AI Structured Summary
Not yet generated for this judgment
Judgment
Learned Counsel for the Petitioners and R1 Respondent Financial Institution are present.
Respondents 2 to 4 are called absent and set ex parte vide order dated 3.8.2026.
This application is filed for condoning the delay of 138 days in filing this appeal.
It is the submission of the Learned Counsel for the Petitioners that Petitioners filed SA 513 of 2023 to set aside the possession notice dated 18.10.2023, issued under Section 13(4) of the SARFAESI Act, 2002. When the Securitization Application is pending, it is submitted that Petitioners filed IA Diary No. 814 of 2025 under Section 13(8) of the SARFAESI Act, 2002, read with Section 17(7) of the SARFAESI Act, 2002, read with Section 19(25) of the RDB Act, 1993, seeking to discharge the Petitioners from the entire liability with the 1st Respondent, and to redeem the property under mortgage on payment of legally derived amount, and the 1st Respondent to deliver all the original documents pertaining to the schedule property, and re-transfer the property. This application was dismissed by the Learned Presiding Officer, DRT-II, Chennai on 17.4.2025 on the ground that the prayer, as sought in the Securitization Application is not in consonance with the main relief and, therefore, it cannot be granted. It was further observed that if the Petitioners pays the entire dues to the Bank, automatically the loan gets discharged. However, interim stay granted was extended subject to payment of Rs.20.00 lakhs within 15 days from 17.4.2025. Aggrieved against this order, this appeal is filed with a delay of 138 days.
Learned Counsel for the Petitioners further submitted that after the dismissal of IA Diary No. 814 of 2025 on 17.4.2025, Petitioners filed review application in SR No. 1245 of 2025 on 17.5.2025. The review application was pending for maintainability for several hearings and, therefore, this appeal was filed on 2.10.2025. After filing this appeal, the review application was withdrawn. This is the reason for the delay in filing this appeal.
Learned Counsel for the Respondent Financial Institution opposes this application on the ground that the application filed before DRT-II, Chennai is only a ruse to delay the measures taken by the Respondent Financial Institution.
Considered the rival submissions and perused the records.
Admittedly, SA No. 513 of 2023 has been filed for setting aside the possession notice dated 18.10.2023 issued under Section 13(4) of the SARFAESI Act, 2002. IA Diary No. 814 of 2025 has been filed to discharge the Petitioners from the entire liability with the 1st Respondent, and further redeem the property under mortgage on payment of the legally derived amount, and the 1st Respondent to deliver all the original documents pertaining to the schedule property, and re-transfer the property to the Petitioners free from any and all encumbrances. The grounds raised in the Interlocutory Application had to be tested and decided only in the main Securitization Application, and not by way of an Interlocutory Application. As per the demand notice dated 22.5.2023, the amount due was claimed at Rs.2,58,54,366/- as on 22.5.2023. Had the Petitioners paid the amount, certainly the Bank would have been happy to discharge the Petitioners from the loan liability, and release the documents. Therefore, the claim made in the Interlocutory Application can be considered only in the main Securitization Application. Even assuming this delay is condoned, and the appeal is entertained, there is no way this Tribunal reverse the order passed by the Learned Presiding Officer, DRT-II, Chennai. Mere filing of review application is not a ground for condoning the delay of 138 days in filing this appeal.
Therefore, this Tribunal finds that the reasons stated for condoning the delay is not sufficient and acceptable for condonation. Thus, the delay condonation application in IA No.1500 of 2025 is dismissed. Consequently, appeal in AIR No.2027 of 2025 is rejected.
Learned Presiding Officer, DRT-II, Chennai is directed to dispose of the main Securitization Application on merits and in accordance with law, taking into consideration the grounds raised in IA Diary No.814 of 2025, if those grounds are raised in the SARFAESI application.
Parties are directed to bear their own costs.
Pending IAs, if any, stand closed.