Dismissed

Govardhan Sirangi v. Cholamandalam Investment and Finance Company Limited

DRT1 Sept 2026SA/587/2025

Case brief

AI extract

What is this about?

In an application under section 17 of the SARFAESI Act, 2002, the applicant challenged possession proceedings initiated by the secured creditor. The tribunal held that the creditor followed due process for demand and possession notices and upheld the initiation of possession proceedings under section 14.

What did the court decide?

Application dismissed; proceedings for taking physical possession u/s 14 of the SARFAESI Act, 2002 upheld.

Govardhan Sirangi versus Cholamandalam Investment and Finance… — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERYTRIBUNAL_ I AT HYDERABAD DATED THIS THE 1^ST DAY OF SEPTEMBER, 2C26

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PRESENT: SRI GUMMADI GOPICHAND; PRESIDING OFFICER

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SA.No.587,/2c25

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Sri Govardhan sarangi, S/o Rajaiah Sarangi Aged 37 years, Occ:business, R/o 6-1 12 I 6, rnairl road, Bhupalapally Jaya Shankar District Telangana-506 169.

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... Applicant

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Versus

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Cholamandalam Investment & Finance Company Ltd., Rep. by its Authorized officer 3.d floor, D.No.2-1-127 5, Lopamudra Arcade Mall, Naimnagar Main Road, Hanamkonda, Warangal-506009

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... Respondent

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Counsel for tle Applicants : Si Arun Kumar S. Counsel for Respondent : M/ s Vislnu Grouer & Associates

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Reserued on : 15.O7.2026 Pronounced on : O1.09.2O26 Uploaded on :01.09.2026

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ORDER

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l. This application is filed by the Applicant u/s. 17 of the SARFAESI Act, 2002, challenging the proceedings initiated by the Respondent for taking physical possession of the schedule property through Advocate -99tlntfs1-o,]Ib\r-€ursuant^{to the ordersofLd.CJM,Jayashankar} fr1,"tWu,,l""jilyl.1ftr.u.e.No.28l2s^{and to declarethe same as illegal} .7,.-'""aud-^'fr\ i:^* n 4^{q:: -.': t} #\Tll ,: U^I -. ,rii ii. "1 fl..:, ff,. --'^-:,: --, "u....r,"..tnddte;in .' - '. i' the application, in brief, are that: ",. i ,.- . .: '.' 'l. , .,.:,.11

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Applicant availed LAP loan^to a^{tune of Rs.45 lakhs fromthe} Respondent, in the year 2022 and^{the Applicant was payingthe} instalments regularly. The^{Respondentcharged exorbitant interest'} Without serving demand notice^{and possessionnotice to the Applicant'} the Respondent straightaway^{proceeded for taking physicalpossession} of schedule property^{pursuantto the ordersof Ld.CJM,Jayashankar} Bhupalapally and the advocate^{commissioner issued vacate notice to} the Applicant to handover^{the possessionof the schedule property} which is illegal and arbitrary^{and so, the said proceedings are not legal} and valid. Hence the SA.

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The Respondent filed their^{Reply denying all the adverseallegations} made in the SA and contended^{that Applicant along with his wife as co-} borrower, availed loan of^{Rs'45 lakhs from the Respondent and the} Applicant created mortgage against^{the schedule property and} thereafter, the Applicant committed^{default in repaymentof loandues'} So, the Respondent classihed the^{loan accountof the Applicant as NPA} on O3.O1.2025 as^per the^{guidelines of RBI. Thereafter, the Respondent} issued demand notice^dt.O7 .O1.2O25 and^{the said notice was also} published in two daily newspapers. Thereafter'^{the Respondent issued} possession notice dt.21. 06.2025 by duly^{following the procedure.} Thereafter, the Respondent^proceeded u/s^{14 of the Act, 2OO2 an'd} obtained orders from the^{Ld.CJM, Jayashankar Bhupalapallyfor} appointment of advocate commissioner^{for taking physical possession} of the schedule^property and the^{saidadvocate commissionerissued} notice to the Applicant to^{vacatethe schedule propertyand thus there} Accordingly, Respondent^{prayedto dismiss the SA.}

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for the Applicant and Ld.Counsel for^the the materiai brought on record. arise for consideration are

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i. whether the Applicant has established ang ualid grounds for challenging tte proceedings initiated bg the Respondent for taking phgsical possession of the schedule propertg u/s 14 oftlrc SARFAES/ 4ct,2002?

