Allowed

K Vigneshwari v. Punjab National Bank

DRT27 Mar 2024SA/514/2023

Case brief

AI extract

What is this about?

The applicant challenged a sale notice under SARFAESI. The respondent bank suspended the action and withdrew Section 14 proceedings due to regularization but retained future rights. The Tribunal allowed the application, noting objections against the bank should have been raised from the demand notice stage.

What did the court decide?

SARFAESI challenge application allowed without costs; interim orders vacated; pending IAs closed.

K Vigneshwari versus Punjab National Bank — Contract and Commercial Disputes | DRT (2024)

SA No.514 of 2023

27.03.2024

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 27^th day of March, 2024

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

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SARFAESI APPLICATION No.514 of 2023

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Ms. K. Vigneshwari, No.5, Akbarabad First Street, Flat No.5, 2^nd Floor, Kodambakkam, Chennai- 600 024.

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….Applicant

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-Vs-

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The Authorized Officer, Punjab National Bank, Circle Sastra Centre, Second Floor, Spencer Plaza, 769, Chennai-600 002. …Respondent

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Counsels on record / appeared:

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Counsel for Applicant : M/s. A. Arokia Satheesh Counsel for Respondent : M/s. Rahul Jain

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ORDER

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This SA is filed challenging the Sale Notice dated 07.09.2023 issued by the respondent bank scheduling sale to 10.10.2023 recovery of a sum of Rs.30,72,749.65p.

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Heard Ld. counsel appearing for both the parties. Ld. counsel for respondent has filed a Memo stating therein that they are suspending their SARFAESI action taken vide E-auction sale notice dated 07.09.2023 and also withdraws the Section 14 proceedings initiated against the applicant before Ld. CJM, in view of applicant regularising their loan account. Respondent bank has retained their right to initiate SARFAESI auction in the event of default by the borrower in future.

SA No.514 of 2023

27.03.2024

Whereas, the Ld. counsel for applicant submits that withdrawal of SARFAESI auctions by respondent bank should be right from the issuance of demand notice itself and not from the impugned sale notice stage.

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In the circumstances, objections of the Ld. counsel for applicant is recorded herein and it is kept open for applicant to raise the said objections from the demand notice stage if respondent bank chooses to initiate action only from sale notice stage.

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In the result, this SA is allowed, however without costs. Interim order, if any granted and subsisting till this day stands vacated and all other IAs, if any pending stands closed.

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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 27^th day of March, 2024)

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Sd/(GANAPATHI K.R.K) PRESIDING OFFICER

K Vigneshwari v. Punjab National Bank

Case brief

What is this about?

What did the court decide?

K Vigneshwari v. Punjab National 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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