Allowed

Smt Kamozzala Savithri v. State Bank of India

DRT6 Aug 2025SA/69/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant's security application challenging the bank's pre-sale and sale notices. The court set aside the notices, holding the bank violated Rule 8(6) by not granting clear 30 days for redemption and failed to properly serve the possession notice.

What did the court decide?

SA No. 69/2023 allowed by setting aside the pre-sale notice dated 07.02.2023 and the sale notice dated 27.02.2023; Respondent to issue fresh demand notice.

Smt Kamozzala Savithri versus State Bank of India — Contract and Commercial Disputes | DRT (2025)

¶1

IN ]"HE DEBTS^{RECOVERYTRIBUNAL- I AT HYDERABAD} DATF:D THIS^{THE 6rFr DAY OF AUGUST} '^2C-25

¶2

PRESENT: GUMMADI^{GoPICHAND,PRESIDINGoFFICER}

¶3

sA.No.69/2C^23

¶4

S mt. Kam ozzalaSavi^{th ri,} W/o K.Raj anna, Agcd 51 ycars,^{Occ:houscwilc,} R/o I.l.No.6'^I 3,^Vaggugadda, ManthaniTown,^{I)cddapallil)is1''}

¶5

...Applicant

¶6

Versus

¶7

State tlank^{c>f India} Rcp. by its Authorizcd^officcr AI)l] Ilrar-rch^20431], Manthani, l)t:ddapalli^{T)isto05 I 84}

¶8

... Respondent^Ilank

¶9

Counsel .fo^{r the APPlicant} Counsel for^{llesPoruclentbank}

¶10

Sri'f.Sndhar^RedclY Sri N.Melter^Prasad

¶11

:ORD.ER:

¶12

'lhis Sccuritization application^{is filcd by l.hc Applicant u/s'.17of ttrc} SARIfnltst^{l\c:t,,2OO2challcnging t.hcNoticc d'1.O7.O2.2023 u/r8(6) of} St--crtritv lnLcrcst(l')rtlbrccmcnt)^{Rulcs,2O02ilndalso Salc Noticc} ctt.2,/.o2.2O23lor^{conductingauctior-i of the s-chedule propcrtv and to}

¶13

de<:larc thc^{samc as rt}

¶14

'lhc elt'errncntselt'errncnts #ffi bricf, are^{as undcr,-undcr,-}

¶15

bricf, are^{as undcr,-undcr,-} 2. 'lhc elt'errncntselt'errncnts fR $$ t }3ank bY^creating 'lhc Applican mortgage in ,*':"3',,n#glffi"ll and he was^rcgularin rcpaying thc Ilr.rt thc t llank dcclarcd^{thc loan} h noticc dt.31^{.o5.2o22 to thc} account as noticc, the APPlicant^submittcd Applicant..^{T<> thc} otrjcctrorrs but^{thc llt;spc>ndr:nt hasnot issrlcd anY rcPlY 1o ttrc s:ricl}

¶16

sA.No.59/2023

¶17

ohrjcct.ions. On 15.12.2022,^{somc personsclaimed to be recovery agents} of thc Respondentvisited^{theschedule propertyand demanded the} Applicant. 1.o vacate the^{scheduleproperty and handoverthe physical} posscssion. At the requcst^{of thc Applicant, they furnistred a copy of ttre} posscssion nol.icc ctt.0:l^{.O8.'2022 and thc said notice was not served on} thc Applicarrt.^{Ttrcrcaftcr, thcRcspondcnl. Ilank issucd noticc} dL.o7.o2.2o23 u/r^{8(6) of SccurityInterest (Enforcement) Rules,2oo2} stating that^public auction^{will be conductedin respect of thc schedule} propcrry aftcr cxpiry of^{thc nolicc pcriod. Thc llespondent also initiatcd} procecdings beforc Ld.C.JM,^{Peddapalli for taking physicalpossession} of ttre sctredule^{property.After filing of the SA, the Respondent bank} issued Sale Notice^{dt.27.O2.2023for conducting auction of the schedule} property on 06.04.2023^{ancl the said noticewas issuedbefore the} expiry of 30 days^{period mcntionecl in the notice dt.o7.o2-2023issued} by thc Ilank. Ilcnce^{ttrc SA.}

¶18

¶19

'lhe Respondent Ilank filcdt-hcir Rcplv^{denying all thcadvcrst"} in thc SA ancl thc^{contcnl.ions of thc Respondcnt} allegations made IJank, in bricf, arc as undcr

