Debts Recovery Tribunals and Appellate Tribunals

priya vs CANARA BANK on 11 September 2026

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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

IA 833/2026 (Urgent) in IA 834/2026 (Waiver) in A.IR:1150/2026

Priya V/S Canara Bank & anr

11/09/2026

Aggrieved against the final order dated 07.04.2026 passed by the learned Presiding Officer, DRT-II, Chennai, in NDN SA 503/2026, this appeal is filed. It is the submission of the learned counsel for the petitioner that petitioner filed the aforesaid securitization application to set aside the sale certificate registered on 03.03.2025 as document No.1207/2026. Learned Presiding Officer, dismissed the securitization application on the ground of maintainability and therefore, this appeal is filed. Learned counsel for the petitioner further submitted that the sale was held without following the mandatory measures under the SARFAESI Act and issued the sale certificate. Without considering the grounds on merits, the learned Presiding Officer, dismissed the securitization application on maintainability. Thus, this appeal. The petitioner is not able to mobilise funds and seeks waiver of pre-deposit. Learned counsel for the petitioner also submitted that the amount claimed in the sale notice is only Rs.14,14,779.52p. and as per the order dated 18.02.2026 passed learned Chief Judicial Magistrate, Cuddalur, in Crl.M.P.No.11566/2025, under Section 14 of the SARFAESI Act, the amount due was at Rs.12,12,195/-. Learned counsel for the respondent opposes this application on the ground that the sale was properly conducted and sale certificate was issued and registered. There is no irregularity or illegality in the conduct of the sale. He sees time to get further instructions. The prayer in the securitization application shows that only registration of sale certificate is challenged. Neither the sale notice nor the sale held in pursuance of the sale notice was challenged by the petitioner. Be that as it may, as per the sale certificate dated 03.03.2026, the sale price was Rs.29,20,000/-. Pre-deposit is mandatory for entertaining this appeal. Now, the property is sold and third party interest is created.

As per the decision of the Hon’ble Supreme Court of India in re, M/s. Sidha Neelkanth Paper Industries Private Limited & Another Vs. Prudent ARC Limited & Others (Civil Appeal No. 8969 of 2022, decided on 05.01.2023) reported in 2023 SCC Online SC 12, when there is a challenge to the sale certificate, the amount mentioned in the sale certificate will have to be considered while determining the pre-deposit under Section 18 of the SARFAESI Act. In this case, sale certificate alone is challenged and therefore, this Tribunal, for entertaining this appeal, directs the petitioner to make pre-deposit of 25% of Rs.29,20,000/-, which comes to Rs.7,30,000/-. in two instalments within a period of four weeks from today. First instalment of Rs.3,65,000/-_ shall be deposited on or before 25.09.2026 and the second instalment of Rs.3,65,000/- shall be deposited on or before 09.10.2026 failing which, this appeal would stand rejected. The said pre-deposit should be paid in the form of Demand Draft in favour of Registrar, DRAT, Chennai, payable at Chennai. In case pre-deposit is made within the stipulated period, Registrar shall invest the same in a Nationalized Bank for a reasonable period and renew it periodically, till further orders are passed. Post the matter on 13.10.2026 for reporting compliance.

Sd/-

Chairperson

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