Dismissed

Neethi Raj R v. Dcb Bank Limited

DRT28 Jan 2026SA/253/2023

Case brief

AI extract

What is this about?

In an application under Section 17 of the SARFAESI Act challenging an e-auction sale, the Tribunal upheld the validity of the bank's measures. It found the bank had complied with all procedural requirements regarding notices and auctions. The sale and sale certificate were held valid as the applicants failed to specify any infirmities in the proceedings.

What did the court decide?

The Securitization Application under Section 17 of the SARFAESI Act was dismissed; all interim orders and pending interim applications are vacated/disposed of in terms of this order.

Neethi Raj R versus Dcb Bank Limited — Execution and Attachment | DRT (2026)

SA No.253/2023

28.01.2026

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 28^th day of January, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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SARFAESI APPLICATION No. 253 of 2023

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Neethi Raj. R, Old No.965, New No.7, 66^th Street, 11^th Sector, K.K. Nagar, Chennai -600 078.

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Divyapriya. N

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Old No.965, New No.7, 66^th Street, 11^th Sector, K.K. Nagar, Chennai -600 078. ….Applicants -Vs-

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The Authorized Officer, M/s. DCB Bank Limited, Rep. By its Authorised Officer Mr. R. Srinivasan, Company having registered office at, 6^th Floor, Tower A, Peninsula Business Park, Senaparibapat Marg, Lower Parel, Mumbai 400 013. Branch office at, No.6, Rajaji Road, Opp. Tennis Stadium,

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Nungambakkam, Chennai -600 034. ….Respondent

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Counsels on record / appeared:

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Counsel for Applicant : M/s. S. Vennila Counsel for respondent : M/s. R. Chandramohan

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ORDER ON SA 253/2023

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The present Securitization Application [SA] is filed on 26.04.2023 under sub section [1] of S.17 of the Securitization And Reconstruction of Financial Asset and Enforcement of Security Interest Act,2002 (for short the ‘Act’) challenging the action and the measure taken by the secured creditor under the Security Interest Enforcement Rules, 2002 [for short the Rules].

SA No.253/2023

28.01.2026

The applicant has challenging the Sale held on 31.03.2023 in pursuant to E-Auction Sale Notice dated 14.03.2023 and the outstanding amount due as per Sale Notice is Rs.68,12,515/- due as on 09.03.2023.

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It is the case of the applicants a Doctor had availed loan of Rs.55 Lakhs from the respondent bank on 14.03.2023 and mortgaged the property situated at Old No.695, New No.7, 66^th Street, 11^th Sector, K.K. Nagar, Chennai -600 078.

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It is submitted that the applicant was paying the EMI promptly and has paid a sum of Rs.2 Lakhs on 03.03.2023 and Rs. 2 lakhs on 21.03.2023 and Rs.5 Lakhs on 23.03.2023 and due to financial crisis defaulted in repayment and approached the bank with OTS proposal which was accepted on 08.02.2023 and the last date of payment is on 28.02.2023.

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To applicant’s shock and surprise respondent has issued E-Auction on 06.02.2023 fixing the e-auction on 14.03.2023 without serving the S.13]4] notice and without issuing the statement of account enabling the appellants to repay the borrower amount.

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It is contended that pursuant to the possession notice the respondent forcefully entered the property where applicant is residing in violation of the Act. The respondent without adjusting the payments made has charged interest and penal interest against the RBI guidelines has classified the account as NPA. Hence all the measures taken by the respondent in issuing demand notice, possession notice are contrary to law and justice.

SA No.253/2023

28.01.2026

In the grounds, it is contented that the respondent has not followed the procedures under Rule 8(1) of the SIE Rules. The Authorized officer of the respondent has not affixed the possession notice nor has published the possession notice in two newspapers as per Rule 8(2) of SIE Rules. The possession notice does not contain proper measurement and identification of the secured asset. On these grounds the applicants prays to set aside the Sale Notice dated 14.03.2023.

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The respondent bank in their counter contend that the 1^st applicant had availed Business Loan for Rs.55 Lakhs to be repaid in 120 EMIs payable at Rs.74,523/- beginning from 14.11.2019 onwards with a variable rate of interest of 10.6% p.a. with monthly rest was sanctioned on 27.09.2019 and executed a Business Loan agreement on 28.09.2019.

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The applicants committed default in repayment of the loan amount and the loan account was classified as NPA on 31.07.2021 in accordance with directions of RBI guidelines. Hence, the bank had issued the Sec.13(2) Demand Notice dated 18.11.2021 to the applicants and both the notices were duly served on the applicants on 24.11.2021.

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Despite receiving the demand notices, as payments were not forthcoming from the applicants the respondent took possession of the secured assets under section 13(4) of the SARFAESI Act on 07.04.2022 by affixing the notice on the property as evidenced through a photo and serving it and the same was received by both the applicants on 13.04.2022. The possession notice was published in two newspapers one in English “The

SA No.253/2023

28.01.2026

New Indian Express” and another one in Tamil “Dinamani” both dated 09.04.2022 as mandated under the SARFAESI Act and Rules. Hence, the averments in para no.7 are incorrect and denied.

