Allowed

Sri v. B Sreeram v State Bank of India

DRT21 Apr 2025SA/122/2024

Case brief

AI extract

What is this about?

Applicants challenged the bank's physical possession of schedule property via an application under Section 17 of the SARFAESI Act. Protecting the bank's absence, the court held the bank failed to prove compliance with the Act, quashing the recovery measures and allowing the application.

What did the court decide?

Proceedings initiated by the Respondent Bank for taking physical possession of the schedule property are quashed; Bank is at liberty to proceed afresh following the SARFAESI Act.

Sri v B Sreeram versus State Bank of India — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL _ I AT HYDERABAD

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DATED THIS THE 21ST DAY OF APRIL,2025

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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SA.No. 122/2024

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1.Mr.V.B. Sreeram, S/o V.S.S.Sastry, Occ:business, R/o H.No. 1-9-485/ 108, Lalithanagar, Adikmet, Vidyanagar, Hyderabad-500 044.

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Smt.VellalaSarada, W/o V.B. Sreeram, Occ:house wife, R/o H.No.1-9-485/ 108, Lalithanagar, Adikmet, Vidyanagar, Hyderabad-500 044

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... Applicants

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Versus

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State Bank of India, Rep. by its Authorized officer, Malakpct branch, Opp. Sahifa Mosque Azampura, I-lyderabad-500024.

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I-lyderabad-500024. ... Respondent Bank Counsel for the Applicants : Sn D. Raghauulu Respondent Bank : Exparte

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ORDER

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The Applicants filed the present Securitisation Application u/s.17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2oo2 (SARFAESI Act, 2oo2) challenging the action of the Respondent Bankfor taking physical possession of the schedule: ugh Advocate Commissioner vide Vacate Notice ant to the orders in Crl.M.P.N o.44212O2*' ffi the cMMI erabad and to set aside the same as illegal #* ".t, , IpR ?fr?s fu"%z*ro6d ,W

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sA L2212024

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The averments made in the application, in brief, are that, the Applicants availedhousing loan of Rs.14,25,000/- from the Respondent Bank and the same has been enhanced by Rs.1 lakh and the total loan sanctioned was Rs.15,25,000/- but due to health issues, could not pay some instalments. Challenging the sale notice dt.31 .o1.2o21 issued by the Bank, the Applicants earlier filed sA 20 12021 before this Hon'ble Tribunal and the said SA was dismissed by this Tribunal. All of a sudden,the Respondentbank is trying to take physical possession of the schedule property which is a residential house through advocate commissioner by obtaining orders from the cMM, Hyderabad in crl.M.p.No.442l2024, without following the due procedure. Hence the SA.

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The Respondent Bank called absent in spite of service of notice and there was no representation even after giving several opportunities and hence the Respondent Bank is set exparte.

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Heard Ld. Counsel for the Applicants.

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Now the points that arise for consideration is

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i) whether the Applicants haue established. any ualid grounds for setting aside the measures iruitiated bg the Respond.ent Bank for taking physical possession orfl the sA schedule propertg through Aduocatecommissioner pursuarut to the ord.ers in Crl.M.P.No.442/ 2024 on the file of CMM, Hgderabad?

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ii) To what relief?

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Point No.(il

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The Applicants filed the present sA challenging the proceedings initiated by the Respondent Bank under the SARFAEST Act,2oo2 against the application schedule property. But, the Respondent Bank w ho ho invoked ogTfu-q4Rf4PS{,.. -."ffie,-,-SaRFAB.SI op rocee cld in gp s ecrnaga in s,f st tf h c e scheduleqchertrrle property, fdf6df itB,ElfV th'eir'lagtiu., by filing Repty and produce

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necessary t,/&rriot d&L-ents ffiprove that the Respondent has ii^;, 4t ,.-\l ii-, 2 1 Apn ms

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sA122/2024

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strictly followed the provisions of SARFAESI Act and Rules framed thereunder in proceeding against the secured asset. The RespondentBank has not evinced any interest in contesting the matter even after giving several opportunities and failed to file their Reply and material documents to disprove the allegations of the Applicants. In the absence of any material evidence to show that the Respondenthas duly complied with the mandated provisions of SARFAESI Act and Rules, 2OO2 while proceeding against the secured asset for taking physical possession uls 14 of the Act, I hold that the Applicants have made a case for quashing the measures initiated by the Respondent against the SA schedule property under the provisions of the SARFAESI Act and Rules thereunder and as such, the SA is liable to be allowed.

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Point No.(ii):-

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In the result, sA 12212024 is ailowed. Accordingly, the impugned proceedings initiated by the Respondent Bank for taking physical possession of the schedule property through advocate commissioner vide Vacate notice dt.29.o2.2024 pursuant to the orders in cr1.M.P.No.442l2o24 on the file of cMM, Hyderabad are hereby quashed. However, the Respondent Bank is at liberty to proceed afresh against the SA schedule property to recover their dues by duly following the provisions of sARFAESI Act, 2oo2 and Rules made thereunder.'l'he lnterlocutory Applications, pending if any, shall stand disposed of. No order as to costs.

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communicate a copy of this order to the parties concerned.

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(Dictt rne"# .'.^'.-rt.,o

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te Secretary, transcribed by her, corrected., signed and pronounced bg the 21*dag of April,2025).

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sd/(c. coPrcHANDl PRESIDING OFFICER

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nufr

Sri v. B Sreeram v State Bank of India

Case brief

What is this about?

What did the court decide?

Sri v. B Sreeram v State Bank of India

Case brief

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What did the court decide?

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