Disposed

Sree Maaselha Enterprises v. Bank of India

DRT4 Feb 2025SA/172/2022

Case brief

AI extract

What is this about?

The DRT-III Chennai disposed of two SARFAESI applications involving a property auction dispute based on a compromise where the borrower agreed to hand over possession and receive Rs.50 lakhs as settlement.

What did the court decide?

Settlement of both SARFAESI applications through a compromise agreed upon by the applicant and the auction purchaser, resulting in disposal of the petitions.

Sree Maaselha Enterprises versus Bank of India — Banking and Recovery | DRT (2025)

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SAs 172/2022 & 590/2024 (C)

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04.02.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 04^th day of February, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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SARFAESI APPLICATION No.172 of 2022

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SARFAESI APPLICATION No.590 of 2024

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M/s. Sree Maaselha Enterprises, Rep by its Proprietor M.Sivakumar,

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D. No. 80, Arcot Main Road,

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Valasaravakkam,

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Chennai – 600 087.

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Mr. Sivakumar, S/o. Masilamani, No. 54, Thiruvalluvar Street, Valasaravakkam,

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Chennai – 600 087.

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Mrs. Nirmal Devi, W/o. Mr. Sivakumar, No. 54, Thiruvalluvar Street, Valasaravakkam, Chennai – 600 087. ….Applicants - Vs-

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The Authorized Officer, Bank of India, Asset Recovery Branch, Star House, 4^th Floor No. 30, (Old No. 17) Erabalu Street, Chennai – 600 001. ….Respondent Bank (in both SAs)

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Sh. V. Rajkumar S/o Vijayakumar Davidson 278, Sherik Madhar Street Gandhinagar Pettai Tirunelveli – 627 008 ….2^nd Respondent / Auction purchaser (in SA No.590/2024)

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SAs 172/2022 & 590/2024 (C)

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04.02.2025

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Counsels on record / appeared:

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Counsel for Applicants : M/s C. M. Mohanasundaram Counsel for 1^st Respondent bank : M/s S.R. Sudanraj Counsel for 2^nd respondent : M/s A. Periyasamy (auction purchaser)

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COMMON ORDER

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SA 172/2022 is filed by the borrower impugning the Sale Notice dated 08.03.2022 and for directing the bank to pay compensation, costs and damages as contemplated under Section 19 of SARFAESI Act. SA No.590/2024 is filed by the borrower challenging the order of Ld. CJM in Crl. M.P. No.7158 of 2022 dated 23.08.2024, pending disposal of the SA.

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The bank has filed detailed counter and typed set of documents, countering all the contentions raised by the applicant in the SA.

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However, it is seen from the records that the sale was conducted and the auction purchaser is also made as a party in the SA No.590/2024, as second respondent. The second respondent and the applicant, the borrower have entered into a compromise wherein the applicant has agreed to withdraw the SA No.172/2022 challenging the Sale Notice dated 08.03.2022 and SA No.590/2024 challenging the Section 14 order by Ld. CJM dated 23.08.2024.

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In the memo of compromise filed by Respondent No.2, it is seen that the applicant has agreed to hand over possession of the SA schedule property i.e., Entire land and building situated at No.80, Arcot Road, Valasarawakkam, Chennai – 600 087 to the 2^nd respondent / auction

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SAs 172/2022 & 590/2024 (C)

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04.02.2025

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purchaser and the auction purchaser is entitled to collect arrears of rent from the date of purchase i.e., 01.04.2022 from the tenants namely Union Bank of India and Muthoot Finance as well as future rent by entering into a fresh lease on mutually agreeable terms and conditions amongst themselves.

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The applicant has received a sum of Rs.50 lakhs from second respondent as full and final settlement of all its claim towards compensation being the expenses incurred for evicting tenants and litigations. Further, the applicant had also agreed that the second respondent / auction purchaser shall take possession of the property pursuant to the sale conducted by the first respondent bank by virtue of the sale certificate dated 31.03.2022. Further, it is agreed that the applicant nor his successors in interest shall have any right or claim over the subject property.

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The memo filed by second respondent i.e., auction purchaser is dated 20.12.2024 and the applicant has signed consenting for the memo of compromise along with seal of the firm and the same is also signed by the second respondent / auction purchaser’s counsel.

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Though the memo was filed on 20.12.2024, the applicant had not put up appearance on the last date of hearing.

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Today the applicant’s counsel was present and submits that compromise is not entered with by him, which is contrary to the signature of the applicant, which is affixed along with seal of the applicant firm Sree Maaselha Enterprises.

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SAs 172/2022 & 590/2024 (C)

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04.02.2025

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Memo of compromise filed by the applicant and second respondent is taken on record.

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As the matter is settled under compromise, nothing survives in the SAs for any further adjudication. The applicant being the borrower, has himself come forward to hand over the property to the auction purchaser and also authorized him to collect rents from the date of purchase i.e., 01.04.2022. The second respondent / auction purchaser is represented by Power of Attorney holder and the POA is filed in both the cases SA No.172/22 and SA No.590/2024. It is seen from the records that SA No.590/24 is filed by applicant challenging the Section 14 order. As the possession is being handed over by the applicant himself to the auction purchaser, nothing survives in the SA.

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The power of attorney filed by second respondent is admitted by the counsel.

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Counsel appearing for applicant, first respondent bank and second respondent / auction purchaser have endorsed the same admitting the compromise, as per the memo of compromise, filed by them and have also endorsed in the proceedings sheet.

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Accordingly, both the SAs 172/22 and.590/2024 stands disposed in terms of the memo of compromise filed by the applicant and the auction purchaser / second respondent herein. The memo of compromise dated 20.12.2024 shall form part of this order.

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SAs 172/2022 & 590/2024 (C)

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04.02.2025

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Original of this order be retained in SA No.172/2022 and a copy be kept in SA No.590/202.

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A copy of this order be communicated to the parties concerned.

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 04^th day

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of February, 2025)

Sree Maaselha Enterprises v. Bank of India

Case brief

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Sree Maaselha Enterprises v. Bank of India

Case brief

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