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The respondent proceeded with E-Auction Sale Notice dated 16.02.2023, however sale did not take place for wand of bidders. Subsequently the respondent proceeded with a 2^nd E-auction sale notice dated 14.03.2023 fixing the e-auction on 31.03.2022 which was served by registered post with acknowledgement on 15.03.2023. The e-auction sale notice was published in two newspapers one in English “The New Indian Express” and another one in Tamil “Dinamani” both dated 15.03.2023 and same was also affixed on the conspicuous part of the secured assets and Mrs. Radhika Saravanan was declared as successful bidder for Rs.1,05,54,500/- and bid was confirmed on 31.03.2023.

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Therefore, the respondent issued Sale Certificate on 10.04.2023 in favour of the Mrs. Radhika Saravana, W/o. Saravanan in favour of the successful auction purchaser. The respondent took physical possession under section 14 of the SARFAESI Act on 05.05.2023 and issued notice to remove the inventory, movables, belongings and documents published a final remainder notice in English “Business Standard” and in Tamil “The Hindu” daily publication to remove all the belongings in presence of the Authorized Officer of the respondent. The respondent has handed over all the original documents on 17.05.2023 to the auction purchaser.

SA No.253/2023

28.01.2026

It is submitted that the OTS was accepted, after the e-auction sale notice was issued on 06.02.2023 the applicant wanted a foreclosure statement which indicated the total amount of Rs.72,03,940.81 valid till 28.02.2023 and the foreclosure letter dated 08.02.2023 after issuance of the E-auction sale notice. As the respondent have followed all the procedures in accordance with act prays for dismissal of the SA.

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Heard both sides of the Counsels and perused the records of the case

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It is manifest from the records that the 1^st applicant had availed Business Loan for Rs.55 Lakhs to be repaid in 120 EMIs at Rs.74,523/beginning from 14.11.2019 onwards with a variable rate of interest of 10.6% p.a. with monthly rest was sanctioned on 27.09.2019 and executed a Business Loan agreement on 28.09.2019. To secure the credit facilities availed, applicant has executed the Memorandum of Deposit of Title Deeds dated 01.10.2019 vide Doc.No.6139 of 2019 which is registered in the office of the Sub Registrar Virugambakkam produced at pg.18-33.

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In fact, the applicant does not dispute the availing of the facilities and the mortgage of the property including the default in the repayment. Due to continuous default in the repayment, the loan account of the applicant was classified as NPA on 31.07.2021 in accordance with RBI guidelines.

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The respondent had issued the Sec.13(2) Demand Notice dated 18.11.2021 claiming an amount of Rs.58,41,325/- due as on 28.10.2021 along with other charges. The demand notice is sent by RPAD which the

SA No.253/2023

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applicant has received the Demand Notice as per the Acknowledgement card produced at Pg.37 and 38 of counter. In spite of receipt of Sec.13(2) demand notice as the borrower and the guarantor did not liquate the liability, the respondent issued the Sec.13(4) Possession Notice on 07.04.2022, which was duly served, as per Acknowledgement Cards produced at Pg.42 and 43 of counter, and affixture of Possession Notice produced at Pg.41 evidences due service of Possession Notice. Possession Notice is also published in two newspapers one in English “The New Indian Express” and another one in Tamil “Dinamani” both dated 09.04.2022.

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It is seen that the secured creditor has obtained tow valuation report from their approved valuer -first Valuation Report dated 30.10.2021 is produced at Pg.46-51 and another valuation report dated 28.02.2023 produced at Pg.52 and 53.

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It seen that 1^st E-Auction Sale Notice dated 16.02.2023 did not take place for wand of bidders. Subsequently respondent has proceeded with a 2nd E-auction sale notice dated 14.03.2023 fixing the e-auction on 31.03.2022 duly served by registered post with acknowledgement on 15.03.2023 and acknowledgement cards produced at Pg.57 and 58 of counter. Further e-auction sale notice was published in two newspapers one in English “The New Indian Express” and another one in Tamil “Dinamani” both dated 14.03.2023 and also affixed on the conspicuous part of the secured assets as evident from Pg.61.

SA No.253/2023

28.01.2026

The sale is successfully held and Mrs. Radhika Saravanan was declared as successful bidder for Rs.1,05,54,500/- and bid was confirmed on 31.03.2023. The respondent issued Sale Certificate on 10.04.2023 in favour of the Mrs. Radhika Saravana after receipt of entire sale consideration. The respondent has handed over all the original documents on 17.05.2023 to the auction purchaser and Registered Sale Certificate dated 25.05.2023 vide Doc.No.8017 of 2023 which is registered in the office of the Sub Registrar Virugambakkam produced at pg.69-86.

