Debts Recovery Tribunal dismissed the applicant's stay application as infructuous since the secured creditor withdrew the notice under Sections 13(2) and 13(4) of the SARFAESI Act, rendering adjudication on mortgage validity unnecessary.
Application dismissed as withdrawn; case consigned to record room.
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Debts Recovery Tribunal-Il, Delhi sAlLsl2O2s MRS SANGEETA GOYAL Vs FEDBANK FINANCIAL sERvIcEs LIMITED
25.03.2026
Item no.36
Present: Mr. Achin Mittal, Counsel for applicant Ms. Radha Singh, Counsel for respondent FI
Matter is taken through Video conferencing/Hybrid mode.
The Ld. Counsel for respondent FI has submitted that she has withdrawn the notice issued under section 13 (2) and 13 (4) of the sARFAESI Act. Therefore, the SA has become infructuous.
On the other hand the Ld. Counsel for applicant has submitted that he has filed the SA with the prayer that the mortgaged created in favour of the bank is void and therefore, the declaration may be issued that the action taken by the FI are bad in law. under section L7 (L) of the SARFAESI Act any aggrieved person may fire an apprication against the action taken by the respondent FI under provisions of the SARFAESI Act after issuance of the notice under section 13 (4) of'the sARFAESI Act. This Tribunal can look into the matter as to whether the action taken by the secured creditor are in accordance with the provisions of the SARFAESI Act and SARFAESI Rules. No relief of the declaration can be passed by this Tribunal. As the notice under section 13 (4) of the SARFAESI Act against which the present sA has been filed has been withdrawn alongwith the notice issued under section 13 (2) and the application filed under Section L4 of the SARFAESI Act has also been withdrawn, therefore, the SA has become infructuous and is liable to be dismissed. If secured creditor initiate fresh SARFAESI action, the applicant is free to challenge the same in accordance with law.
The Ld. counsel for applicant has submitted that he has prayed that the mortgage is not valid and therefore, this Tribunal has to decide whether the mortgage is varid or not? once the notice under section 13 (4) has been withdrawn, this Tribunal has no jurisdiction to decide the vatioity or the mortgage.
SAlLBl2025 is dismissed as withdrawn.
File be consigned to record room.
c
CT\ (susHrL KUmAR hnsrocr) PRESIDING OFFICER DRT-II, Delhi
2 issues framed by the court
Whether the application becomes infructuous when the notice under Section 13(4) of the SARFAESI Act is withdrawn.
Whether the Debts Recovery Tribunal can decide the validity of a mortgage after withdrawal of the recovery notice.
3 provisions across 1 enactments
Mrs. Sangeeta Goyal
Radha Singh
FedBank Financial Services Limited
Sushil Kumar Hansraj
Presiding Officer DR-II Delhi
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
