Dismissed

Mr Palla Kiran Kumar v. Piramal Capital and Housing Finance Ltd.

DRT2 Sept 2026SA/241/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Hyderabad disposed of a Section 17 application challenging recovery proceedings. The court found that the respondent bank had issued mandatory demand and possession notices and published them in newspapers and affixed notices on the property. The application was dismissed for lack of merit.

What did the court decide?

Application dismissed with directions that pending interlocutory applications stand disposed of.

Mr Palla Kiran Kumar versus Piramal Capital and Housing… — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERYTRIBUNAL - I AT HYDERABAD

¶2

DATED THIS THE 2ND DAY OF SEPTEMBER,2026

¶3

PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

¶4

SA.No.24I /2024

¶5

Palla Kiran Kumar, S/o Palla John Ramulu, Aged 43 years, Occ:business, R/o H.No.5-5-17 lalL, Bommalcal Road, Beside Urvashi Bar & Restaurant, Sambhani Nagar, Mustafa Nagar, Khammam,KhammamDistrict-507001. ...Applicant

¶6

Versus

¶7

Kotak Mahindra Bank Ltd. Rep. by its Authorized Officer Situated at Retail - ARD, 6-3-IlO9 I 1, 2nd floor, West Wing, Jewel Pawani Towers, Raj Bhavan Road, Somajiguda, Hyderabad-SO0 082. . .. Respondent

¶8

(Respondent was substituted as per the orders dt. 13. 10.2025 in 1.A.2242 I 2025\

¶9

Counsel for the : Si D.Raghauulu Counsel for : Sml. P.S. Sujatha 07.2026 09.2026 09.2026

¶10

.^. :^,::.,i i..i_:,.i. -,,._ii'1. This application is li1.ed-'by^{the Applicant u/s. 17 of the} SARFAESI ACt, 2002, challenging the^{proceedingsinitiated by the} Respondent for taking physical^{possession of the scheduleproperty} pursuant to the orders of Ld.CJM, Khammam^{in Crl.M.P.No.33l2024.}

¶11

2. The averments made in the application, in brief, are that:

¶12

Applicant availed housing loan of Rs. 1,13,70,000/_ from the Respondent in the year 2018 against the mortgage of schedule property as securitSr for the repayment of the loan. Due to the ill-health of his mother and also due to Covid-19, the Applicant,s business was in loss and he could not pay some instalments. The Respondent illegally declared the loan account of the Applicant as NpA and without considering the proposal of the Applicant for regularization of the loan account, initiated proceedings under the provisions of SARFAESI Act, 2OO2. Without serving demand notice and possession notice to the Applicant, the Respondent straightaway proceeded for taking physical possession of the secured asset u/s 14 of the Act without following due process of law. The impugned possession notice was neither published in two leading newspapers nor affixed on the schedule propert5r. Hence the SA.

¶13

The Respondent ltled their Reply denying all the adverse allegations made in the SA and contended that the Applicant availed housing loan from Dewan Housing Finance Corporation Ltd.(DHFL) against the mortgage of schedule property. The assignor of the Respondent herein Piramal Capital and Housing finance Ltd. had acquired DHFL and the original lender has since been merged with Piramal Capital and Housing finance Ltd., its name is changed to Piramal capital and Housing Finance Ltd. The assignor vide Assignment Deed dt.27.12.2O24 t.as assigned the debt with regard to the Applicant herein in favour of the Respondent.herein and.5o, the Respondent has been brought on record.

¶14

admittedly committed default and so, as NPA on 09.06.2022 as per the the Respondent initiated proceedings and issued demand notice and posieS'si-gn,notice by l$getfte the procedure and thereafter proceeded u7s r4 o.f-ttre SARFAESI}LI',2002 fo, taking^{physicalpossession} of the

¶15

schedule property through advocate commissioner. Accordingly, Respondent prayed to dismiss the SA.

¶16

Heard Ld. Counsel for the Applicant and ld.Counsel for the

¶17

Respondent. Perused the material brought on record.

¶18

Now the points that arise for consideration are

¶19

i. wheth.er the Applicant ha,s established ang ualid grounds for challenging the proceedings initiated bg the Respondent for taking phgsical possession of the scledule propertA u/ s 14 of tle SARFA.ESI Act, 2002?

¶20

ii. To what relief ?

