Allowed

M Ravikumar v. Grihum Housing Finance Limited

DRT4 Mar 2026SA/118/2025

Case brief

AI extract

What is this about?

In an ex-parte SARFAESI application, the Tribunal set aside a Sale Notice and a Possession Notice dated 2023-2024 issued by the Defendant Bank, noting the applicant failed to file objections under Section 13(3-A). The applicant was directed to repay the dues following strictly the SARFAESI Act.

What did the court decide?

Set aside the Possession Notice dated 17.02.2023 and Sale Notice dated 08.03.2023; direct the Bank not to include expenditures in the loan account; allow fresh action following SARFAESI Act.

M Ravikumar versus Grihum Housing Finance Limited — Banking and Recovery | DRT (2026)

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SA No. 118/2025

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Fair Order

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IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI

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DATED THIS 04^th DAY OF MARCH 2026

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PRESENT: SEEMA SINHA

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[PR. DISTRICT & SESSIONS JUDGE - Retd] PRESIDING OFFICER

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SA No. 118/2025

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Mr. M. Ravikumar, S/o P. Murugan,

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No. 80, 82, Moonusamy Kovil Street,

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Guddalur, Theni District – 625 518.

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Mrs. Subitcha Muthukumar, W/o Muthukumar,

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No. 82 4, Moonusamy Kovil Street,

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Guddalur, Theni District – 625 518.

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Mr. Bharath, S/o P. Murugan,

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Door No. 1-A, W-4, Kottai Karuppasamy Kovil St.,

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Guddalur, Theni District – 625 518. ---- Applicants

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The Authorised Officer,

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GRIHUM Housing Finance Ltd., 2^nd Floor, DKS Tower,

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No. P/1/45/4, Theni Cumbum Main Road, Theni Highway Opposite, Palanichettipati, Theni – 625 531. --- Defendant

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Appearance of Advocates:

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Mr. M. Arun Murugan ---- Counsel for the Applicants Defendant Bank sets ex-parte

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This SARFAESI Application was heard in the presence of Counsel for the Applicant and fixed for passing final order before and upon hearing the arguments of the Counsel and having stood over for consideration till this day, this Tribunal delivered the following:

Page 1 of 6

SA No. 118/2025

O R D E R

1. This Application has been filed U/s 17 (1) of the SARFAESI Act, 2002 by the applicant praying that this Hon’ble Tribunal may be pleased to pass an order to set aside the impugned Sale Notice dated 07.02.2025, issued by the Defendant Bank under SARFAESI Act.

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2. The brief averments of the Application filed by the Applicants are as follows :-

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(a) The Applicants submitted that this application is filed challenging the Sale Notice dated 07.02.2025, issued by the Defendant under Section 13 (4) of the Act for the property offered as security for the alleged dues in respect of the loan facilities availed by the Applicant.

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(b) The Applicants submitted that they have approached the defendant bank for availing the equitable mortgage loan of Rs. 19,50,000/- against the property mentioned in the scheduled. After that the Defendant bank accepted the Applicant's request and sanctioned a loan of Rs. 19,50,000/-by letter dated 26-02-2021. The 1st Applicant had executed a Memorandum of a deposit of Title Deeds dated 16-03-2021 in favour of the Defendant Bank and thereby created equitable mortgage.

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(c) It is further submitted that a sum of Rs, 19,50,000/-was disbursed to the Applicants and the Applicants agreed to repay the loan amount with interest in 169 E.M.Is. Further the Applicants committed default in payment of the equated monthly instalments and other amounts due and payable under the said loan agreement.

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(d) It is further submitted that the Defendant Bank issued demand notice dated 09-05-2023 to the Applicants Under Section 13(2) of the SARFAESI Act calling upon the Applicants to repay the outstanding loan amount of Rs. 20,61,130/- as on 09-05-2023 together interest.

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(e) It is also submitted that the Defendant Bank issued Possession Notice dated 21-08-2023 Under Section 13(4) of the SARFAESI Act and the Applicants have failed to settle the of Rs.20,61130.09/- as on outstanding loan amount 09.05.2023. The defendant has taken physical possession of the scheduled property on 30-08-2024.

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Page 2 of 6

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SA No. 118/2025

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(f). The applicant submitted that he is facing immense hardship as the result of the action initiated by the defendant. It is therefore just and necessary that the impugned sale e-auction notice as on 09.05.2023, for the due amount a sum of Rs. 20,61,130.09/- dated 07.02.2025, issued to the applicant to be set aside, for the following among other

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GROUNDS OF APPEAL

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(i) The Defendant Bank has not followed the procedure contemplated under the SARFAESI Act and no possession contemplated under the notice was issued to the Applicants as Act.

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(ii) The Defendant Bank has not followed the procedure of the publishing the Possession Notice in a local vernacular as contemplated under the Act. The act of the Defendant Bank is against the principles of natural justice and Law.

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(iii) The physical possession of the scheduled property was taken by the Defendant Bank on 21-08-2024 which is arbitrary in nature, illegal and contrary to law, weight of evidence.

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(iv) The Defendant failed to follow the procedures contemplated in the SARFAESI Act.

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(v) The Defendant Bank ought to have seen that the Applicants have paid nearly Rs.7,00,000/- and that due to unavoidable situation the Applicants could not pay the loan amount.

