Dismissed

Sarthchandrika v. Vastu Housing Finance Corporation Ltd.

DRT7 Oct 2025SA/17/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal at Hyderabad disposed of a Securitization Application filed by an applicant who challenged a possession notice issued under Section 13(4) of the SARFAESI Act. The Tribunal found no violation of procedural provisions and dismissed the application as the secured asset had been auctioned.

What did the court decide?

The Securitization Application was dismissed; interlocutory applications pending were closed; no order as to costs.

Sarthchandrika versus Vastu Housing Finance… — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY^{TRIBUNAL_ II AT HYDERABAD}

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DATED THIS THE OTTH^{DAY OF OCTOBER,2025}

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

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Securitization Application^{No.17OF 2023}

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Mrs. Sarath Chandrika Wo^{Prabhakar GoudP.} Aged about 36^{years,Occ:Business} R/o H. No.7-3- 130/3/A Old Kurnool^{Main Road, Kattedhan} Hyderabad

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.......Applicant.

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Versus

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Vastu Housing^{FinanceCorporation Limited} Reg. off. uniiNo.203^{&2O4,2'dFloor, A wing} Navabharath Estate,^{ZakariaBunderMarg} Road Sewn West,^Mumbai400015 Rep by its authorized^officer

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Vastu Housing^{FinanceCorporation Limited} o/o vijay sai^{Towers, Plot No.12-6-11} Flat No.4O2,^{4th Floor, opp BJP office} Vevek Nagar, Kukatpally,^{Hyderabad 500072} Rep by its authorized officer

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..,,Respondents,

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Counsel for the^APP|icant : Ms.G. Poornima^Rao

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Counsel for^Resqondent

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: Mr. G. Murali^Mohan

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-: Q-B-9-E-B:-

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The Applicant^filed the^{present Securitisation Applicationu/s 17} of the Securitization^{and Reconstruction of FinancialAssets and} Enforcement of Security^{InterestAct,2OO2(hereinafter referredto as} "the Act") to set aside^{the possessionnotice dated 30} '12'2022^under Sec.13(4) and action^{of respondentto take physical possession of the} application^{schedule property in pursuanceto Crl'MPNo'546/2o22on} the file of^{learned ChiefMetropolitan Magistrate,CIgerabad'} /,,\r'.2.5.) / / / .1'! u/

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PaSe 2 of3

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The case of the applicant, in brief, is that she "rj,i#,'J#':? Rs.34 lakhs from respondent and mortgaged application schedule property as security. Applicant could not pay ten EMIS due to Covid pandemic and loss of job. Without considering request for time to pay overdue amount, respondent declared the account as NpA and issued possession notice dated 30.72.2022 u/s 13(4) of the Act without serving demand notice u/s 13(2) and without withdrawing the earlier possession notice dated 71.0g.2022- possession notice has neither been published nor affixed thereby respondent failed to follow Rules 8(1) and 8(2) of the Security Interest (Enforcement) Rules, ZO02 ("Rules" hereinafter). Hence further action of taking physical possession is to be set aside.

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The respondent filed reply statement along with documents. The submissions, briefly, are that the account became NpA, Securitization proceedings have been initiated by issuing demand notice dated 19.05.2022 which was served by registered post. Possession notice dated 3O.t2.2022 was served, published on 04.07.2023 and affixed on secured asset. According to respondent, the secured asset was successfully sold in the auction conducted on 27.07.2024, The action of taking physical possession is not i egal. The SA is liable to be dismissed.

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Learned counsel for both parties stated that orders may be passed based on records. perused the material documents placed on record.

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The points for consideration are as follows : _ i) Whether. the appticant made out any valid around to quash the measures of the respondint iiitrisi-ii. sn schedule property, u, erryua foriq**,lu ii) To what relief? 7 -irr'-^'

Page 3 of3

sa No.1712023

Point No.(i)3

The appllcant admittedly^{availed loan of Rs.34 lakhsfromthe} respondent against mortgage on^{scheduleproperty as security and} committing default in^{payment of instalments. The respondent filed} documents along with^{reply statementas proof of serviceof demand} notice,^possession notice and^{publicationand affixture of possession} notice. I find no violation of^{Secs.13(2).13(4) of the Act and Rules} 8(1) and 8(2) of the^{Rules,2002. As per respondent,the application} schedule^property has been^{sold in the auction conductedon} 27.0L.2024.

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The respondent is entitled^{under Sec.14 of the Act, 2002 to} take action for^{physical possessionof the secured asset. I find no} illegality or irregularity in the^{action of the respondent againstthe} application schedule^{property underthe provisionsof the Act, 2002'}

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The applicant failed to^make out^{any valid ground to set aside} the measures of^{respondentunder Secs'13(2)and 13(4) of the Act} and the action to take^{physicalpossessionof the SA schedule} property. Accordlngly sA is liable to be^dismissed.

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Point No,(ii):

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In the result, the^{Securitization Applicationfails and is hereby} dismissed.

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Consequently, the^{InterlocutoryApplicationspending, if any,} shall stand closed.^{No order as to costs. Communicate a copy of this} order to the^{partlesconcernedand upload in the official website'}

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(Typed to ny dictotion by the P5, corrected,^{signed ohd prcnouncedby me in the opencourtonthis} the ol doy^{ofoctober,2025).}

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P-,+"' 'sfifrih KorHE) PRESIDING OFFICER

Sarthchandrika v. Vastu Housing Finance Corporation Ltd.

Case brief

What is this about?

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Sarthchandrika v. Vastu Housing Finance Corporation Ltd.

Case brief

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