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ii. To what relief?

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Point No.(i):-

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

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7 . The undisputed facts of the case are that the Applicant availed loan from the Respondent and created mortgage against the schedule property and thereafter, committed default in repaying the loan dues and so, the Respondent initiated proceedings under the provisions of SARFAESI Act, 2OO2 for taking physical possession of the schedule property through advocate commissioner.

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The specific contention of the Applicant is that the Respondent without serving demand notice and possession notice, straightaway, initiated proceedings for taking physical possession of the schedule property through advocate commissioner u/s 14 of the SARFAESI Act, 2OO2 arld so, the said proceedings are null and void.

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Per co ed that the Applicant committed default in repa the loan dues ar{fi-3{ the loan account was classified as NPA as per guidelines of _RBI the Respondent issued demand notice, ion'notice to the , t by duly following the procedure as ed under the provisjons of SARFAESI Act,2OO2 and Rules made

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thereunder and also initiated proceedings u/s 14 of the SARFAESI Act, 2OO2 for taking physical possession of the schedule^{property through} advocate commissioner by following due^process of^law.

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To substantiate their contention, Respondent hled material^documents along with the Reply frled by them. As per the said documents, it^{is clear} that the Respondent issued demand notice dt.O7.Ol.2025 u/s^{13(2)of the} SARAFAESI Act,2OO2 and sent the said notice to the^{Applicant through} Regd. Post as evidenced by the postal track reports filed 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.^Thus there is valid service of demand notice on the Applicant.^Whenthe Applicant failed to comply with the said demand notice, the^Respondent issued possession notice dt.21.06.2025 u/s 13(4) of the Act, 20o2^{and the} said possession notice was sent to the Applicant and others through Regd.post as evidenced by the postal track reports filed by the Respondent. The said notice was published in Telugu and English daily newspapers as evidenced by the copies of paper^publication filed by the^{Respondent and} the said notice was afhxed on the schedule^property as depicted^{in the copy} of photograph filed by the Respondent. Thus, the Respondent^has scrupulously followed the procedure laid down under the^provisions of SARFAESI Act,2OO2 and Rules made thereunder in issuing^possession notice dt.21.06.2025 u/s 13(a) of the Act.

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1.) ns of Section 14 of SARFAESI Act, 2002, after issuance ce u/s 13(a) of the SARFAESI Act, 2OO2, the secured approach the concerned District Magistrate or Chief r taking physical possession of the secured assets. issuing demand notice and possession notice to Respondent being secured creditor, approached Ld.CJM, Jayashankar Bhupalapally u/s 14 of the SARFAESI Act,^2OO2by filing Crl.M;P.No.28/25 for appointment of advocate commissioner for

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taking physical possession of the schedule property. The said advocate commissioner issued vacate notice to the Applicant and the same was served on the Applicant and so, the said proceedings are perfectly legal and valid. However, the advocate commissioner did not execute the warrant in view of the stay granted by this Tribunal.

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So, considering all the circumstances, I am of the opinion that the Applicant is not entitled to any relief as there are no merits in the SA. So, I see no ground warranting interference of this Tribunal with the proceedings initiated by the Respondent for taking physical possession of the schedule property u/s 14 of the SARFAESI Act,2002. Accordingly, this point is answered in favour of the Respondent and against the Applicant.

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Point No.(11)r

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In the result, SA 587/25 is dismissed as there are^{no merits.}

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Consequently, the Interlocutory Applications,^pending if^{any, shall stand} disposed of. No order as to costs.

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

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(Dtctated to the P.S, transcibed bg her, corrected, signed^{and pronouncedby me in the open} couri on this the l daA of September,2026)

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sd/-
lG. GOPICHANDI
PRESIDING OFFICER
coP
OW:
Ass{.
OP:,1. HYAENI$AD.

Govardhan Sirangi v. Cholamandalam Investment and Finance Company Limited

Case brief

What is this about?

What did the court decide?

Govardhan Sirangi v. Cholamandalam Investment and Finance Company Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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