B VIDYARANYA vs PUNJAB NATIONAL BANK on 27 October 2026

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

IA 1018/2026 (Waiver) in A.IR:843/2026

B Vidyaranya V/S Punjab National Bank 27/10/2026

This appeal is filed against the order passed in IA 265/2026 in SA 79/2026. SA 79/2026 has been filed to set aside and quash the auction sale notice dated 08.01.2026 fixing the sale on 26.02.2026. During the pendency of the SA 79/2026, petitioner filed IA 265/2026 for staying the further proceedings. Learned Presiding Officer, DRT-II, Chennai passed the conditional order staying the sale notice subject to the petitioner making payment of 20% of the amount due on or before 25.02.2026 and further sum of 25% of the amount due within 15 days thereafter. Aggrieved against this order, this appeal is filed. It is further submitted that the property was grossly under valued and the sale notice was not published as required under the Security Interest (Enforcement) Rules 2002. Petitioner is not able to mobilize funds for making pre-deposit. Thus, the learned counsel for the petitioner seeks waiver of pre-deposit. No other ground is urged in support of waiver of pre-deposit. Objecting to waiver of pre-deposit, learned counsel for the respondent-Bank submitted that it is the second sale notice. It is not correct to state that the property was grossly undervalued and publication of sale notice was not effected. Sale notice was issued on compliance of the mandatory requirements under the SARFAESI Act. After issuance of demand notice and even after issuance of sale notice, petitioner has not paid any amount towards loan accounts. Property is sold and third party interest is created. Pre-deposit is mandatory for entertaining this appeal. Considered the rival submissions and perused the records. Pre-deposit is mandatory for entertaining the appeal filed against the order aggrieved. SA 79/2026 has been filed challenging the sale notice dated 08.01.2026 fixing the sale on 26.02.2026. It is informed that the petitioner has not complied any of the condition imposed by the learned Presiding Officer, DRT-II, Chennai and filed the appeal. In view of the non-compliance, the sale was concluded. As per the sale notice dated 08.01.2026, the amount demanded in respect of three loan accounts was Rs.5,67,99,639.01p. Admittedly, petitioner has not paid any amount towards the loan accounts after receipt of the demand notice or the sale notice.

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. Considering all these aspects, especially, the fact that the sale was concluded in favour of the auction purchaser and third party interest is created, this Tribunal directs the petitioner to make pre-deposit of 30% of Rs. 5,67,99,639.01p in two equal instalments within a period of four weeks from today, which comes to Rs. 1,70,39,891.70p. of which, the first instalment of Rs.85,19,945.85p. rounded off to Rs.85,19,946/- on or before 10.11.2026 and the second instalment of Rs.85,19,945.85p. rounded off to Rs.85,19,946/- on or before 25.11.2026, failing which, this appeal would stand rejected. The said pre-deposit should be paid 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 27.11.2026 for reporting compliance.

Sd/-

Chairperson