV BHANDARI AND ORS. Vs AXIS BANK LTD. AND ORS.
22.11.2024 Item No.13
Present: Sh. N.K. Banka, Counsel for the Applicants.
Sh. Rahul Garg, Counsel for respondent bank.
Mr. Garg, has put in appearance on behalf of the respondent bank.
Vaibhav Bhandari and others (Applicants) have 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 Axis Bank Ltd. and others (Respondent).
Axis Bank had granted Home Loan facility to the applicants in the year 2018 and 2020. Since, the applicants did not make the payment, on 27.06.2022 bank issued the notice under Section 13(2) demanding a sum of Rs.28,89,164/-. It was also informed to the applicants that their account has been declared NPA as on 11th April, 2021. Applicants did not submit any objections and on 21st December, 2023, bank issued the notice under Section 13(4), which was followed by the order by D.M. on 26.04.2024. The Tehsildar, pasted the notice on the property on 16th August, 2024. Applicants approached the Hon’ble High Court and filed CWP No.28449/2024, which vide order dated 21.10.2024 dismissed the same with the following observation:-
“Counsel for petitioner is unable to point out any exceptional or extra ordinary circumstance which calls for interference by this Court at this stage. All pleas and arguments as raised qua proceedings under SARFAESI Act initiated against petitioner being unjustified, illegal or arbitrary are very well within the realm of consideration by the appropriate Forum/Tribunal under Act”.
DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
On 14.11.2024, applicants filed the present SA. Counsel for the applicants states that the bank had granted him moratorium which was from 21st October 2021, to June, 2022. However, he has not placed on the record any letter by the bank which stated so specifically.
Mr. Garg, counsel for the respondent bank states that though the notice by the Tehsildar was affixed on 16th August, 2024, Applicants approached the Hon’ble High Court on 19.10.2024 and by that time the limitation to avail the opportunity under the SARFAESI Act had already expired.
In view of this, I am of the considered view that no ground is made for stay and SA being time-barred is dismissed .
File be consigned to record room after due compliance.
(A S Narang) Presiding Officer Pronounced in open Court DRT-I, Chandigarh 22.11.2024 PANKAJ
2 issues framed by the court
Whether the Securitization Application was time-barred at the time the applicants approached the High Court.
Whether any exceptional circumstances exist for interfering with the SARFAESI proceedings initiated by the bank.
Vaibhav Bhandari and ors.
Axis Bank Ltd. and ors.
A S Narang
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