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The respondent took physical possession under section 14 of the SARFAESI Act on 05.05.2023 and issued notice to remove the inventory, movables, belongings and documents published a final remainder notice published in two newspapers one in English “Business Standard” and another one in Tamil “The Hindu” both dated 11.05.2023.

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Though the applicant has challenged the sale notice dated 14.03.2023 has not pointed out any infirmities in the issuance of sale notice or in conducing the auction. On the other hand the respondent as secured creditor has followed the procedures in issuing the statutory notice and sale notice as prescribed and required under the Act and Rules and have established the due compliance of the procedures as mandated.

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Therefore, the Tribunal concludes that the measure taken by the respondent bank in issuance of Section 13(2) Demand Notice dated 18.11.2021 and Section 13(4) Possession notice dated 07.04.2022 are held as valid notices and the Sale Notice dated 14.03.2023; sale held on

SA No.253/2023

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31.03.2023 and Sale Certificates dated 10.04.2023 issued favoring auction purchaser are in accordance with the procedures as required under the Act and Rules made thereunder and same are held as valid measures.

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For the foregoing reasons, the present SA is dismissed. Interim Order granted, if any stands vacated, pending IAs are disposed of in terms of this final order. No order as to cost. Sd/-

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(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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( Dictated to Steno (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 28^th day of January, 2026)

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LIST OF DOCUMENTS PRODUCED BY THE APPLICANT

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Sl. No.	Descriptio	n of Documents		Documents No.
1.	OTS Letter issued 08.02.2023.	by the respondent	dated	A-1
2.	Auction Sale of 16.02.2023.	Property Notice	dated	A-2
3.	Receipt of paymen 03.03.2023.	t of Rs.2,00,000/-	dated	A-3
4.	Receipt of paymen 21.03.2023.	t of Rs.2,00,000/-	dated	A-4
5.	Receipt of paymen 23.03.2023.	t of Rs.5,00,000/-	dated	A-5
6.	Auction Sale of 14.03.2023.	property notice	dated	A-6

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LIST OF DOCUMENTS PRODUCED BY THE RESPONDNET

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Sl. No.	Description of Documents	Documents No.
1.	Sanction Letter dated 27.09.2019.	R-1
2.	Memorandum of Deposit of Title Deeds executed by the 2^ndapplicant registered as Doc.No.6139 of 2019 dated 01.10.2019.	R-2
3.	Demand Notice issued under section 13(2) of the SARFAESI Act dated 18.11.2021.	R-3
4.	Postal Acknowledgement cards served on the applicants.	R-4

SA No.253/2023

28.01.2026

5.	Possession Notice issue by the Respondent dated 07.04.2022.	R-5
6.	Affixture of the Possession Notice.	R-6
7.	Postal Acknowledgement card served on the Applicants.	R-7
8.	Paper Publication in The New Indian Express ( English) and Dinamani (Tamil).	R-8
9.	Valuation Report dated 30.10.2021.	R-9
10.	Valuation Report dated 28.02.2023.	R-10
11.	E-Auction Sale Notice dated 14.03.2023.	R-11
12.	Postal Acknowledgement of Sale Notice dated 15.03.2023.	R-12
13.	Newspaper Publication of Sale Notice in The New Indian Express and Tamil Daily Dinamani.	R-13
14.	Affixture of Sale Notice.	R-14
15.	Acceptance of Bid Confirmation Letter dated 31.03.2023.	R-15
16.	Sale Certificate issued in favour of Auction purchaser dated 10.04.2023.	R-16
17.	Notice to remove inventories and movables lying in the premise of the Applicants dated 06.05.2023.	R-17
18.	Newspaper publication of the final Remainder Notice to remove the articles and movables lying inside the premises of the applicants in Business Standard and (English) and Hindu Tamil Daily (Tamil) dated 11.05.2023.	R-18
19.	Letter from the auction purchaser on receiving the original documents dated 17.05.2023.	R-19
20.	Registered Sale Certificate, Document No.8017 of 2023-SRO-Virugambakkam dated 25.05.2023.	R-20
21.	Statement of Accounts for DRBLCHE00492356 dated 08.08.2023.	R-21

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SCHEDULE OF PROPERTY

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All that piece and parcel of land together measuring an extent of 880 Sq.ft., comprised in S.No.248 Part, bearing Plot No.AP-965 in Sanctioned Plan of the Madras KK Nagar Housing Scheme, 11” Sector, 66^th Street, West K.K. Nagar, Chennai -78 Virugambakkam Village, Mambalam Taluk, Chennai district KK Nagar, Chennai 600 078, Situated Chennai District and bounded on the:

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North by : 30 Feet Road,

SA No.253/2023

28.01.2026

South by : AP-972 East by : AP-966 West by : AP-964

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Situated at within the Sub-Registration of Virugambakkam and Registration District of South Chennai.

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Sd/-

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(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

Neethi Raj R v. Dcb Bank Limited

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Neethi Raj R v. Dcb Bank Limited

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