Dismissed

Mekala Balraj v. Hinduja Housing Finance Limited

DRT9 Apr 2026SA/83/2025

Case brief

AI extract

What is this about?

This application under Section 17 of the SARFAESI Act, 2002, challenged possession proceedings u/s 14. The Tribunal found the secured creditor duly followed statutory notice requirements (demand and possession notices via post, newspaper, and affixation) and sought orders from the Civil Judge Metro. Finding no merit in the challenge, the Tribunal dismissed the application and upheld the possession

What did the court decide?

Application for challenging possession proceedings dismissed; no merit found in the applicant's grievance.

Mekala Balraj versus Hinduja Housing Finance Limited — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERYTRIBUNAL^_ 1 AT HYDERABAD

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DATED THISTHE^gTH DAY OF APRIL, 2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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SA.No.83./2025

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Mekala Balraj, S/oHanumanthu, Aged 35 years, Occ: agriculture, R/o H.No.1-42, Bheempur village, Maddur Mandal, Narayanpet District.

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... Applicant

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Versus

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Hinduja Housing Finance Ltd., Rep. by its Authorized Officer Regional Oflice at 2nd floor, Tl9 Towers, Indira Nagar, Karbala Maidan, Ranigunj, Secunderabd-s0O 003. . .. Respondent

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Counsel for the Applicant :SnT. Sridhar Reddg Counsel for Respondent ;Sn?. Ranadhir Singh Reserued on :11.O3.2O26 Pronounced on :09.O4.2026 Uploaded on :09.04.2026

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ORDER

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1 This application is filed by the Applicant u/s. 17 of the SARFAESI Act, 2OO2, challenging the proceedings initiated by the Respondent for taking physical possession of the schedule property through Advocate commissioner pursuant to the orders of Ld.CJM, Narayanpet in Cr1. 9124 to declare the same as illegal and void.

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lpThe * *Try'fiff?ftto pn charged heavy r ,Y.,.-sfutde.,ly, o.r.if ;qS;'y.fi9r;

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e in the application, in brief, are that: housing loan of Rs.7,50,00O/- from the paying the instalments but the Respondent interest in violation of the guidelines of RBI. 025, some persons claiming to be recovery agents

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of the Respondent along with advocate commissioner visited the schedule property and demanded the Applicant to hand over the possession of the schedule property and they gave a copy of notice issued as per the orders of Id.CJM, Narayanpet in Crl.M.P.No.l9 124. The Respondent Without serving demand notice and possession notice to the Applicant, straightaway initiated proceedings u/ s 14 of the SARFAESI Act, 2OO2 for taking physical possession of the schedule property through advocate commissioner pursuant to the orders of Ld.CJM, Narayanpet though advocate commissioner and so, the said proceedings are not legal and valid.. The impugned possession notice dt.15.O7.2024 was not published in two leading newspapers and also not affixed on the schedule property. Hence the SA.

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The Respondent Iiled Reply denying all the adverse allegations made in the SA and contended that the Applicant along with his family members availed housing loan from the Respondent against the mortgage of schedule property. In view of the default committed by the Applicant, the loan account of the Applicant was classified as NpA on 06.03.2024 as per the guidelines of RBI. Thereafter, the Respondent issued demand notice dt. 19.04.2024 and the said notice was sent to the Applicant through Regd. post and the said notice was also published in two daily newspapers.. Thereafter, the Respondent issued possession notice dt.15.O7.2O24 and the said notice was sent to the Applicant and the same was published in two leading newspapers and also affixed on the schedule property. Subsequently, the Respondent proceeded u/s 14 of the SARFAESI Act, 2OO2 for taking physical possession of the schedule property pursuant to the orders of Ld.CJM, Narayanpet in Crl.M.P.No.19 124 and the advocate commissioner issued notice to the handover the possession of the schedule no violations. Accordingly, Respondent i, 0^g ipl ,0s^* 1 ,,t'h;FS

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Heard Ld. Counsel^{for the Applicantand ld.Counselfor the} Respondent. Perused^{the material brought on record'}

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Now the points that arise^{for considerationare}

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i. u.thetlrcr tle Appticant^{lrr;.s establisled ang ualid groundsfor} challerrying tle^{proceedings initiated bg tle Respondent for taking} phgsical possession of tte^{sch.edulepropertg u/ s1 4 of the SARFAESI} Act, 2OO2 through^{aduocatecommissioner?}

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ii. To what relief?

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Point .t\Io.(i):-

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Duringthecourseofarguments,td.CounselfortheApplicantandLd' counsel for the^{Respondentreiteratedtheir respectiveversions as stated} supra.

