Dismissed

Ms Echo Energies v. Idbi Bank

DRT6 Nov 2025SA/49/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal (Special Recovery Tribunal) I at Hyderabad dismissed an application filed under Section 17 of the SARFAESI Act, 2002, challenging the bank's steps to take physical possession of secured property via an advocate commissioner under Section 14, upholding the bank's compliance with statutory notice requirements.

What did the court decide?

The application under Section 17 of the SARFAESI Act, 2002 was dismissed as there were no merits.

Ms Echo Energies versus Idbi Bank — Banking and Recovery | DRT (2025)

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iru Tue DEBTS RECoVERYTRIBUNAL- I AT HYDERABAD

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DATED THIS THE 4TH DAY OF NOVEMBER, 2025

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PRESENT: GUMMADI GOPICHAND, PRESIDING OFFICER

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sA.No.49,/2c24

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M/s Echo Energies Rep. by its Managing partner Sri Palusa Kartheek Goud, S/o P.Venkaiah Goud, aged 38 years, Occ:business, R/o H.No. 14-S- 135, Sri Balaji Enclave, Christanpally, H/o Mahabubnagr village & Mandal, Mahabubnagar District.

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... Applicant

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And

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IDBI Bank Ltd. Zonal Offrce, R5-9-89/ 1&2, Chapel road, Hyderabad-SOO 001. Rep. by its Authorized oflicer

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... Respondent

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Counsel for the Applicant Sri D.Raghauulu Counsel for tle Respondent Si K.P. Saradhi

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Reserved on #i5==.\ :29.09.2O25 : O4.1 1.2025 :06.1 1.2025 ... ,;

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This application is Iiled by the Appricant u/s. 17 of the SARFAESI Act, 2002, challenging the steps .initiated by the Respondent for taking physical possession of the schedule property through Advocate commissioner pursuant to the orders of Ld.CJM, Mahabubnagar in Crl.M.P.No. 18 /2023 and to declare the same as illegal and void.

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The averments made in the application, in brief, are that:

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The Appticant is a^{partnershipfirm and availed Over Draft facility of} Rs.25 lakhs from the^{Respondent by creating mortgage in respect of} the schedule property.^{Due to Covid-19,the Applicant could not pay} some instalments^{and so, the Respondentinitiatedproceedingsunder} the SARFAESI^{Act, 2OO2. The Respondentwithout issuingdemand} notice and possession^{notice to the Applicant, straightaway, initiated} proceedings for taking^{physicalpossession of the schedule property} under Section 14 of the^{SARFAESI Act,2OO2 by filing Crl.M'P'No'18/23} on the file of Ld.CJM,^{Mahabubnagarfor appointment of advocate} commissioner. The impugned^{possession notice was not affixed on the} schedule^property and^{not publishedin two leading newspapers as} prescribed under the^provisions of^{SARFAESIAct r/w Rule 8(1)(2)of} Rules,2O02.The advocate^{commissionerappointedby the Ld'CJM,} Mahabubnagar visited^{the scheduleproperty and issued notice} dt.lg .O1.2024 to the^{Applicant for vacatingthe schedule propert5r'The} Applicant is ready^{to clear the dues if some time is given'Hence the} SA.

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The Respondent filed their^{Reply denying all the adverse allegations} made in the sA and^{contendedthat the Applicant is a partnership firm} which availed overdraft^{facility from the Respondent by creating} mortgage in respect of^{the schedulepropert5r. After availing loan from} the Respondent, the^{Applicant committeddefault in repaying the loan} dues and so, the^{loan account was classified as NPA on 26 'O4} '2022^as per the guidelines of RBI.^{The Respondent issued demand notice} dt.2T.OT.2O22totheApplicantandtheApplicantreceivedthesaid notice. Thereafter, the^{Respondent issued possessionnotice} dt.24.O3.2923-:Qq.d^{the said notice was published in two leading} .' " .':i ".:I-'^"^{-, .' -}^'.. , newp+lii.bqs:.-ili3fso:affixed^{on the scheduleproperty'Thus the} .t^{..,</sup> ': .^{' :.' .} ngi'$,t"tt lgi i"ltdggq^{the procedure contemplated underthe} J}i"io.," or-ShnreB'$'h,,^{zooz and Rules made thereunder in} {i$i,"*0o6rriltt'a24p,i".*iid^{possessionnotice to the Applicant'} 'iiheieafter, the nespond&t filed Cr1.M.P.No.l8l23^{for appointment of} )

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advocate commissioner on the file of td.CJM, Mahabubnagar u/s¹⁴ of the SARFAESI Act, 2OO2 for taking^{physicalpossession} of^the schedule property and the advocate commissioner^appointed by^the td.CJM, Mahabubnagar issued notice dt. 19.01.2024^{to the Applicant} to vacate the schedule^property. Thus, all^the steps^{initiated by the} Respondent for taking^{physical possession of the schedule property} are as per the^{procedure prescribedunder the provisionsof SARFAESI} Act,2OO2 and Rules made thereudner.^{Accordingly,the Respondent} prayed to dismiss the SA.

