Allowed

M/s. Sivanesan Hardwares v. Fedbank Financial services Ltd.

DRT28 Mar 2025SA/591/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed a Securitization Application filed by a partnership firm and its partners against a bank. The Court set aside an impugned order of eviction because the bank failed to file a counter to the application's contentions despite multiple adjournments and sufficient opportunities.

What did the court decide?

The Securitization Application allowed; the S. 14 order dated 21.09.2023 set aside; possession restored to mortgagor; bank directed not to debit SARFAESI expenses and to file a memo.

M/s. Sivanesan Hardwares versus Fedbank Financial services Ltd. — Company and Corporate | DRT (2025)

SA No.591/2023

28.03.2025

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 28^th day of March, 2025

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Present: SMT. S.V. GOWRAMMA Hon’ble Presiding Officer

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SARFAESI APPLICATION No. 591 of 2023

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M/s. Sivanesan Hardwares, Represented by its partner, Mr. Sivanesan, Mrs. Latha, No. 136, Plot Nos. 246, 247 EH Road, Block No. 42, Sharma Nagar, Vysarpadi, Chennai- 600 039.

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Mr. Sivanesan,

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No. 136, Plot Nos.246,247 EH Road, Block No. 42, Sharma Nagar, Vysarpadi, Chennai- 600 039.

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Mrs. Latha, W/o. Sivanesan, No. 136, Plot Nos. 246, 247 EH Road, Block No. 42, Sharma Nagar, Vysarpadi, Chennai- 600 039. …Applicants

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-Vs-

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FEDBANK Financial Services Ltd,

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Navin’s Presidum,

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B Block 5^th Floor, Door No. 103, Nelson Manickam Road, Amanjikarai, Chennai- 600 029. Rep by its Authorized officer. …Respondent

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Counsels on record / appeared:

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Counsel for Applicant : Ld. Counsel Ms. A. Madhumathi

SA No.591/2023

28.03.2025

: - F I N A L O R D E R - :

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The present Securitization Application [SA] is filed on 07.11.2023 under Sub-Section [1] of S. 17 of the Securitization And Reconstruction of Financial Asset and Enforcement of Security Interest Act, 2002 (for short 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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The first applicant is M/s. Sivanesan Hardwares, a partnership firm represented by its partner Mr. Sivansesan who is the second applicant herein, and the third applicant is Mrs. Latha, partner of M/s. Sivanesan Hardwares.

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The present SA is filed challenging the impugned order dated 21.09.2023 passed by the Hon’ble Chief Metropolitan Magistrate in Crl.M.P.No. 41065 of 2023. The Tribunal vide proceedings dated 22.11.2023 dismissed SIA. Nos. 1702/2023 and 1703/2023 with cost of Rs. 2000/payable to DRT and DRAT Library Fund and the matter stood posted on 28.12.2023 for reporting compliance and for counter and typed set of documents.

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The matter was taken on 12.02.2024 and stood adjourned to 04.03.2024 for filing of counter. On 04.03.2024 memo reporting the compliance of the second conditional order has been filed by the applicant however, there is no counter along with the typed set of documents by the

SA No.591/2023

28.03.2025

bank. Hence, the matter stood adjourned to 10.04.2024. On 10.04.2024

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the bank has not filed the counter. Even on 28.06.2024,20.09.2024,09.12.2024 and matter stood posted on 12.03.2025 for filing of counter. It is seen that the matter was taken on 12.03.2025 the applicant had complied with the Interim conditional order and though sufficient opportunities were given for the bank to file counter, no counter is filed. Hence, the matter stood posted to 28.03.2025, today the matter is taken up.

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Heard and perused the records of the case.

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None represents the matter. It is seen that the respondent bank has filed vakalat on 15.12.2024 however, has not filed the counter even as on today. It is seen from the proceedings that the applicant has complied with the interim conditional order. However, the bank has not filed the counter, in spite of sufficient opportunities and it appears the respondent bank is not keen in prosecuting the matter. As the bank has not filed the counter countering all the contentions raised by the applicants in the SA. The same is only to be allowed.

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The Respondent bank being the Financial institution, a secured creditor is duty bound to assist the Tribunal with supporting documents substantiating the measures taken by the secured creditor in accordance with the Acts and Rules made there under. On the other hand, allegations

SA No.591/2023

28.03.2025

made by the applicants in the present SA is not countered by bank

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resulting in allowing the SA.

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Accordingly, SA stands allowed. The S. 14 order dated 21.09.2023 is hereby set aside. The possession if taken pursuant to S. 14 order be restored to the mortgagor. Respondent bank is directed not to debit any of the SARFAESI expenses to the borrowers loan account including the legal expenses incurred for this SA and file a memo to that effect before the Registrar Court within a week from the date of receipt of this order. Thereafter, Respondent bank will be at liberty to proceed further with their SARFAESI measures in accordance with law.

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(Dictated to the Stenographer(MS), transcribed by her, corrected, signed and pronounced by me in Open Court, on this the 28^th day of March, 2025)

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Sd/S.V. GOWRAMMA PRESIDING OFFICER-DRT III

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SA No.591/2023 5 28.03.2025

M/s. Sivanesan Hardwares v. Fedbank Financial services Ltd.

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M/s. Sivanesan Hardwares v. Fedbank Financial services Ltd.

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