Debts Recovery Tribunals and Appellate Tribunals
G RAJASEKARAN & G KATHIKEYAN vs INDIAN OVERSEAS BANK on 10 September 2026
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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
T.P:25/2026
G Rajasekaran & anr V/S Indian Overseas Bank & 5 ors 10/09/2026
Learned Counsel for the Petitioners is present.
This matter was taken up on mentioning for an urgent hearing. No notice was taken to Respondents so far. However, Mr. N. Sasank Iyer was present for the Respondent Bank on being informed by the Learned Counsel for the Petitioners.
IA 1354 of 2026 is filed seeking stay of further proceedings.
This transfer petition is filed for transferring SA 741 of 2026 from DRT, Coimbatore to DRT, Madurai on the ground that the incumbent Learned Presiding Officer, Coimbatore had authored the OA No.247 of 2013 as Learned Counsel for the Respondent Bank, against the Applicants and, thus, he is of the view that propriety demands him to refrain from passing any orders in this case. He further observed that parties are to get the Securitization Application transferred to any other Tribunal by an order of DRAT, Chennai. In this background, this transfer petition is filed.
Learned Counsel for the Petitioners submitted that the sale is scheduled tomorrow i.e., 11.9.2026, and thus, he seeks stay of further proceedings.
Learned Counsel for the Respondent Bank submitted that he has no objection for transfer of SA 741 of 2026 from DRT, Coimbatore to DRT, Madurai. However, he strongly opposes grant of any stay. According to him, as per the sale notice dated 5.8.2026, the amount due and recoverable, as on 31.7.2026, is Rs.92,74,83,355/-. He further submitted that on 12.9.2011, a sum of Rs.12.00 crores was sanctioned as a loan. On default, the account was classified as NPA on 6.6.2013, followed by issuance of demand notice on 13.6.2013, and possession notice on 10.1.2014, under Section 13(2) and 13 (4) of the SARFAESI Act, 2002, respectively. Order under Section 14 of the SARFAESI Act, 2002 was obtained on 1.8.2025. That order is challenged in SA No. 931 of 2025 and is pending before DRT, Madurai. No payment has been made and, therefore, the loan amount has been escalated to Rs.92,74,83,355/-, as on 31.7.2026.
Be that as it may. Learned Counsel for the Petitioner expressed his willingness to settle the loan. Therefore, with a view to give an opportunity to the Petitioner, this Tribunal directs that if the Petitioner makes a payment of 30% of Rs.92,74,83,355/- on or before 11 am by tomorrow, i.e., 11.9.2026 to the Respondent Bank. If such payment is made, the sale, as scheduled tomorrow i.e., 11.9.2026, has to be deferred till next hearing before the DRT. If the Petitioner fails to make the payment by 11 am tomorrow, i.e., 11.9.2026, the Bank is entitled to proceed further with the sale in accordance with law.
IA No. 1354 of 2026 (Stay) is ordered accordingly.
Transfer Petition TP No. 25 of 2026 is allowed and transferred to DRT, Madurai for disposal in accordance with law.
DRT, Coimbatore is directed to transfer the case bundle to DRT, Madurai within two weeks from the date of receipt of a copy of this order. On receipt of the case records, Learned Presiding Officer, DRT, Madurai is directed to take the case on the file and after issuing notice to Respondents for their appearance, dispose of SA 741 of 2026 on merits and in accordance with law.
Parties are directed to bear their own costs.
Sd/-
Chairperson