R MOHAN Vs. DEBT RECOVERY TRIBUNAL

JUDGEMENT

(1.) BOTH writ petitions arise from the order dated 13.5.2014, one passed in R.A.(S.A.) No.247 of 2010 and the second one in I.A.No.377 of 2012 in R.A.(S.A) No.247 of 2010 by the Debt Recovery Appellate Tribunal, the first respondent herein.

(2.) THE petitioner obtained loan to the tune of Rs.5.20 lakhs on 04.10.2004 payable in monthly instalments of Rs.4929/ - for 20 years together with interest at the rate of 8.25% p.a. The land with proposed house was mortgaged for the said loan. The petitioner defaulted in making payment of the monthly installments. Thereafter, a demand notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (For short "SARFAESI Act"), was issued on 5.7.2007. Thereagainst, the petitioner sent a reply on 21.7.2007, explaining the reasons for non payment of monthly installments and sought for certain documents. The petitioner did not file any objection under Section 13(3 -A) of the SARFAESI Act. A possession notice was issued on 30.10.2007. Being aggrieved, the petitioner preferred a Securitisation Appeal, being S.A.No.189 of 2007 before the Debts Recovery Tribunal -III, Chennai, questioning the possession notice dated 30.10.2007 under Section 13(4) of the SARFAESI Act, 2002 and also seeking a direction to waive the penal interest and excessive interest other than the accepted interest by both parties.

(3.) THE Debt Recovery Tribunal -III by order dated 11.09.2009 dismissed the application, noting the fact that the petitioner was given time more than required to regularise the account by paying the defaulted installments for upgradation of the account to performing asset. The petitioner failed to do so and as such, necessary steps were taken under the provisions of the SARFAESI Act. Thereagainst, the petitioner came up to this court in W.P.No.23782 of 2009. A division bench of this court by order dated 13.4.2010 disposed of the writ petition, reserving liberty to the petitioner to avail the efficacious alternative remedy of appeal before the Debt Recovery Appellate Tribunal, within a period of two weeks. It was observed that a deposit of Rs.2 lakhs made by the petitioner during the pendency of the writ petition shall abide by the result of the appeal.