Wife Claiming Residence Rights In Mortgaged Property Need Not Make SARFAESI Pre-Deposit For Appeal: DRAT Delhi

A wife claiming a right to reside in a mortgaged property as her shared household is not required to make the statutory pre-deposit to pursue an appeal under the SARFAESI Act, the Delhi Bench of the Debts Recovery Appellate Tribunal (DRAT) has held. The tribunal, however, ruled that her claim under the Protection of Women from Domestic Violence Act, 2005, could not defeat HDFC Bank's right to enforce its security interest over the property. A tribunal headed by Chairperson Justice Sudhir...

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...

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...

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...

DRAT Kolkata Upholds Rejection of Bank-Borrower Settlement That Kept Auction Purchaser In the Dark

The Kolkata bench of the Debts Recovery Appellate Tribunal (DRAT) has upheld a DRT order refusing to accept a settlement between Indian Bank and its borrower. It found that the auction purchaser was kept in the dark despite being a party to the proceedings and despite a final order directing refund of the auction consideration having attained finality. Chairperson Justice Anil Kumar Srivastava observed: “When the order dated 07.03.2024 was passed by Learned DRT on merits setting aside the...

DRAT Kolkata Holds Administrative Lapses Not 'Sufficient Cause', Dismisses Karur Vysya Bank Appeal

The Kolkata Bench of the Debts Recovery Appellate Tribunal (DRAT) on 20 May dismissed Karur Vysya Bank's appeal as time-barred and held that internal administrative issues such as officer retirement, departmental relocation, and procedural delays do not amount to “sufficient cause” under Section 5 of the Limitation Act, 1963 for condoning delay. A Bench comprising Chairperson Justice Anil Kumar Srivastava refused to condone a 194-day delay in filing the appeal. It observed: “Law is very well...

Failed Auctions, Litigation Concerns Cannot Depress Secured Asset Value Under SARFAESI: DRAT Chennai

The Debts Recovery Appellate Tribunal (DRAT), Chennai, on 13 May held that a mere apprehension of litigation and the failure of earlier auctions cannot, by themselves, justify a substantial reduction in the market value of a secured asset. A Bench presided over by Justice G. Chandrasekharan allowed the appeal filed by ITG Energy Ltd. and others and set aside a SARFAESI auction conducted by CSB Bank after finding that the borrower's property had been grossly undervalued and sold through a flawed...

DRAT Chennai Orders Return of Original Title Documents Of Secured Asset Sold Under SARFAESI To Lender

The Chennai Bench of the Debts Recovery Appellate Tribunal recently directed the Debts Recovery Tribunal in Madurai to return original title documents to State Bank of India in recovery proceedings against Rukmini Mills and others, after finding that there was no reason to retain them once a 1.80-acre property was sold for 66 crore under the SARFAESI Act in 2017 and the sale had attained finality. A Bench of Chairperson Justice G. Chandrasekharan observed, “When the property is sold under...

Proper Valuation Needed Before Fixing SARFAESI Auction Reserve Price: DRAT Kolkata

The Debts Recovery Appellate Tribunal (DRAT) at Kolkata has held that an e-auction cannot be invalidated solely because the reserve price is below the distress value, emphasising that proper valuation and due process are the governing requirements. A coram of Chairperson Justice Anil Kumar Srivastava observed, “In case, proper valuation has not been made and the reserve price is fixed taking into consideration the inaccurate valuation report, the intending buyer may not come forward treating...