Dismissed

Akkapaly Mahesh v. Home First Finance Company India Limited

DRT9 Apr 2026SA/469/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal-IIT Hyderabad dismissed the applicant's Securitization Application seeking to set aside the respondent bank's initiation of physical possession proceedings under the SARFAESI Act due to default on home loan, finding no infraction of statutory procedure.

What did the court decide?

No order as to costs. Interlocutory Applications pending, if any, shall stand closed.

Akkapaly Mahesh versus Home First Finance Company India Limited — Specific Performance | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-II AT^HYDEMBAD

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DATED THIS THE O9TH DAY OF APRIL,²⁰²⁶

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PRESENT: SH. MMESHWAR KOTHE,^{B'Com., L.LB' (Hons'), M.A.} PRESIDING OFFICER

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Securitization Application No'469^{OF 2025}

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Akkapally Mahesh S/o A. Srinivas, aged about²⁵ Years Occ: Private Employee,^{R/o H.No.2-39} Yadaram, Medchal, Ranga^{Reddy Dist. 501401}

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.......Applicant.

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Versus

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Home First Finance Company^{India Ltd} Branch Office at Office No.405,⁴⁰⁶ Navaketan Complex, SD^Road Secunderabad, Hydera^{bad 500003}

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......Respondent.

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Counsel for the Applicant :^{Mr. R. SravanKumar} Counsel for Respondent^{: Mr. K. Raiani}

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-:g-RD-E-B:-

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Applicant filed the^{present SecuritisationApplicationuls t7 of} the Securitization and^{Reconstruction of Financial Assets and} Enforcement of security^{Interest Act, 2002 (hereinafter referredto as} "Act, 2002") assailing the^{measuresof the respondentagainst SA} schedule^{property pursuant to advocate commissionervacatenotice} dated 14.10.2025 in^{Crl.MP No.2912025 on the flle of learned} principal senior civil Judge cum Addl. chief Judicial Magistrate, Medchal-Malkajgiri^Dist at^Kushaiguda.

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The case of the applicant, in^{brief, is that he availed home loan} of Rs.15 lakhs from^{respondentand repqid Rs.6 lakhs till date'} @y'.outuU'

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sA No.469/202s

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However due to^{financial constraintson account of medical expenses} of mother and^{business losses,he could not payEMIS in time'} Without considering^{requests, respondent declared the accountas} NPA without^prior intlmation.^{Without servingany noticesunder} Sec.13(2), respondent^{resorted to initiateactionto take physical} possession of subject^{property. Hence this sA.}

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The respondent^{filed reply statementwith documentsThe} averments, briefly,^are that^{loan was sanctionedon 15.11'2023and} applicant signed^{loan agreementon 24.11.2023.since applicant failed} to make repayment as^{per agreedterms,respondent classifledthe} account as NPA on 05.03.2025^{as per RBI guidelines.Multiples} notices were sent intimating^{about default before issulng Sec.13(2)} and 13(4) notices.^{Demand notice dated 05.03.2025 was servedon} applicant and also^{got published. As there was no repayment or} recelpt of objections,^{respondentissuedpossession notice dated} 07.O5.2025, sent by^{registeredpost to the applicant, published in} 'Nava Telangana' and 'Financial^{Express' Telugu and English} newspapers and affixed on^{securedasset.Respondent hasfollowed} due^procedure of law and^{hence SA is liable to be dismlssed.}

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Right of applicant advancing arguments^{was forfeitedon} 17.O3.2026 as no representation^{despitegranting opportunityHeard} learned counsel for the respondent.^Perused the^{materlaldocuments} brought on record.

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Learned counsel for the respondent^reiterated the^{version as in} the reply statement that, due to defaults^{the account was declaredas} NPA in terms of RBI^{guidelines. Despite} multiple^{noticesabout NPA,} applicant did not respondent hence^the Ie-spondent^lnitiated M*

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3of4

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sA No.459/202s

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SARFAESI action by issuing/serving the demand notice. With^no payment and no objections received, respondent issued^possession notice, sent it by registered^post to applicant,^{got affixed on secured} asset and^published in English and^{Telugu newspapers in accordance} with law. As the applicant failed to deliver^{physical possessionof the} schedule property, the respondent approached learned^Principal Senior Civil ludge-Cum-Addl. Chief Judicial^{Magistrate by filing Crl.MP} No.2912025 seeking appointment of advocate^{commissioner.While} relying on the documents flled along with reply statement^{as proof of} due compliance of^procedure, learned counsel^{soughtfor dismissal of} the SA with costs.

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The points for consideration are as follows : -

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(i) Whether the Applicant made out any valid ground for setting aside the action of respondent for taking^{physical possession} of^the SA schedule^property, as^{prayed for?}

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(ii) To what relief?

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Point No.^(i):

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Admittedly the applicant availed^{home loan} of^{Rs.15 lakhsfrom} respondent company and committed default^{in repaymentfor reasons} whatsoever. Mortgage in respect of SA^{schedule property is not ln} dispute. Hence classifying the account as^{NPA and initiation of} Securitization^proceedings cannot be^{termed as illegal or arbitrary}

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The respondent filed material documents^{along with reply} statement as^proof of following due^{procedure.Pages2 to 9 annexed} thereto amply^prove that demand^{notice was served and published;} possession notice was sent by registered^post tq applicant and^others, /7%rl" L./ U,

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sA No.469/2025'

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duly^{published,andaffixed on secured asset'None of the documents} is disputed by^{the applicant. Ifind absolutelyno infraction of} Secs.13(2) and^{13(4) of the Act or Rules 3, B(1) and B(2) of the} Rules, 2002.

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g.Beingsecuredcreditor,therespondentisentitledunderSec.14 of the Act, 2002^{to take physicalpossessionof secured asset'} AccordinglyitfiledCrl.MPNo'29/2025beforelearnedPrincipalSenior Civil Judge-Cum-Addl.^{Chief Judicial Magistrate seeking appointment} of advocate^{commissionerfor takingphysicalpossessionof secured} asset. such action^{cannotbe interdictedwithout any valid ground.} Accordingly, the^{SA is liable to be dismissed'}

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Point No.(ii):

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10, In the result,^{the Securitization Applicationfails and is hereby} dismissed.

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