Allowed

C Chitra and E Sasikala v. Edelweiss Asset Reconstruction Company Limited

DRT1 Apr 2025SA/269/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed a Securitization Application challenging a possession notice issued under the SARFAESI Act. The court allowed the application as the secured creditor withdrew both the demand and possession notices. Liberty was granted to the creditor to initiate fresh proceedings after impleading the legal heirs of the deceased co-borrower.

What did the court decide?

The Securitization Application was allowed as the notices were withdrawn; liberty granted to the respondent to take fresh action after obtaining particulars of the legal heirs of the deceased co-borro

C Chitra and E Sasikala versus Edelweiss Asset Reconstruction… — Banking and Recovery | DRT (2025)

SA No.269/2024

01.04.2025

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 01^st day of April, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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S.A. No.269 of 2024

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Mrs. Chitra C W/o Mr. Viswanathan No.1/286, Mogappair West Mogappair, Chennai – 600 037

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Mrs. Sasikala E W/o Mr. Enbarasu D 1/213, Mogappair West Mogappair, Chennai – 600 037 ….Applicants

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-Vs-

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M/s Edelweiss Asset Reconstruction Company Limited Represented by its Authorised Officer Edelweiss House, Off CST Road, Kalina, Mumbai – 400 098

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Balamurugan No.1/286, Mogappair West Mogappair, Thiruvallur Tamilnadu - 600037 …..Respondents Counsels on record / appeared: Counsel for Applicant : Sh. K.C. Krishnamoorthy Counsel for 1^st Respondent : M/s S.K. Mariyappan

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: - ORDER ON SA NO.269 OF 2024- :

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The present Securitization Application [SA] is filed on 15.05.2024

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under sub section [1] of S.17 of the Securitization And Reconstruction of Financial Asset and Enforcement of Security Interest Act,2002 (for short

SA No.269/2024

01.04.2025

the ‘Act’) challenging the action and the measure taken by the secured creditor under the Security Interest Enforcement Rules, 2002 [for short the Rules].

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This S.A. is filed challenging the Possession Notice dated 04.04.2024 issued by the respondent FI for recovery of a sum of Rs.1,45,27,723.39p.

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Today a memo is filed on behalf of 1^st respondent FI submitting therein that the above SA was filed by applicants challenging the Possession Notice dated 04.04.2024 issued by the respondent FI. It is the case of applicants in SA that they are the legal heirs of deceased Mallika, who is the Co-borrower and who had availed loan along with one C. Balamurugan & M/s Triangles. Due to default in repayment, the loan account was classified as NPA on 05.09.2020. Thereafter, the said loan account was assigned by M/s L & T Housing Finance Limited to the present respondent FI herein. Subsequently, 1^st respondent had issued Demand Notice dated 04.12.2023 under Section 13(2) of SARFAESI Act even after which the borrowers had not paid the outstanding amount. Hence the 1^st defendant had taken possession of the schedule property vide Possession Notice dated 04.04.2024, which was challenged in the present SA.

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It is submitted that 1^st respondent FI had initiated SARFAESI proceedings against the Mallika, who died on 09.05.2023. The demise of the said co-borrower was not informed to the 1^st respondent and hence 1^st

SA No.269/2024

01.04.2025

respondent FI had issued notice to the co-borrower Mallika also. Further, neither the applicants nor the other borrowers have intimated the death of said Mallika. The demise of said Mallika is prior to the issuance of Demand Notice dated 04.12.2023 under Section 13(2) by the respondent FI. Hence the 1^st respondent FI is willing to withdraw the Demand Notice dated 04.12.2023 as well as Possession Notice dated 04.04.2024. It is therefore prayed that liberty be granted to respondent FI to initiate fresh action against the applicants, who are all the legal heirs of the deceased Mallika and pass necessary orders.

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Heard counsel for applicant and respondent FI and perused the records.

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Memo filed on behalf of 1^st Respondent FI is taken on record.

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As 1^st Respondent FI is withdrawing its Demand Notice dated 04.12.2023 and Possession Notice dated 04.04.2024, nothing survives for adjudication in this SA.

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Accordingly, SA stands allowed, as statutory demand notice and possession notice are withdrawn by the Respondent FI. However, liberty be with Respondent FI to initiate action afresh after impleading the legal heirs of the deceased co-borrower, for which applicants are directed to furnish the particulars of LRs to the Respondent FI within ten days from the date of receipt of this order.

SA No.269/2024

01.04.2025