MS KRISHNA MURGA WINE YARDS vs CANARA BANK on 9 September 2026

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

IA 379/2026 (Waiver) in A.IR:115/2026

M/S Krishna Murga Wine Yards V/S Canara Bank 09/09/2026

Learned Counsel for both sides are present.

This appeal is filed against the final order dated 31.12.2025 passed in SA No. 324 of 2021 by the Learned Presiding Officer, DRT-I, Karnataka at Bengaluru.

The aforesaid Securitization Application has been filed to set aside the possession notice dated 7.10.2021, issued under Section 13(4) of the SARFAESI Act, 2002. On contest, SA No. 324 of 2021 was dismissed. Thus, this appeal.

Learned Counsel for the Petitioner submitted that the possession notice has been issued without following the mandatory provisions under the SARFAESI Act, 2002. He informed that physical possession has been taken yesterday i.e., on 8.9.2026. The Petitioner is running a wine yard and it suffered a loss and, therefore, the loan amount could not be repaid. On these grounds, Learned Counsel for the Petitioner seeks waiver of pre-deposit. No other ground is raised for waiver of pre-deposit.

In reply, Learned Counsel for the Respondent Bank strongly opposes this application on the ground that Petitioner had challenged the order passed under Section 14 of the SARFAESI Act, 2002 in another appeal in AIR No. 122 of 2026. The pre-deposit ordered in that appeal was not complied and, therefore, AIR 122 of 2026 appeal was rejected. He further submitted that the Petitioner is deliberately not paying the loan amount.

Considered the rival submissions and perused the records.

From the possession notice, it is evident that there was a due amount of Rs.6,48,97,670.91p and interest due as on 7.10.2021, i.e., from the date of issuance of possession notice. In the waiver application in IA 402 of 2026 in AIR No.122 of 2026, it was informed by the Respondent Bank that there is a due of Rs.6,52,26,549.08p in respect of three loan accounts. It appears that Petitioner has not paid any amount after the issuance of possession notice. Pre-deposit is mandatory under Section 18(1) of the SARFAESI Act, 2002 for entertaining this appeal.

The debt due is inclusive of interest as per the definition of debt under Section 2(1)(ha) of the SARFAESI Act, 2002, read with Section 2(g) of the RDB Act 1993, which had been settled by 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.

In the said circumstances, this Tribunal directs the Petitioner to make a pre-deposit of 30% of Rs.6,52,26,549.08p, which comes to Rs.1,95,67,964.72p, rounded off to Rs.1,95,67,964/-, out of which the first instalment of Rs.97,83,982/- to be made on or before 23.9.2026, and the second instalment of Rs. 97,83,982/- to be made on or before 7.10.2026, failing which this appeal would stand rejected.

The said pre-deposit should be made 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 9.10.2026 for reporting compliance.

Sd/-

Chairperson