¶20

The Applicant committecl^{default in repaying the loan dues and so, l'he} loan account was^{declared as NPA on 26.05 .2022and the Respondent} Ilank issued demand^{noticedt.31 .o5.2022u/s13(2) of the SARI'-AI.IISI} f\cL, 2OO2 an<l^{scnt thc saicl noticc to thc Applicantthrough Rcgd'Post'} ln rcsponsc to^{t.hc said loticc,t.hc Applicanl- submit'tedrepresentation} dt. 15.06).2022^{anci in thc sairl rcprcsent.ation,she has not raiscd any} dcmartd nol.icc, so^{no reply was issucd by thc} objccl.iorrs Ilank. to comply with thc^{said demand nof icc,} r6\ thc R k isi rsscssion noticc^{dt.Ol .O8.2022undcr} ffindcnt Sccti 3(4 Lhc SARI,'A L, 2OO2 and^said Posscssion^noticc was ish spapers and^{affixed on the schedule} issued sale notice^{dt.O7.02.2023 ulr} prop 8(6) of ,^.1.{,r :mcnt) Rulcs,^{2OO2and pursuant to the}

¶21

SA No 69/202'3

¶22

szrici notioc, tttc^{bzr-itr< irritiatt:d procccclingsu/s l4of ttrc sARI"AItsl} Act, 2OO2 bctbrc^{thc Lri.cJM, I)cddapalli for appointmcnt of advocitLc} commissioncr^{for takingphysical posscssion of thc schcdulc propcrty'} ,lhus, thc llcspr>ndcnt bank has cluly followed the proccdure^{laid dorn'n} undcr rhc^{provisionsofsARI"AI'ISI Acl., 2OO2 and Rulcs made} thi-.rcundcr.^{Accorclingly,thc RcspondentIlank prayed to dismisstttc} sn.

¶23

llcard Lcl. Oounscl^{for thc Applicant ancl ld' Counscllor thc Rcspondcnt} Ilanl<.

¶24

Now, the^{points that arisc for consideration are'-}

¶25

i) w^tether the^{Applicant has established"an!/ ualklrLroundsfor} challengirug^{rhe Pre sale Notice (1t.07.02.2023 u/r 8(6) of seanritg} Iruterest^{(littforcement)Rules, 2002 and- Sale Notice dt.27.02.2023} issuerJ by^{the ResponclentBank forconducting aucliono.f the} scheclule ProPertg^?

¶26

il To u.tlLcrt^relit:/-.)

¶27

Point No.fi):'

¶28

for the APPiicant^{and I'd'} 6. I)uring thc^{course of argumcnts, I'd' Counsel} their resPective^versions Counsel^for the^{RespondentRank reiterated} as statcd^supra.

¶29

'lhcrc the fact^{that Applicantavailed loan from} :trLcd mortgagc^{irr respcctof thc schedule} thtr ittcd dclar.rlt^{in rcpaymcnt<lf loan dui:s} p Is classificcl as NI']A. Thcrc is also no a Lt r.f,"^{Responclentllank issucd demand} di^{$l ffidll,?,"ffi;".$} rcling tt-,c;ffi noti Applicanl. aud^{thc samc is reccivcd by 1.he}

¶30

SA.Na 69/?Dl

¶31

Applicanl.. In rcspot-rsc to^{thcsaicl dcmandnoticc, thcAppliczrnt} subm^j ttcd objcct.ion^s.

¶32

'lhc spccilic conl.cntiorl t>f thc Applicant^{is that thc llank failcd to} comph' t,ith Scction^{13(:lA)of thc SARI"AI'ISIAct, 20O2 bygiving rcply} to thc objr:ctions^{r:riscd bv thc Applicant in rcspor)scto thc dcmand} noricc issuccl u/s^{I l)(2)oflhcSAltl'AI,ISIAct, 2OO2.ThCfurthCr} contcntion ol^{thc Applicant is thal. t.hc impr-rgncdposscssionnoticc\'.rs} not scrvcd on thc^{Applicarlt and thc bank issued thcimpugncdSalc} Noticc clt.27.02.202-3^{bclbrc thc cxpiry of 30 days pcriod slipulatcd in} thr: I)rc salc^{notict: dL.O'/.O2.2O2:) issucd by thc tlank u/r8(6) t>f Rulcs'} 2o02 ancl so. thc sald^{trolir:cis not l<;gal and liablc1.o b<: scl asidc'}

