DRAT Chennai Bars City Union Bank's Belated Challenge To Delayed Written Statement In ₹14 Crore Recovery Case

The Debts Recovery Appellate Tribunal (DRAT) at Chennai has recently set aside an order striking off a written statement filed by borrowers beyond the prescribed 45-day period in a recovery case initiated by City Union Bank for about ₹14 crore.It held that the bank lost its right to challenge the delayed filing after participating in the proceedings without objection and raising the issue only after the Madras High Court remanded the matter. A bench of Chairperson Justice G. Chandrasekharan...

DRAT Chennai Restores Civil Arrest In ₹15.14 Cr Kotak Mahindra Bank Recovery, Holds Insolvency No Bar

The Chennai Bench of the Debts Recovery Appellate Tribunal (DRAT) on 19 June held that an adjudication of a judgment debtor as an insolvent does not, by itself, grant immunity from civil arrest unless a protection order is obtained under Section 25 of the Presidency-Towns Insolvency Act, 1909, and that civil arrest can be sustained where statutory conditions are not met. A Bench led by Chairperson Justice G. Chandrasekharan allowed Kotak Mahindra Bank's appeal, set aside the order of the Debts...

Burden Shifts To Complainant Once Accused Proves Discharge In Cheque Bounce Case: Kerala High Court

The Kerala High Court on 30 June held that in a prosecution under Section 138 of the Negotiable Instruments Act, once the accused proves discharge of the underlying debt, and the complainant asserts that such repayments relate to a different transaction, the burden shifts to the complainant to establish that assertion. Justice A. Badharudeen dismissed an appeal filed by the complainant and upheld the acquittal of the accused passed by the Trial Court. He held: “Once plea of discharge is proved...

Kerala High Court Sets Aside KFC Auction Sale, Says Purchaser Cannot Be Financed Against Same Property

The Kerala High Court on 29 June held that the Kerala Financial Corporation (KFC) cannot finance the purchase of an auctioned property by advancing a loan against the security of the very same property, as such a course violates its statutory duty to secure the best possible price for the mortgaged asset. A Division Bench of Justices A.K. Jayasankaran Nambiar and Preeta A.K. set aside the auction sale conducted by KFC after finding material irregularities in the sale process, and directed it to...

DRAT Chennai Refuses To Condone Over 6-Year Delay In ₹115.39 Crore Recovery Appeal

The Chennai Bench of the Debts Recovery Appellate Tribunal (DRAT) has refused to condone a delay of more than six years (2417 days) in challenging a recovery order, finding that the appellant's plea of ignorance of the proceedings was untenable after notices were returned unclaimed and she later sought one-time settlements to secure the release of the mortgaged property.The tribunal, comprising Chairperson Justice G. Chandrasekharan, found that the appellant's claim that she had never been...

DRAT Allahabad Upholds Quashing Of SBI SARFAESI Auction Over First Sale At Distress Value

The Debts Recovery Appellate Tribunal (DRAT) at Allahabad has upheld an order setting aside a SARFAESI auction sale after finding that the State Bank of India fixed the reserve price of the secured asset at its distress value for what was legally the first sale. It also held that the bank failed to establish compliance with the mandatory requirements relating to service, affixation and publication of the auction notice. The tribunal was presided over by Chairperson Justice R. D. Khare. It...

Kerala High Court Dismisses Cholamandalam Appeal, Reiterates Threshold For Intra-Court Appeals

The Kerala High Court on 19 June dismissed a writ appeal filed by Cholamandalam Investment and Finance Company Limited after holding that a purely procedural interim order, which does not affect substantive rights or cause serious prejudice, cannot be appealed under Section 5(i) of the Kerala High Court Act, 1958. A Division Bench of Justices Anil K Narendran and Muralee Krishna S ruled that an intra-court appeal lies only against orders that substantially affect the rights or liabilities of...

DRAT Mumbai Rejects Bank Of Maharashtra's Appeal Over Failure To File Certified Copy Of The DRT Order

The Mumbai Bench of the Debts Recovery Appellate Tribunal (DRAT) has dismissed Bank of Maharashtra's appeal against a Debts Recovery Tribunal (DRT) order directing restoration of possession of mortgaged property to borrowers after holding that the appeal was not maintainable because the bank failed to file the certified copy of the impugned order. Chairperson Justice Vivek Bharti Sharma observed that, in the absence of the certified copy of the detailed DRT order, the appeal could not be...

DRAT Chennai Upholds Order Allowing Bank To Take Possession Of Mortgaged Property Despite Later Payments

The Chennai Bench of the Debts Recovery Appellate Tribunal (DRAT) recently upheld an order permitting City Union Bank to take physical possession of a mortgaged property. It ruled that payments made by a borrower after recovery proceedings had commenced could not affect the validity of an order passed after complying with the requirements of the SARFAESI Act. The tribunal, comprising Chairperson Justice G. Chandrasekharan, dismissed an appeal filed by Gelind Tech Consultants. “Subsequent...

NCLAT Appeal Not A Bar On Swiss Challenge Auction By Bank: Madras High Court

The Madras High Court on 22 June held that the pendency of an appeal before the NCLAT does not, by itself, bar a bank from proceeding with the transfer of loan exposure or auction of secured assets through the Swiss Challenge Method, reiterating that courts will not ordinarily interfere in commercial banking decisions unless they are shown to be arbitrary or illegal. A Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan dismissed a plea challenging...

Lending Public Money Without Efforts To Recover It Is 'Not Acceptable'; SC Issues Notice On Plea Seeking Probe Into JKM Infra

Calling it a "deep-rooted nexus" between banks, Asset Reconstruction Companies (ARCs), and borrowers, the Supreme Court on Friday said it was "not acceptable" for public money to be lent and then not effectively recovered. The remarks came as the Court issued notice on a PIL seeking a court-monitored probe into the settlement of JKM Infra Projects Ltd's ₹1,537 crore debt for ₹73.50 crore through the ARC route. A vacation bench of Chief Justice Surya Kant and Justice V. Mohana heard the matter...

Karnataka High Court Upholds Special Court Attachment Under KPIDFE Act, Rejects Canara Bank Challenge

The Karnataka High Court on 10 June 2026 dismissed an appeal filed by Canara Bank against a Special Court order that had made absolute an interim attachment under the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (KPIDFE Act). A Division Bench of Justices Anu Sivaramman and Venkatesh Naik T dismissed the appeal filed by Canara Bank and upheld the Special Court's order. It held that a secured creditor who has constructive notice of an attachment cannot...