V TamilSelvan vs UNION BANK OF INDIA on 23 October 2026

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

R.A(S.A):46/2026

V Tamilselvan V/S Union Bank of India

23/10/2026

This appeal is filed against the final order passed in SA 444/2023 by the learned Presiding Officer, DRT-III, Chennai on 27.03.2025. SA 444/2023 had been filed impugning the order dated 08.08.2023 passed under Section 14 of the SARFAESI Act by the learned Chief Judicial Magistrate, Mayiladuthurai in Crl.M.P.No. 36/2023. It is the submission of the learned counsel for the appellant that application under Section 14 of the SARFAESI Act was filed and obtained order in respect of the property, which is not the secured asset for the loan concerned in this case. As per the demand notice dated 06.10.2018, the respondent-Bank issued the said notice to M/s. Leads Engg. & Construction private Limited and its Director i.e. the appellant, Director R. Krishnakumar and also to the guarantor Mrs. Vanitha for securing the OCC loan of Rs.10,00,000/- and term loan of Rs.15,00,000/- with interest. The property shown as secured asset in the notice was not at all a secured asset by creation of mortgage for these particular loans. Appellant availed housing loan of Rs.25,00,000/- and to secure that loan, he executed a MODT on 07.03.2017 in respect of this property and the said housing loan was already discharged. Therefore, using the mortgage created for the housing loan, the respondent-Bank cannot claim that mortgage is also created in respect of the loan availed by M/s. Leads Engg. & Construction Private Limited and proceedings under the SARFAESI Act cannot be initiated, especially the order under Section 14 of the SARFAESI Act. These grounds though raised before the learned Presiding Officer, DRT-III, Chennai, that had not been considered and dismissed the securitization application. Thus, the present appeal. Learned counsel for the respondent seeks time for making submissions. Post the matter on 04.11.2026. Sd/-

Chairperson