¶33

contended that the^{l3ank hasdr'r lY} 9. Per contra, thc^{RcsPondcnt bank} followcd thc prcscribcd^proccdtrrc t ontcmplatcd^{unclcr thc provisionS} madc thcrcunder^{in issuing all t:he} of SARFAI')SI^{l\ct, 2OO2 and Rulcs} relevant notices^{to thc Applicant.}

¶34

In thc llcply^{filed by thc RcspondentBank, they admitted aboutthc} obje ct ionssubmittcd^{by theApplicant to thedemand notice} d,L.31.O5.2O22^{issucd by thc llank. llut no reply is issued by the Ilank} to thc said otrjections^{raiscd by 1he Applicant' As per the provisions of} Scction l3(3A) of^{thc SARITAIISI /\cL,2OO2,Lhe Respondent llankis} cxpoctcd^{1.o issuo rcpll' to thc objcctionsraised by thc Applicantin} rcsponsc t0 thc^{noticc u} /^{s 1 {}(2) of thc Act, within fiftccn davs' I}ut} without lurnishing^{any such rcply l-o thc objectionsraiscd by thc} Applicanl. in rcsponsc^{to 1.hcdcmand noticc issued u/s 13(2) of thc Act'} thc R taway issucd^{posscssionnoticc dt'O1'08'2022} rl for taking^{possessionof Ihc sccurcd assct'} r:X4T,rt*,^Aaff, tling to{$c^App shc has not^{rcccivcd thc saidposscssion} by thc Rcspondcnt^{tlank for cstai>listrirtg} 1., 'ilh 1l6r2[f; '' duly scrvcd^{on thc Applicant. IIowcvcr, Ihc} f,f,^{t lt,} 1-rosscssiort^troLi nl lJartk cs of photograph^{dcpictir-rg thc a fTixturc of}

¶35

.S/. Na.^(;9/) t).

¶36

thc posscssion nol.icc on thc sctlcdulc^{propcrty.l')vcn ttrough,t hc} Rcs;tc-iticicrlt^{(--olrlcr.rclcd} tlral it^{tiers publishcdt-hc said posscssir)ll noli('c} in tr.t,o lcacling ncwspapcrs,^{r1o matcrial documents are filcdto provc} that bank has publistrcd^{thc impugncdposscssionnoticc in two lcadirrg} ncwspapcrs as conl.cmplatcd^{undcr Rulc 8(2) ofSccurityIntcrr:st} (linlcrrccmcr-rt) Rulc s, 2OO2.

¶37

I l. Allcr issuing^{posscssiortnoticc, thc Rcspondcnt llank is cxpcctcdto} issrrr;^policc u/r 8(6)^{o1'Sccur-i1yIntcrcst(l')nforccmcnl.) liulcs, 2OO2i>y} gir,,ing thirt1,, clays lin-rc to^{thc t)orro'ut'Cr/morl.gagor for rcdccmingtlrc} sctrt:dulc propcrtv^{bV paving t.hc cntircoutstandingducs. Intlrc} insl:rnt casc, thc Rcspondcnl^{l>ank issucdNt>ticc dl.O7.O2'2023u/r 8(i;)} of liulcs, 2OO2.^In ttrr:^{saicl noticc,i1. is statcdthat thc propcrty which is} mortgagccl b1, ttrc^{Applicant. will bc sc>ld in thc c aucl.ion aftcr cxpiry of} loticc pcric>c]. As pcr tho^{provisions gf Rulc 8(6) ol'SccurilvInl.crt'st} (lCrrlirrccmcnt) Rulc-s,2O02,^{thc sccurcdcrcditor is cxpccl.cdto givc 30} Clil's limc tu^{n:clcitnt tl'ic st:ct.tt't--dassct. Ilut, wittroutgiving clcar- thlrty} cla.t,sfjmcto thc^{Applii:arltLo rcdcr:mthc sccurcd assct, thc Rcspondt'nt} Ilank issuccl thr: impugncd^{Salc Nol.icc orr 27.O2.2023 fixing auctionof} Lh<: schcclulr:^{propcrt.' orl06.04.2023. No proof is lilcd ilylhc} Rcsponclcnl ti>r csl.ablishing^{that thc said Salc Nol.icc dt.2-/.O2.2'023 is} all]xccl on thc^{schcdulcpropt:rtV and it is publishcd in tu'olcadirrg} nc\rspapcrs.