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Heard Ld. Counsel for the Applicant^{and Ld. Counselfor the} Respondent and^{perused the materialbrought on record.}

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Now the points that arise^{for considerationare}

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i. talrcther tle Appticant has^{establisled any ualid grounds} for challenging tle steps initiated^{bg the Respondent} for^{taking phgsical} possession of the scladule^{propertg througha.duocate commissioner?}

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ii. To what relief^?

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Point IVo.(i):-

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During the course^{of arguments, Ld. counsel for the Applicant and Ld.} counsel for the Respondent^{reiteratedtheir respectiveversions as stated} supra.

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There is no dispute r-egarding^{the fact that the Applicantavailed loanfrom} mortgage in respect of the^{scheduleproperty} loan and thereafter,^{the Applicant committed} dues and the loan account^{was classified as}

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The specific contention of^{the Applicantis that without serving demand} notice and possession notice^{to the Applicant and without complying with} Rule 8(1)&(2) of Security Interest^{(Enforcement)Rules 2002, the} Respondent straightaway, initiated^{proceedingsfor takingphysical} possession of the schedule^{propertythroughadvocatecommissioner u/s} 14 of the SARFAESI Act,^{2OO2and so, the said proceedings are not legal} and valid.

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g. per contra, Respondent contended that they have duly followed^the procedure laid down under the^{provisions of SARFAESIAct, 2002and} Rules made thereunder^{in issuing all the statutory notices to the Applicant} and also in initiating^{stepsfor taking physical possession of the schedule} property /s 14 ofthe SARFAESI^Act'2OO2.

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In order to substantiate^{their contention,the Respondentenclosedrelevant} material documents^{alongwith the Reply filed by them'As per the said} material documents,^{it is clear that the Respondentissued demand notice} dt.27.o7.2o22 u/s^{13(2)of the SARFAESI Act, 2oO2and sent the said}

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notice to the Applicant^{personally and the Applicantreceived the said} notice as evidenced^{by his signatureon the copy of the saidnotice Iiledby} the Respondent.^{Thereafter,the Respondentissuedpossessionnotice} dt.24.03.2)23u/s13( )oftheAct,2OO2totheApplicant'Thesaid

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possession notice was^{published in Teluguand English daily newspapers} as evidenced by^{the copies of paper publication Iiled by the Respondent} and the said notice^{was alsoaffixed on the scheduleproperty as depicted} in the copies of^{photographs filed by the Respondent'Thusthe Respondent} has duly 8(1)&(2) of Security^{Interest(Enforcement) Rules,} 2002 i notice to the APPlicant. 76: l,P

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14 ofSARFAESI^{Act, 2002, after issuance} of the SARFAESI^{Act, 2OO2,th'e secured}

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the concerned District^{Magistrate or Chief} 4

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Judicial Magistrate for taking physical possession of the secured asset. In the instant case, after issuing demand notice and possession notice to the Applicant, the Respondent being secured creditor, approached Ld.CJM, Mahabubnagar u/s 14 of the SARFAESI Act, 2OO2 by frling Crl.M.P.No.18 /23 for appointment of advocate commissioner for taking physical possession of the schedule property. Ld.CJM, Mahabubnagar after considering the material on record, appointed advocate commissioner and the said advocate commissioner visited the schedule property and issued notice dt. 19.01.2024 to the Applicant for vacating the schedule property. So the steps initiated by the Respondent for taking physical possession of the schedule property u/s 14 of the SARFAESI Act 2OO2 are perfectly legal and valid.

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t2. So, considering all the circumstances, I am of the opinion that the Applicant is not entitled to any relief. So, I see no ground warranting interference of this Tribunal with the steps initiated by the Respondent for taking physical possession of the schedule property u/s 14 of the SARFAESI Act,2OO2. Accordingly, this point is answered in favour of the Respondent and against the Applicant.

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Potnt No.(11)r

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In the result, SA 49 124 is dismissed as there are no merits.

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Consequently, the Interlocutory Applications, pending if any, shall stand disposed of. No order as to costs.

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Communicate a copy of this order to the parties concerned.

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46 daA

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sd/(G. GOPI CHAND) PRESIDING OFFICER

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0{muzffi TRUE^COPY

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,,t'irlig;$"-

Ms Echo Energies v. Idbi Bank

Case brief

What is this about?

What did the court decide?

Ms Echo Energies v. Idbi Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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