The Debts Recovery Tribunal dismissed a Securitization Application alleging violation of RBI guidelines regarding non-placement of MSME matters before a designated committee. The court held that the applicants could not raise this plea at a late stage of proceedings.
The Securitization Application was dismissed with no merit found.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
SA/426/2024
DEBTS RECOVERY TRIBUNAL-II, CHANDIGARH
SA/426/2024 SHIVSHAKTI AUTOMATES AND ANOTHER Vs BANK OF INDIA
07.08.2025 ITEM NO.22
Argued by: Mr. Ashok Kumar Khubbar Advocate for the Applicants (SA) Mr. Jatinder Kumar Sharma Advocate for the Respondent Bank
M/s Shivshakti Automates and another (Applicants) have filed this Securitization Application under Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), against Bank of India (Respondents).
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SA/426/2024
DEBTS RECOVERY TRIBUNAL-II, CHANDIGARH
the Applicants were routing the transactions through the ICICI Bank. Bank has also alleged that the rejections along with CIBIL report was sent to the Applicants vide E-mails dated 25.06.2020, 27.07.2020 and vide letters dated 31.07.2020, 02.11.2020 and 22.11.2020. The account of the Applicants was categorized NPA a number of times. Applicants did not file the objections to the notice under Section 13(2) of the Act within time. Accordingly, it is stated that there is no merit in the SA and the same be dismissed.
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SA/426/2024
DEBTS RECOVERY TRIBUNAL-II, CHANDIGARH
Petition (Civil) No.684 of 2025 decided on 28.07.2025 has laid down that the MSME should be vigilant and follow the procedure laid down under the said framework by producing authenticated and verifiable material to show its eligibility to get the benefit of the said circular. Counsel submitted that despite the fact that it was brought to the notice of the Applicants that they were not eligible for restructuring, yet they did not take any action in the matter. Accordingly, there is not merit in the SA and the same be dismissed.
A copy of this Final Order be furnished to all the parties free of cost.
Pronounced in the open Tribunal (A.S. Narang) Dated: 07.08.2025 Presiding Officer ANJ DRT-2, Chandigarh (Additional Charge)
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2 issues framed by the court
Whether the Applicants can raise a plea about non-compliance with RBI guidelines for MSME units as a bar to SARFAESI action at this late stage.
Whether the defect time-bar applies to the Securitization Application filed under Section 17 of the SARFAESI Act.
Colour shows how this judgement treated each authority
Shri Shri Swami Samarth Construction & Finance Solution & Anr. Vs The Board of Directors of NKGSB CO-OP. Bank Ltd. & Ors.Distinguished¶18
Shri Shri Swami Samarth Construction & Finance Solution & Anr. Vs The Board of Directors of NKGSB CO-OP. Bank Ltd. & Ors.
2 provisions across 2 enactments
Shivshakti Automates and Another
Bank of India
ANJ
A.S. Narang
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