¶38

t2. As pcr thc^{provisionsof Rulc 8(6) of Sccurity Intcrest (llnforccmcnt)} Rulcs, 2OO} thcrc is^{an obligal.ion on the part of thesccurcd creditor} to issuc noticc u/r^{8(6) of SccuritJr Intcrcsl-(l')nforccment) Rulcs, 2OO2}

¶39

b1' givin lty^{to thc borrowcr/mort-gagor torcdccm tl-rc} 7*qil,wffir}

¶40

ffi;r#,[:ffi ':' .: I ;] ;;::# ":;.ff ::T.::';::i,J, l":, ::
)

¶41

SA No 69/)0⁾

¶42

scp.rra[c salc notit:c. Ihrl. in thc^{jr:stantcasc,thc llcsp<>ndcnlbelrrk} vi6litttril llutlt'8((r) ttl' Rt.iltls,,2O02^{bv not giving clcar 30 days timc I'rr} rgcle n-rirLiot-t ancl thcrt:b1' thc Applicant^{Iost hcrvaluablc right of} rccit: rt'r pLio n .

¶43

t3. So, ir-r vic'rl' o['thc abovc^f:lcts and^{circumstanccs<>f thc Casc, il is clurr} that thc Rcsponclcnt llank^{has failcd to complywittr Sccl.ion l3(3A) of} rhr: SARFAIiSI Act,2002^{b1,noLfi-rrnishingrcply to Lhc objcctionsraiscd} b),tt,c Applicant in^{rcsponsc to thc dcmand noticc issucd by thc beirlk} ancl thc l>ank also^{failcrl to scrvc and publish the impugncd posscssion} rroticc ir-r lrno claily r)c,,spapcrs^{and ttrc bank in a hurricdmalln('r,} issurr:cl Llrr: impugnccl Salc^{Noticc d,t.27.O2.2023bcforc thc cxpin'of} thrrr-r'cllrYs 1-icrrtlcl^{giVctl to thc Applicant to rcdccmthc sr:hcdLrlc} prolrcrrv vidc Noticc cll.07 .0..).O23^{issuccl u/r 8(C>) of l?ulcs,2OO?-.}

¶44

So, ip tttt: circgmsLanccs,^{I am c>f thc opinion thal. thal. thc pro<:ccdirrqs} initrirrr:cl br, rltc ltt:sponclcnl^{bar-rk u/s l4 of rhc SARI"AFISIAct, 2OO2iirr} taking physical^{posscssicln of thc schedule propertythrough advocart'c} commissioncr pursuant^{to thc orders of I,d.CJM, Pcdapalli arc trot} tcnarblc as l.hc sairl^{stcps arc initiatcd wil.hout scrving posscssion} rroticc Lct tttt: Applicant^{z1nd so, thc said procccdingsarc liaillc lrl llc} sct ltsitlt'.

¶45

Point No (ii)

¶46

Irr thc rcsult, sn^{691202:\is allowccl by sctting asidc thc impugncd} I)rc Salc nol.ice dL.O7.02.2023^{issueclby the RespondentBa.nk and also} thc Salc Noticc dL.27.O2.2O23^{issued by the Respondent bank tor} c<lnd f thc schedule property^{on 06-04.202?''Thc} R rcctccl 1o issuc lrcsh^{dcmand nol.icc to tlrc} ing l.hc proccdurc^{c<lntcmplatcd l-rndcr tlrc}

¶47

SA.No.69/2o2i

¶48

provisions of SARFAESI^{Act, 2OO2 and Rules made thereunderand} proceedfurther against the schedule^property.

¶49

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

¶50

Communicate a^{copy of this Order to the partiesconcerned'}

¶51

(Dictated to the P.5., transcnbed^{bg her, corr-e-cted,signed and pronouncedbg me in} 'the open court on this the 6th daA of Augus| 2O25)'

¶52

sdl(G. GOPICHANDI PRESIDING OFFICER

¶53

::",m$,,

Smt Kamozzala Savithri v. State Bank of India

Case brief

What is this about?

What did the court decide?

Smt Kamozzala Savithri v. State Bank of India

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Canara Bank versus M/S. Chaitanya Powerloom Industry

Uco Bank versus Smt. Pulimamidi Kavitha

State Bank of India versus Mr. Brahmosthava Industries

State Bank of India versus Sri. Rathod Babulal

Union Bank of India versus Mr. Kallepellisravan Kumar

Tamilnad Mercantile Bank Limited versus M/S. Boddam Solutions Pvt. Ltd.