Dismissed

Truhome Finance Ltd. v. Jana Small Finance Bank

DRT27 Aug 2025SA/175/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal dismissed a Special Appeal filed by the applicant as withdrawn after the appellant counsel submitted a Supreme Court judgment clarifying that statutory arbitration under Section 11 of the SARFAESI Act applies, rendering DRT jurisdiction inapplicable.

What did the court decide?

SA no. 17512025 dismissed as withdrawn. Registry directed to return original documents.

Truhome Finance Ltd. versus Jana Small Finance Bank — Specific Performance | DRT (2025)

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Debts RecoverY^{Tribunal-Il, Delhi}

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sA.lLTsl2o2s TRUHOTiE^{FINANCELTD VS JANA SMALL} FINANCE^BANK

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27.08.2025

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Item no. 07

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Present: Ms. Chandani^{Sadana, counselfor applicantFI'} Ms. Nirmit^{Bhalla, counselfor respondent bank'}

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Matter is^{takenthroughVideo Conferencing/ HybridMode'}

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IA no.205212}25^{has been filed by the applicant for} withdrawal^{of the} Present^SA'

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The^{Ld. Counselfor the applicant has submitted that during} the^{pendency of the SA, the Hon'ble Supreme Court passedan} authoritative^{judgment in Civil Appeal No' 7110 of 2025tided} as Bank of^{India Vs Sri NangliRice Mills h/t' Ltd' whereby the} Hon'ble Supreme^{courthas explicitlyclarifiedin Paragraph124} that-

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(I) Section 11 of^{the SARFAESIAct deals with resolution of} disputes^{relating to securitisa1'on,reconstuctionor non-} payment of any amount^{due betwen the bank or financial} institutionorassetreconsfu]Ctioncompanyorqualifidbuyer. (ID In order to attract^{the provisionof Srtion 11 of the} SARFAESI^{Act, twin conditionshave to be fulfilled being; first'} thedisputemustbebetweenanybankorfinancialinstitution or asset reanstruction^{company or qualified buyer and} secondly, the^{dispute must relate to ssuitistionor} r*onstruction or^{non-paymentof any amount due including} interest Where^{the aforesid two conditions are found to be} prima-facie stisfie4^{there the DRT will have no juriiliction} and the^{proper rtrouaewould onty be through ffiion 11 of} the SARFAESI^{Act read with the Act, 1996'}

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(IID The expression^{"non-paymentof any amountdue'} inctuding^interest" ud^{in Sttion ll;fthe SARFAESIAct is} alvl

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of wide^{import and woutdSpxiatLeavePetition (C) No' 16735} of 2022 Page^{97 of 98 include a uariousnnge of scenarios of} 'disputes'connected^{to unpaidamoun9 including tho* arising} due to thhd-party^{defaut\ such as indirxt defaulB of the} borrowerc.

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(V) Setion 11 of the^{%RFAESIAct, providesfor a satutory} arbitation^{for any dispute mentiond therein betwenany of} the^{partiesenumeratedthereunder.There is no need for an} expticit written^{agreement to arbitrate between suchparties in} order to^{attract Srtbn 11 of the %RFAESI Act' The said} provision creates a lqat^{fictionas rqardsthe existenceof an} arbitration agreement^{notwithstandingwhether such} agreement^{exists or not in actuality'}

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(V) kction 11 of^{the SARFAESIAd is mandatoryin nature'} The use of^{the word '9hatt" therei7 the mandateof the said} provision cannot be bypssed^{or subvertd by the parties by} seking rrcowre^elsewhere."

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In view of^{the ludgement of the Hon'ble Supreme Court'} the applicant^{seeks to withdrawthe presentSA'}

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In view^{of the above submissionmade by the Ld' Counsel} for the applicant,^{SA no.l75l2025 is dismissedas} withdrawn and^{Registryis directedto return the original} documents after^{keepingthe certified copies on record'} IA no.2o52l2o25^{along with pendingIAs, if any, disposed} of accordinglY.

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File be consigned^{to record room.}

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q)" (susHl L KU ltrAR RASTOGI) PRESIDING OFFICER DRT-II, Delhi

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Truhome Finance Ltd. v. Jana Small Finance Bank

Case brief

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Truhome Finance Ltd. v. Jana Small Finance Bank

Case brief

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