Debts Recovery Tribunals and Appellate Tribunals
M/S. poovai Amman Agency and 4 others vs CITY UNION BANK LIMITED on 21 October 2026
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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 1548/2026 (Urgent) in IA 1549/2026 (Waiver) in A.IR:2938/2026
M/S. Poovai Amman Agency And 4 Others V/S City Union Bank Limited &Anr
21/10/2026
Considering the reasons stated in the affidavit filed in support of the application, this urgent application is allowed.
IA 1549/2026 (Waiver) :
This appeal is filed against the final order dated 28.09.2026 passed by the learned Presiding Officer, DRT-II, Chennai in SA 505/2024.
This securitization application has been filed to set aside the order of the learned Chief Judicial Magistrate, Kallakuruchi in Crl. M.P.No.111/2024 dated 18.09.2024. Petitioners filed IA 1549/2026 for waiver of pre-deposit.
It is the submission of the learned counsel for the petitioners that petitioners filed AIR 1767/2026 challenging the order of the learned Presiding Officer, DRT-II, Chennai in SA 531/2023. In IA 1205/2026 in the aforesaid appeal, this Tribunal directed the petitioners to make pre-deposit of 40% of the debt due on 15.09.2026. In terms of the said order, petitioners deposited the amount of Rs.1,20,80,000/-. Both the cases involved recovery of debt arose on classification of accounts followed by single demand notice issued under Section 13 (2) of the SARFAESI Act. Thus, he prays that the pre-deposit already made in AIR 1767/2026 may be treated as pre- deposit in this case also.
Learned counsel for R1 is not disputing the pre-deposit made in the connected appeal.
Learned counsel for R2 submitted that there are 5 loan accounts and all of them were classified as NPA and single demand notice was issued for all the loan accounts.
In the light of the submissions of the learned counsel for the parties and in view of the decision of the Hon’ble High Court of Karnataka in WP No. 1059/2025 (GM DRT) when multiple appeals arose out of the same debt due, pre-deposit made in one appeal, the benefit of such deposit would be given to the petitioners in respect of other appeal. This Tribunal directs that the pre-deposit already made in AIR 1767/2026 will be treated as pre-deposit in this appeal. Thus, the waiver application is allowed.
Learned counsel for the petitioners expresses apprehension that the first respondent-Bank may take possession of the ‘A’ schedule property, which is in possession of the petitioners and thus seeks Stay of further proceedings in terms of the order passed under Section 14 of the SARFAESI Act.
This Tribunal noted from the submissions made by the learned counsel for the petitioners that there is no mention about the existence of the super-structure in the demand notice and the possession notice issued by the first respondent-Bank and also in the order passed under Section 14 of the SARFAESI Act, however, there is a mention about the super-structure in ‘A’ schedule property in the sale notice. When the said super-structure has been constructed has to be clarified by the parties.
In the said circumstances, the respondents are directed not to proceed further for taking physical possession of the secured asset till next hearing.
Registry is directed to number the appeal, if it is otherwise in order and list the same on 02.12.2026 after completion of service if any pending and pleadings.
Sd/-
Chairperson