Dismissed

Mr Ravikanti Ashok v. State Bank of India

DRT22 May 2026SA/153/2025

Case brief

AI extract

What is this about?

The applicant challenged a possession notice under Section 13(a) of the SARFAESI Act, 2002. It claimed procedural violations. The tribunal found no non-compliance as the bank followed due process of serving notices and published them. The application was dismissed.

What did the court decide?

Prayer for setting aside the possession notice dated 15.03.2025 dismissed. Pending applications, if any, stand dismissed.

Mr Ravikanti Ashok versus State Bank of India — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERYTRIBUNAL- I AT HYDERABAD

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DATED THISTHE 22ND DAY OF MAY, 2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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sA.No.153/2025

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Ravikanti Ashok, S/o Kistaiah, Aged 48 years, Occ:business, R/o H.No.2-5761 1, IslamPura, Road No.1, Medlife Hospital^Lane, Near Srilatha Nursing Home, Mancherial.

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... Applicant

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Versus

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State Bank of Bank, Rep. by its Authorized Officer MSME-Mancherial branch, Situated at 1O-89 to 92, Opp.Municpal Office Mancherial-504 2O8.. .. . Respondent Counsel for the APPlicant : Si D. Raghauulu : Si G. Prabhakar Sharma Counsel for the ResPondent

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Reserued on : 05.O5.2O26 Pronouncedon :22'05.2026 Uploaded to the uebsite on : 22.05.2026

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ORDER

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This Application is^{filed u/s. 17 of the Securitization and Reconstructionol} Financial Assets and^{EnforcementofSecurity Interest Act, 2OO2} (SARFAESI Act, 2002) challenging^{the PossessionNotice dt' 15.03.2025} issued by the Respondenl^{na3.Lnrespect ofthe scheduleproperty and to} f are as follows: 2. ;.:"-.""",:ffim*l ,"^22ilrYm;, l. \ /.\ E' t ', -.o '.,e,.,r,,gp,-v--'

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The Applicant availed Cash Credit facilities to an^{extent of} Rs.1,05,00,000/- from the Respondent bank^{against the mortgageof} schedule property. Due to loss in the^{business, the Applicantcould not} pay some instalments and later requested the Bank^{to regularize the loan} account by receiving the overdue amount.^{But without consideringthe} same, the Bank illegally declared^{the loan account of the Applicantas NPA} and initiated proceedings^{underthe provisions of the SARFAESI Act,2OO2.} The Bank failed to serve^{demandnotice and possessionnotice to the} Applicant. The Bank^{violated Section 13(3A)of the Act in giving reply to} the objections raised^{by the Applicantin responseto the demandnotice.} The impugned^{possession notice was neither publishedin two leading} newspapers nor affixed^{on the scheduleproperty and so, the said notice is} not legal and valid.^{Hence the SA.}

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The Respondent filed^{their Reply denying all the adverse allegationsmade} in the SA and contended^{that the Applicantis the proprietorof M/s Sri} Raghavendra Traders^{availedDropline OD facilityof Rs.1,5O,00,0OO1-} from the Respondent^{bank against the security of schedule property'} Thereafter, the Applicant^{committed defaultin repaying the loan dues and} so, the Bank classified^{the loan accountas NPA on 08.12.2024as per the} guidelines of RBI and^{issued demand notice dt.09.I2-2O24 and the} Applicant duly acknowledged^{the said notice. Thereafter,the Respondent} issued possession^{notice dt.15.03.2025 and the said notice was sent to the} Applicant through^{Regd. Post and the same was published in Hans India} and Sakshi daily^{newspapers and also affixedon the schedule property.} Thus, the Bank^{followedthe procedure contemplated under the provisions} of SARFAESI Act,^{2002 and Rules made thereunderand there are no} deviations. ndent Bank prayed^{to dismissthe SA'}

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Heard the and Ld. Counsel^{for the ResPondent} record.

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Now are

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l. rrhether the Applicant has^{establislrcdany ualid grounds} for^setting aside the Possession^{iVo ticedt.15.O3.2O25issued by the Respondent} against the schedule ProPertA?

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tt. To uhat relief?

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Point iVo.(i):-

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During the course^{of arguments,Ld. Counselfor the Applicant and Ld'} CounselfortheRespondentreiteratedtheirrespectiveversionsaSstated supra.

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ThereisnodisputeregardingthefactthattheApplicantavailedcredit facilities from^{the Respondent by creatingmortgageagainstthe schedule} property and later^{committed default in repaymentof loandues and so'} the bank declared^{the loan accountas NPA}

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The specilic contention^{of the Applicantis that the Respondent failed to} follow Section^{13(3A) of the Act in giving reply to the objections raised by} the Applicant^{in responseto the demandnotice and the Bank has not} followed the^{procedure contemplatedunder the provisionsof SARFAESI} Act, 2OO2 and^{Rules made thereunder in issuingdemandnotice and}

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possession notice to^{the Applicantand so, the said proceedings are not} legal and valid.

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But the ed that the Applicant^{availed credit facilities} from creating^{mortgageagainstthe schedule} default and^{so, the loan accountwas}

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properry ftrd th s not submitted^{any replyor objections}

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crassiftedasYt f,hf lffi."| to the'damand^{noticeand thgtx} re compliance^{of Section 13(3A) of the} Act does The demand notice^{and possession notice} iOl-e+znro(''\K'oYeft*I.

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to the Applicant by duly following the procedure as contemplated under the provisions of SARFAESI Act, 2OO2 and Rules made thereunder^and there are no violations.

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In order to prove their contention, the Respondent Bank filed^material documents along with the Reply Iiled by them. As^per the said material documents, it is clear that the Respondent issued demand^notice dt.09.L2.2o24 u/s 13(2) of the SARFAESI Act,2OO2 and sent the^said notice to the Applicant through Regd.Post and the Applicant^{received the} said notice as evidenced by his signature on the copy of the^{demand notice} filed by the Bank. However, the Applicant has not raised any^objections to the said notice. Thereafter, the Respondent Bank^{issued possession} notice dt.15.03.2025 u/s 13(a) of the SARFAESI^{Act, 2OO2 and sent the} same to the Applicant through Regd.^post and the^{Applicantalsofiled copy} of the said notice along with the SA filed by him.^{The said possession} notice was published in Telugu and English daily^newspapersas evidenced by the copies of the paper^{publication filed by the Respondent} and the said notice was also affixed on the^{schedule propertyas depicted} in the copies of photographs Iiled by the Bank. Thus it^{is quite clear that} the Respondent has scrupulously followed the^{procedure laid down under} the provisions of SARFAESI Act, 2OO2 and^{Rulesmade thereunder in} issuing possession notice dt.15.03.2025 u/s^{13(a) of the Act. Accordingly,} this point is answered in favour of the^{Respondentand against the} Applicant.

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Point No.(ii):'

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is dismissed as there are no merits in the^SA. quentl ii$tory Applications, pending if any, shall stand os,.'1"[ No order as ytAY 2tr?6

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Communicate a copy of this order to the parties concerned.

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(Dctated to the P.S, transcibed bg her, corrected, signed and pronounced bg me in the open court on this the 22"d dag of Mag, 2026)

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sd/_ (G. GOPI CHAND) PRESIDING OFFICER

Mr Ravikanti Ashok v. State Bank of India

Case brief

What is this about?

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Mr Ravikanti Ashok v. State Bank of India

Case brief

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