Allowed

Ms Health Mushrooms v. Bank of Baroda

DRT13 May 2026SA/286/2026

Case brief

AI extract

What is this about?

DT-III, Chennai allowed a stay application on a bank's sale notice. The applicant deposited ₹10 Lakhs as a gesture of bona fides and to suspend the auction scheduled for 14.05.2026, subject to full compliance by the end of the business day on 13.05.2026.

What did the court decide?

Interim stay of the auction sale notice dated 26.03.2026 scheduled for 14.05.2026, provided the applicant deposits ₹10,00,000 by 13.05.2026.

Ms Health Mushrooms versus Bank of Baroda — Insurance | DRT (2026)

SA No.286/2026

13.05.2026

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 13^th day of May, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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IA No.914 of 2026

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SA No. 286 of 2026

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M/s. Health Mushrooms Rep. by Prop Mrs.J.Suganthi W/o. Mr. John Peter D.No.519/4, Somandaputhur, Vadakkumadhavi Road, Keelakkarai, Esanai, Perambalur-621219

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Mrs. J. Suganthi W/o. John Peter R/o. C-4, Indira Nagar, Elambalur, Perambalur-621219.

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Mr. John Peter S/o. Sebastian R/o. C-4, Indira Nagar, Elambalur, Perambalur-621219. …Applicant

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-Vs-

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Bank of Baroda, Perambalur Branch Rep. by its Chief Manager, Mr. Kamaraj P New Ward No.11 (Old No.6), Venkatesapuram, Trichy Road, Perambalur-621212 …Respondent Counsels on record / appeared: Counsel for Applicant : M/s. Eshwars

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Uploaded on 13.05.2026 at 01.15 p.m.

SA No.286/2026

13.05.2026

ORDER ON IA No.914/2026

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The present Securitization Application [SA] is filed 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].

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The applicant has challenged the Sale Notice dated 31.03.2026 fixing the sale on 14.05.2026 and the outstanding amount due as per Sale Notice is Rs.53,91,240.72p/-.

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The 1^st applicant is a proprietary concern represented by its proprietrix, the 2^nd applicant herein. The 3^rd applicant is the guarantor to the credit facility availed by the applicant firm. Applicant had availed various credit facilities agreeing repay as per terms and conditions and had mortgaged the two items of property by the deposit of title deeds which is not disputed. Due to the default in the repayment, the account is classified as on NPA on 31.08.2019, in spite of applicant have repaid a sum of Rs.10,78,000/-.

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Subsequently, the bank has issued in Section 13(2) Demand Notice on 26.04.2022 and have proceeded in issuing the Section 13(4) Notice under the Act. Now the bank has issued the Sale Notice dated 26.03.2026 intending to sell the property on 14.05.2026 fixing a reserve price at Rs.9,50,000/- and the sale is scheduled for tomorrow (14.05.2026).

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Uploaded on 13.05.2026 at 01.15 p.m.

SA No.286/2026

13.05.2026

The applicant has also filed an application for Stay of the Auction sale in IA No.914/2026. Counsel for the respondent bank is also present and opposes for any Stay contending that the applicant in spite of receipt of the Sale Notice did not liquidate the liability as required under Section 13(8) and have lost the right to interdict the sale which is schedule for tomorrow (14.05.2026).

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Per contra, Ld. Counsel for the applicant submits that the outstanding amount due Rs.53,91,240.72p/- for a reserve price of Rs.9,50,000/- and the applicant is ready with a Rs.10 Lakhs DD to show his bonafides. Though the bank has opposed for the sale, as the applicant voluntarily ready to show his bonafides and he is ready with the DD of Rs.10 Lakhs, the Tribunal feels it apt to grant an order of stay directing the applicant to deposit the sum of Rs. 10 lakhs before closing hours of bank today i.e., 13.05.2026.

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On compliance of the above, there shall be an interim order of Stay of the Auction Sale Notice dated 26.03.2026 scheduling the property for sale on 14.05.2026. It is made clear that if the applicant fails to make the payment of Rs.10,00,000/- on or before closing hours of bank on 13.05.2026, the interim order of stay automatically stands vacated and the respondent bank is at liberty to proceed further.

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