Dismissed

Ms Lakshmi Bham Bham Baba Medical and General Sores v. State Bank of India

DRT21 Aug 2025SA/112/2024

Case brief

AI extract

What is this about?

In a securitisation application filed under section 17 of the SARFAESI Act, 2002, the applicant challenged the dismissal of their plea to set aside a possession notice. The court dismissed the application, holding that the bank had proved due service of notices.

What did the court decide?

The securitisation application is dismissed; no order as to costs.

Ms Lakshmi Bham Bham Baba Medical and General Sores versus… — Company and Corporate | DRT (2025)

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IN THE^{DEBTSRECOVERYTRIBUNAL- II} AT HYDERABAD

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DATED^{THIS THE TWENTYFIRST DAY OF AUGUST'2025}

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PRESENT: SH.^{MMESHWARKOTHE' B'Com'' L LB' (Hons')'M A'} PRESIDING OFFICER

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SECURITISATION^{APPLICATION NO' 112 OF 2024}

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Betwe	en:
1.	M/s.Lakshmi^{Bham BhamBaba-} Medicaland^{General Stores} RePbY^{itsPro?rietor} Smt.V^LakshmiDevi w/oVella^{boYanaKrishna} Aoedabout⁴⁰Years iNo.a/tza,^{NearRTcBusStand} Kambadur,^{AnanthaPUram Dist'}
2.	SriVellaboYana^Krishna C/oV.^Bhimrao Agedabout⁴⁸Years occuDation:^Business H.N;.8/178,^{NearRTC BusStand} Kambadur,^{AnanthapuramDist} '""'^Applicants'
And
Stat Kam Anan Rep	eBank^ofIndia badur^Branch thaPu^{ramDist.5 1 5 765'} .byits^{AuthorisedOfficer'} .....ResPondent.
	Counselfor^{theApplicants: Mr'D Raghavulu'} Counselfor^{the Respondent: Mr'G'Prabhakar Sarma} i :.- ,*'

sA LL2/2O24

-:ORDER:-

The Applicant filed the present Securitisation Application u/s.17 of the Securitization and f Enforcement "r^{r*r.,,r r,1""t""1:H ::J} ;:::;}:::ff:: to aS^..SARFAESI Act 2OI ) assairing the possession notice dated 30.01.2024 ,rrruo or, y the respondent bank against the sA schedure property.

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The case of the applicar )t, in brief, is that respondent bank sanctioned a cc loan of Rs 10 lakhs in the year 2019 and a GECL roan of Rs.2 rakhs .n Yeat 2O2O ' The loans are secured by the sA schedule o.or".tn" .: co m m itted d era u r t i n r" r}",,"'"i ;:::';: "i:.^ffi ::fl:il ; requested the respondent t lank to regularise the loan account by accepting the overdue proceeded with NpA .,uar,r, 'nttu''"ntt'^{However'respondent} ilregary. The respondent bank faired to serve the ournurtut'on notice as prescribed ,no"lo^{'o''t" as well as the possession} the SARFAESI Act and the Rules, 2002. Jnstead, responden' noticedurins,n"r"no,,",,ol"roil:.'ff ::,:,:"T:[::::ilJ Respondent has failed to affix the possession notice and publishing the same in ne Ru,es 8(1) and 8(2) """ ff[::;r;: T:]":::l:'T',fl property were not given in fl above irreeurariti.,n" o*J"".ll',':.'ffi::::' r"',::H:""

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The respondent bank filed reply statement denying violation of the procedure laid under the SARFAESI Act and the Rules thereunder in serving the demand notice and the possession on the applicant by placing relevant material in support of its

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,/ay;orq /l/^t-'

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sA LL2|2O24

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pleadings. The l't^{Applicantis the borrowerand 2nd applicantis} the^{guarantor/mortgagorto the loan' Due to irregularitiesin} repayment of^{loan, failure in submitting stock statementsand} financial data^{from time to time, the loan accounthas been} classified as NPA^{on 01.06.2023in accordance with RBI} guidelines. The SA is^{filed on false and frivolous grounds'}

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Learned counsel^{for the applicants prayed that orders may be} passed based on records.^{Heard learned counsel for the} respondent bank.^{Perusedthe written argumentsfiled by the} respondent bank^{and the materialplaced on record'}

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5.Learnedcounselfortheapplicant,whilereiteratingthepleadings in the SA,^{prayed for allowing the SA by setting aside the} possession notice dated 07^.L0.2023.

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Now the^points that^{arise for adjudicationare: -}

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i) llhether the ApPlicant^{made out} any valid^ground for^quashingthe possession notice dated^{30.0l -2024} issued under section^{13(4) of} Securitisation Act?

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i, To what reliefl

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Point No.(i):

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The^prinicipal contention^{of the applicantsis that the respondent} bank has not followed^{due procedure in serving the demand} notice and the^{possessionnotice. In response, respondentbank} filed^photostat copy of^{demandnotice dated28.LL.2023,} possession notice dated 30.01.2024,^{postalregistrationreceipts} and statement showing^{signature of recipients/tfack report of} firvr."* (l/''l;s't"

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sA Lt2/ 2024

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consignment evidencing service of the said notices vide pages 1 to 16 of the material papers annexed to the reply statement. The respondent bank also placed photograph showing afflxture of possession notice on the secured asset and its publication in Sakshi and Hansi India dailies dated 05.02.2024 vide materiat papers at pages 17 to 21 annexed to the reply statement. Applicant has not disputed these documents. Accordingly, applicants failed to make out any valid ground to set aside;he possession notice dated 30.0I.2024. Hence, the SA is devoid of any merit and liable to be dismissed.

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Point No.(ii):

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In the result, the SA fails and is hereby dismissed.

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ConsequenHy, Interlocutory Applications pending if any, shall stand closed. No order as to costs.

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Communicate a copy of this order to the parties concerned and upload in Web Site.

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(Dictoted to the Steno, signed ond orcno u t aoy o7 nugusT m;s.j^{' e -- -'t.Pt u'Pnced by ne in the opencoutton thisthe 21st}

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PRES]DING OFFICER

Ms Lakshmi Bham Bham Baba Medical and General Sores v. State Bank of India

Case brief

What is this about?

What did the court decide?

Ms Lakshmi Bham Bham Baba Medical and General Sores v. State Bank of India

Case brief

What is this about?

What did the court decide?

What the court decided

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