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Judgment
Ashok Menon, Chairperson
The matter is taken up for hearing by way of a praecipe filed by the appellant for seeking urgent relief.
The appellant is the creditor financial institution which is aggrieved by the order dated 22.10.2024 wherein the Debts Recovery Tribunal-III, Mumbai (DRT) granted protection to the applicant in Securitisation Application (S.A.) at Diary No. 1766 of 2024 preventing the appellant from taking possession of the property because the principal borrower had died and the applicant was only the legal representative of the principal borrower. Since the entire debt is insured, it is the liability of the insurance company to pay the amount and not the legal representative, and hence, the applicant was entitled to protection, held the DRT. The appellant is aggrieved and hence, in appeal.
The Ld. Counsel for the appellant submits that the insurance company is not made a party to the S.A. Without hearing the insurance company and understanding the extent of the insurance that is available to the applicant in the S.A., an order precluding the appellant from taking possession under the provisions of the SARFAESI Act could not have been passed. I find substance in the arguments advanced by the Ld. Counsel for the appellant.
The Ld. Counsel appearing for the respondents herein agreed to take steps to implead the insurance company.
Therefore, an opportunity is granted to the respondent who is the applicant in the S.A. to take appropriate steps for impleading the insurance company, so that the insurance company will also be heard concerning the extent of liability on the insurance company. The interim order granted is extended for one month within which all the steps shall be completed before the DRT.
The appeal is disposed of accordingly.