The Debts Recovery Tribunal dismissed a Sanctity Application filed by a legal heir seeking to quash SARFAESI action and possession notices. The Tribunal held the application failed due to lack of right title, invalidity of unregistered agreements, and non-joinder of necessary heirs.
The application SA 54 of 2023 is dismissed with costs.
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SA 54 of 2023 [J)
DRT,PATNA
DEBTSRECOVERYTRIBUNALPATNA
PresidingOfficer: Shri Kaushalendra Yadav
SA-54 of 2023
.........Applicant
Versus
.........Respondents
Present:
| Forthe Applicant | : Sh.Mr Rahul,Advocate |
|---|---|
| Forthe Respondent 1 and 2 | : Sh.Manish kishore, Advocate |
| For the respondent 3 | : None |
Dated: 16.07.2025
JUDGMENT
/: '~') ,.....,
SA S4 of 2023 IJI
DRT,PATNA
after the issuance of the demand notice, the respondent bank proceeded further and issued a possessionnotice dated 27,12.2022 under Section 13(4) of the Act. Aggrieved by the possessionnotice, the present Securitization Application (SA)hasbeen filed.
DRT,PATNA
SA 54 of 2023 [J]
facilities are illegal. The respondent Bank issued Demand Notice dated 12.09.2022but the said demand notice was never servedto the applicant. Further,the possessionnotice dated 27.12.2022was pasted upon the premises of the flat in question. The applicant beingone of the sonsof the late BaleshwarSinghrepresentsboth of his brothers on their behalf and for the same, affidavits dated 24.01.2023 authorizing the applicant to represent before this Tribunalare attachedwith this application.
Furthermore, the respondent bank submitted that as RespondentNo.3 failed to repaythe loan amount, the respondent bank declared the account a Non-Performing Asset (NPA) on 30.07.2019and served a demand notice dated 12.09.2022under
SA 54 of 2023 U)
DRT.PATNA
section 13(2) of the act to the borrowers and guarantors, followed by a possessionnotice dated 27.12.2022 under section 13(4) of the act, which was affixed to the property and published in the newspaper in accordancewith the SARFAESIRules.
executed bv the builder. The applicantr,
7,ed a Share <sup>1</sup> \¥>
DRT,PATNA
SA 54 of 2023 IJ]
Distribution dated 11.05.2015 which indicates that it was executed between applicant herein and builder company but it was unregistered and other landowner was not made part of this share distribution agreement however the other landowner appears in the share distribution as witness. As any creation of right requires registration under Section 17 of the Registration Act, such alleged share distribution creating rights in the mortgaged property cannot be recognizedunder the law.
ORDER
The application SA 54 of 2023 filed by Sanjay Kumar Singh, is dismissedwith costs.
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[KaushalendraYadav]
PresidingOfficer Debts RecoveryTribunal, Patna
Judgment signed, sealed,dated and pronounced in the open court on this 16TH Dayof July, 2025.
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[KaushalendraYadav]
PresidingOfficer Debts RecoveryTribunal, Patna
3 issues framed by the court
Whether the application to quash SARFAESI action taken against a property where the applicant is only a legal heir and not the borrower or guarantor is maintainable.
Whether unregistered share distribution agreements creating rights in mortgaged property are valid under the Registration Act.
Whether non-joinder of other legal heirs renders the application unmaintainable for causing multiplicity of proceedings.
3 provisions across 2 enactments
Sanjay Kumar Singh
The Authorized Office Cum Chief Manager, Assest Recovery Management Branch, Canara Bank, Patna
The Branch Manager, Canara Bank, Patna
MIS Nissa Realtors Pvt Ltd
Kaushalendra Yadav
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