¶21

Point .ilIo.lif :-

¶22

During the course of arguments, Ld. Counsel for the Applicant and Ld. Counsel for the Respondent reiterated their respective^{versions as stated} supra.

¶23

The undisputed facts of the case are that the^{Applicantavailed housing} loan from Dewan Housing Finance Corporation Ltd.^{against the mortgage} of the schedule^property and the said^{loan was assignedin favour ofthe} Respondent herein vide Assignment^{Deed d1.27.12.2024.After availing} the loan,. the .A,pplicant committed default^{in repaying the loan dues and} so, .-the---loar:i epqAur-lt was classified as NPA^{by the Respondent.} .a.^.. " - ..^{'..-. ':...} $Ubsequently,"the^{ffCspondentinitiatedproceedingsunder the provisions} TSARFAESI Abi, 2oo2 6hd also initiated proceedings for taking physical ,^{p".u*"ti&6f ih€-tH$neafiieproperty u/s 14 of the SARFAESIAct, 2002.}

¶24

...
'
.,1:i". '
" ,;. .,i1r7 ,.il-,....-:
'-.'"
:::.*..--:.,,.

¶25

¶26

The specific contention of the Applicant is that the Respondent without serving demand notice and possession notice, straightaway initiated proceedings u/s 14 of the Act for taking physical possession of the schedule property without following the procedure and so, the said proceedings are null and void.

¶27

Per contra, Respondent contended that admittedly, the Applicant availed loan from the Dewan Housing Finance Corporation Ltd. against the mortgage of the schedule property and thereafter committed default in repaying the loan dues as per the terms of the loan agreement and so, the loan account was classified as NPA as per the guidelines of RBI. So, the Respondent issued all the mandatory notices to the Applicant by duly following the procedure contemplated under the provisions of SARFAESI Act,2OO2 and Rules made thereunder.

¶28

To substantiate their contention, Respondent filed material documents along with the Reply filed by them. As per the said documents, it is clear that the Respondent issued demand notice dt.28.O7.2O22 and the said notice was sent to the Applicant and others as evidenced by the postal track reports frled by the Respondent and the said notice was also published in two daily newspapers as evidenced by the copies of paper publication filed by the Respondent. Thereafter, the Respondent issued possession notice dt.23.02.2}23 and the said notice was served on the Applicant as evidenced by the^postal acknowledgements filed by^the Respondent. The said possession notice was published in two^daily newspapers as evidenced by the copies of^{paperpublication filed by the} Respondent and the said notice was affixed on the schedule^propertyas evidenced b.y.,!he-codes of^photographs Iiled by the^{Respondent.Thus the} followed Rule 8(1)(2) of Rules, 2OO2ⁱⁿ O2.2O23 u/s 13(4) of the Act. Thereafter,

¶29

commissioner appointed by the Ld.CJM, Khammam issued notice to the Applicant to vacate the schedule property. Challenging the said proceedings, the Applicant filed the present SA and this Tribunal granted interim conditional stay order. Accordingly, this point is answered in favour of the Respondent and against the Applicant.

¶30

Potnt tlo.(ii)r

¶31

In the result, SA 241124 is dismissed as there are no merits in^{the SA.} Consequently, the Interlocutory Applications,^pending if^{any, shall stand} disposed of. No order as to costs.

¶32

Communicate a copy of^{this order to the partiesconcerned.}

¶33

(Dctated to tlrc P.S, transcibed. bg^{her, corrected, signed and pronounced bg me in th'e open} court on this tle 2"d^{dag of September,2026)}

¶34

sd/-
b v (G. GOPI CHANDI
-1.-' PRESIDING oFFICER
ii-r.
:t; [2sEP2m Y
.\ rd !+
%.d..
-f."'r
\Na,h,..,."-+T...'
.i-,:i --" '.r, '"i't'
'11

Mr Palla Kiran Kumar v. Piramal Capital and Housing Finance Ltd.

Case brief

What is this about?

What did the court decide?

Mr Palla Kiran Kumar v. Piramal Capital and Housing Finance Ltd.

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

All orders in this case

Similar cases

Indian Overseas Bank versus Ind Cotton Garments LLP

Govardhan Sirangi versus Cholamandalam Investment and Finance Company Limited

Puspak Energy Industry versus Union Bank of India

Telangana Grameena Bank versus Thalluri Sandhya

Canara Bank versus M/S Rahul Textiles

Canara Bank versus M/S. Mallikarjun Textiles