Dismissed

P Usha v. Idbi Bank

DRT14 Feb 2024SA/483/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Chennai, dismissed a SARFAESI application challenging a sale notice. The court permitted the bank to obtain a fresh valuation report. Parties concurred to rescind the sale in favor of a negotiated settlement, finding no procedural infirmities. The application was disposed of accordingly.

What did the court decide?

Liberty granted to respondent bank to obtain fresh valuation and share it for a negotiated settlement within a specific time frame; SA dismissed.

P Usha versus Idbi Bank — Specific Performance | DRT (2024)

SA No.483 of 2023

14.02.2024

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 14^th day of February, 2024

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Present: Shri Ganapathi K.R.K. Presiding Officer

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SARFAESI APPLICATION No.483 of 2023

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Mrs. P. Usha W/o. Mr. R. Parthiban No.39, Habibullah Salai, T. Nagar, Chennai – 600 018.

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Mr. R. Parthiban S/o. Mr. Rishikesavan No.39, Habibullah Salai, T. Nagar, Chennai – 600 018.

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Mr. R. P. Rajarajan, S/o. R. Parthiban No.39, Habibullah Salai, T. Nagar, Chennai – 600 018. ….Applicants - Vs-

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M/s. IDBI Bank Limited, Registered Office at IDBI Tower WTC Complex, Cuffe Parade Mumbai – 400 005

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And its RBG Regional Office At P.M. Towers, First Floor of No.37, Greams Road, Chennai – 600 006.

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And also Zonal Office at No.115, Anna Salai, Saidapet, Chennai – 600 015 ….R espondent

SA No.483 of 2023

14.02.2024

Counsels on record / appeared:

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Counsel for Applicant : M/s. Ananda Gomathy Counsel for Respondent : Sh. P.L. Narayanan, Senior counsel for M/s. E. Hariharan

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ORDER

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This S.A is filed challenging the sale notice dated 31.08.2023 issued by respondent bank scheduling sale to 29.09.2023, for recovery of a sum of Rs. 36,37,37,087/-.

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Heard Ld. Counsel appearing for applicant and Ld. senior counsel Sh. P.L. Narayanan for respondent bank.

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It is the case of applicant that the property contemplated to be sold in the impugned sale notice was valued very low and that it would fetch a higher price if appropriate valuation could be made. It is the case of applicants that they have a prospective buyer, who is interested to purchase the property and if respondent bank provides with a fresh valuation, reflecting the present market value, they shall approach respondent bank with the purchaser to enter into a private treaty and conclude the same within specific time frame. Ld. Counsel submits that the present impugned sale notice has become infructuous as no sale had taken place and prayed for appropriate orders there upon.

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Whereas respondent bank had put up appearance and filed their counter and typed set of documents evidencing their actions. It is the case of respondent bank that

SA No.483 of 2023

14.02.2024

they have followed the procedure as envisaged under the Act and that there are no infirmities in the procedure adopted while issuing the impugned notice. Ld. senior counsel for respondent bank submits that applicant may be at liberty to approach respondent bank for any amicable settlement of their dues but however option should be kept open with the respondent bank to proceed further in accordance to law for recovery of money if applicants do not approach respondent bank within a reasonable time. after furnishing them with the fresh valuation report. Ld. senior counsel further submitted that respondent bank shall not have any objection for sharing the valuation report with the applicants and bank will be open to enter into any negotiated settlement if there is a prospective purchaser, as it saves both time and expenditure for the bank. Submitting so Ld. Senior counsel prayed for appropriate orders..

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In the circumstances as applicants intended to approach respondent bank for discharge of their debt, respondent bank is permitted to obtain fresh valuation report of the property and share the same with the applicants so as to enable them to approach respondent bank with a prospective purchaser, for conclusion of sale in favour of the purchaser and for recovery of the sale proceeds being made available to respondent bank for closure of their loan account, for which the impugned sale notice is issued, all to be concluded within specific time frame as mutually acceptable between the parties. Liberty is with respondent bank to proceed further in accordance to law if applicants do not conclude upon their proposals within reasonable time, after furnishing of the fresh valuation report.

SA No.483 of 2023

14.02.2024

Both the Ld. Counsels appearing for the respective parties have conceded on the above submissions and stated that an order may be passed in line with the same and also accepted for disposal of the present S.A.

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In the result, SA stands dismissed, as parties intend to rescind on a negotiated settlement between themselves and further that applicants could not make out any infirmities in the procedure adopted by the respondent bank while issuing the impugned notice.

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Interim order, if any granted and subsisting till this date stands vacated all other IAs if any pending stands closed.

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With the above directions S.A is disposed.

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A copy of the order be communicated to the parties concerned as per extant guidelines.

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me in Open Court, on this the 14^th day of February, 2024)

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Sd/-

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(GANAPATHI K.R.K) PRESIDING OFFICER

P Usha v. Idbi Bank

Case brief

What is this about?

What did the court decide?

P Usha v. Idbi Bank

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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