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(vi) The Applicants are willing to repay the loan amount and that Defendant Bank have taken possession of the scheduled property which is a dwelling house and that the Applicants have no other residence except the above scheduled property.

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(vii) Applicant had filed an Miscellaneous petition in C.R.L. M.P No: 4891 of 2024 before the Learned CJM, Theni and at that time the defendant had mentioned himself as Poonawalla Housing Finance limited and at present had mentioned Grihum housing finance and because the negligence of the defendant I was prejudiced and only because of the act of the defendant my rights were violated.

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Page 3 of 6

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SA No. 118/2025

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(viii) Further the applicant had already challenged the learned CJM, Theni order passed in C.R.L.M.P No: 4891 of 2024 dated 23.07.2024 before this tribunal and the matter is still pending as concerned and by suppressing the material facts and the order challenged the defendant had come up with the auction process which arbitrary and ultra vires.

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(ix) The Applicants reserves their right to raise any additional grounds if they come across during the pendency of the application and in any event, the impugned Sale Notice dated 07.02.2025 is liable to be set aside.

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SCHEDULED OF PROPERTY Description of Property:

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Theni District, Periyakulam Registration District, Cumbum S.R.O., Gudalur Municipality, Keela Gudalur Village, Natham Survey No. 1217/1 in Old Ward No.3 in New Wani No.4, Moonusamy Temple Street in Door Nos.80 & 82 for an 1404 ½ square feet (East-West: Northern side 25 ½ feet, Southern Side 28 feet, South-North: 52 ½ feet) of house site property within the house site property Tin Sheeted Roof House Property constructed with E.B and water tap Connection the Applicants is Having Common wall Right in Both east and west sides with usual pathway Rights and with all its amenities.

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East : House Site belonged to Malaisamy Aasariyar West : House Site belonged to Nallu Thevar North : Common lane and House belonged to Pandian South : East-West Street.

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INDEX TO TYPED SET PAPERS

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Sl No.	Date	Particulars
01	09.05.2023	Demand Notice
02	21.08.2024	Possession Notice
02.	23.07.2024	Order passed by the CJM under
		Section 14 of the SARFAESI Act.
03.	07.02.2025	Impugned Sale Notice

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3 . On the other hand, the Defendant Bank did not appeared before this Tribunal inspite of service of notice, this case was heard Ex-Parte on 21.11.2025.

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Page 4 of 6

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SA No. 118/2025

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4. ON THE BASIS OF THE ABOVE PLEADINGS, THE POINT WHICH ARISES FOR CONSIDERATION IS :-

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WHETHER THE APPLICANT IS ENTITLED TO GET THE RELIEFS AS PRAYED FOR ?

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5. Having heard the parties and after going through the entire documents available on records, this Tribunal find that there is no dispute between the parties with regard to the availment of loan facilities by creating equitable mortgage over the Schedule mentioned property.

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However, the applicant has failed the repay the loan amount, hence, the defendant bank proceeded under SARFAESI Act for recovery of loan amount. The Defendant Bank issued Demand Notice U/s 13 (2) of SARFAESI Act on 09.05.2023 demanding a sum of Rs. 20,61,130/- (Page Nos. 18 to 21). I find that the applicants has though admitted that he has received the Demand notice, but he has not filed any objections or representation U/s 13(3-A) of the SARFAESI Act.

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Thereafter, I find that the Defendant Bank had issued Possession Notice U/s. 13(4) of SARFAESI Act on 21.08.2024 for a sum of Rs. 20,61,130/- (Page Nos. 22-23). The Applicant in his averment stated that the Bank has failed to follow the procedure contemplated in the SARFAESI Act, but on the other hand the Bank did not appear inspite of service of notice to rebut the allegation of the applicant by filing evidence to prove that he has serve the Possession Notice to the applicant and also published in two leading newspaper one in English and other in vernacular language and also affixed the notice on the conspicuous part of the property.

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I find that the allegation of the applicant that bank has not followed the procedure mentioned in the SARFAESI Act and Rules has not been disproved by producing any evidences. Hence, I find that applicant has been able to prove his case in his favour.

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In the result,

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(a) SA No.118/2025 is allowed. The Possession Notice dated 17.02.2023 and Sale Notice dated 08.03.2023 are hereby set aside with direction to the Defendant Bank not to include all the expenditures incurred in issuance of Impugned Possession Notice dated 17.02.2023 and Sale Notice dated 08.03.2023 in the loan account of the Applicant.

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Page 5 of 6

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SA No. 118/2025

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(b) The Defendant Bank is at liberty to initiate fresh action against the Applicant for recovery of loan amount following strictly the SARFAESI Acts & Rules.

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Consequently, all pending IAs (if any) are also disposed of. No costs.

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Dictated to Typist (SKP), taken down, transcribed, typed by her, corrected and pronounced by me in the Open Court in this the 04^th March, 2026.

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Sd/- (SEEMA SINHA) PRESIDING OFFICER

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Uploaded on 12.03.2026

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M Ravikumar v. Grihum Housing Finance Limited

Case brief

What is this about?

What did the court decide?

M Ravikumar v. Grihum Housing Finance Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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