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T.TheundisputedfactsofthecasearethattheApplicantavailedhousing loanfromtheRespondentandcreatedequitablemortgageinrespectof the schedule^{property to Secure the said loan and thereafter, committed} default in rePaYing^{the loan dues.}

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8.ThespecificcontentionoftheApplicantisthattheRespondentwithout serving demand^{notice and possessionnotice, straightaway'initiated} proceedings for taking^{physicalpossessionof the scheduleproperty} through advocate^{commissioneru/s14 of the SARFAESI Act'2002} without the procedure^{and so, the said proceedingsinitiatedby} the schedule^{propertyare null and void'}

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k 9. 4^*"g+

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that the Respondent^{has duly followed} under the^{provisions of SARFAESI Act,2OO2}

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and Rules^{madethereunder and in issuingall the statutorynotices to the} Applicant and^{also in takingphysicalpossession of the schedule property} u/s 14 ofthe^{SARFAESIAct,2002.}

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To substantiate^{their contention,Respondentfiled materialdocuments} alongwiththeReplyfiledbythem'Asperthesaiddocuments'itisclear that after classifying^{the loan accountof the Applicantas NPA as per the} guidelinesofRBl,theRespondentissueddemandnoticedt'19'04'2024 u/s13(2)oftheSARAFAEsIAct,2oo2andthesaidnoticewassenttothe Applicant through^{Regd.post as evidenced by the postal track reportsfiled} bytheRespondentandthesaidnoticewasalsopublishedinTelugrrand English daily^{newspapers as evidenced by the copies of paper publication} filed by the^{Respondent. Thus there is validserviceof demand noticeon} theApplicant.WhentheApplicantfailedtocomplywiththesaidnotice, the Respondent^{issued possessionnotice dt'15'07'2024 u/s 13(4)of the} Act,2OO2 and^{the said notice was sent to the Applicant through Regd'post} as evidenced^{by the postal track reportsfrled by the Respondent' The said} possession notice^{was published in Telugu and English daily newspapers} as evidenced^{by the copies of paper publication frled by the Respondent} and the said^{notice was alsoaffixed on the schedule property as depicted} in the^{photographs filed by the Respondent Thus' the Respondent has} dulyfollowedRules(1)&(2)ofsecuritylnterest(Enforcement)Rules,2002 in issuing^{possessionnotice dt' 15'07} '2024^'

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As per the^{provisionsof Section14 of SARFAESI Act' 2002' after issuance} of possession^{notice u/s 13(a) of the SARFAESI Acl' 2OO2' the secured} liberty to approach^{the concernedDistrictMagistrate or Chief} for taking^{physicalpossession of the secured asset' In}

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in. i"#i",.:Sil\ issuing demand^{noticeand possession notice to the} nppric{?t, th. e"' ndent being^{secured creditor,approached Ld'CJM'} the SARFAESI^{Act,2OO2 by filing Crl'M'P'No'19/24} commissioner^{for taking physicalpossession}

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of the schedule property.^{Ld.CJM,Narayanpetafter considering the} material on record, appointed advocate^{commissionerfor taking physical} possession of the schedule^property and^{the said advocatecommissioner} issued notice to the Applicant to^{vacatethe schedulepropertyand} admittedly, the Applicant^{received the said notice. So, the said} proceedings initiated by the Respondent for taking^{physicalpossession of} the schedule^property are^{perfectly legal and valid.}

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So, considering all the^{circumstances,Iam of the opinion that t].e} Applicant is not entitled^{to any relief as there are no merits in the SA. So,} I see no ground warranting^{interference of this Tribunalu'iththe} proceedings initiated by the Respondent^{for taking physical possession of} the schedule^{propertyu/ s 14 of the SARFAESIAct,2002. Accordingly,this} point is answered in favour ofthe^{Respondentand against the Applicant.}

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Polnt No.(tl)r

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In the result, SA 83/25^{is dismissed as there are no merits'}

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

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Communicate^{a copy of this order to the parties concerned'}

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lDictated the P.S, transcibed bg her, corrected, signed and pronounced bg me in the open
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dog of April, 2026)
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* (G. GOPI CHAI{DICHAI{DI
O9 APB ru[ PRF,SIDING OFFICER
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(G. GOPI CHAI{DICHAI{DI PRF,SIDING OFFICER

Mekala Balraj v. Hinduja Housing Finance Limited

Case brief

What is this about?

What did the court decide?

Mekala Balraj v. Hinduja Housing Finance Limited

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Statutes considered

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