MUTHULAKSHMI RAJENDRAN vs ICICI BANK LIMITED on 26 October 2026

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

IA 1369/2026(Waiver) in A.IR:2442/2026

Muthulakhsmi Rajendran V/S ICICI Bank ltd

26/10/2026

This application is filed for waiver of pre-deposit in AIR (SA) 2442 of 2026, under Section 18 of the SARFAESI Act, 2002.

AIR (SA) 2442 of 2026 has been filed against the final order dated 10.8.2026 passed by the Learned Presiding Officer, DRT-III, Chennai in SA No. 681 of 2024.

SA No. 681 of 2024 has been filed to set aside the measures initiated on the basis of the order obtained under Section 14 of the SARFAESI Act, 2002 on 2.5.2024 passed by the Learned Chief Judicial Magistrate, Chengalpat in Crl.M.P.No. 7510 of 2023.

It is the submission of the Learned Counsel for Petitioner/Appellant that Petitioner availed two loans i.e., housing loan for a sum of Rs.24,78,705/-, and a top-up loan for a sum of Rs.6.00 lakhs. The Respondent Bank issued two demand notices separately for both the loan amounts. Both the demand notices have not been served on the Petitioner. The publication of demand notice was effected only in respect of the second loan, and no publication was effected/produced in respect of the first loan. The Respondent Bank has also not produced proof of affixture of demand notice on the secured asset.

On the other hand, the Learned Chief Judicial Magistrate, Chengalpat found that the publication was effected for both the loans, and proceeded to pass orders in the application filed under Section 14 of the SARFAESI Act, 2002 without application of mind and without perusing the documents produced by the Respondent Bank.

He further submitted that as per the Learned Chief Judicial Magistrate, Chengalpat’s order, the amount demanded as due was Rs.22,18,365/-. Of this amount, Petitioner made a payment of 20% on the basis of a conditional order passed by the Learned Presiding Officer, DRT-III, Chennai. On these grounds, the Petitioner seeks waiver of pre-deposit. No other ground is urged in support of waiver of pre-deposit.

Learned Counsel for the Petitioner further submitted that the Respondent Bank is trying to take possession of the secured asset.

On 16.10.2026, Learned Counsel for Respondent Bank appeared and sought time for filing counter in the waiver application. There is no representation for the Respondent Bank today, and the counter is also not filed. Therefore, this Tribunal proceeds to dispose the waiver application.

In the light of the submissions made by the Learned Counsel for Petitioner, this Tribunal is of the view that the grounds raised challenging the merits of the order passed under Section 14 of the SARFAESI Act, 2002, will be taken up in the final hearing of disposal. Pre-deposit is mandatory under Section 18(1) of the SARFAESI Act, 2002 to entertain this appeal.

As per the order of the Learned Chief Judicial Magistrate, Chengalpat, the amount shown as due is Rs.22,18,365/-.

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.

However, in the absence of the Respondent Bank, this Tribunal is not able to ascertain the current due, with subsequent interest, as on the date of filing this appeal.

Thus, this Tribunal directs the Petitioner to make a pre-deposit of 25% of Rs.22,18,365/- in two equal instalments, within a period of four weeks from today, failing which this appeal would stand rejected. 25% of Rs.22,18,365/- comes to Rs.5,54,591.25p, rounded off to Rs.5,54,591.

Learned Counsel for the Petitioner informed that he is ready with a Demand Draft for Rs.5,50,000/-, which is close to 25% of Rs.22,18,365/- i.e., Rs.5,54,591/-, and thus, seeks protection from taking physical possession by the Respondent Bank.

In view of the deposit offered by the Learned Counsel for Petitioner which is close to 25% of the pre-deposit ordered, this Tribunal directs the Respondent Bank not to proceed with taking physical possession of the secured asset till next hearing.

Registry is directed to receive the Demand Draft for Rs.5,50,000/- towards part payment of pre-deposit and invest the same in a Nationalized Bank for a reasonable period and renew it periodically, till further orders are passed.

Learned Counsel for Petitioner is directed to make the balance pre-deposit of Rs.4,591/- on or before 10.11.2026.

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.

Call on 12.11.2026.

Sd/-

Chairperson