Debts Recovery Tribunals and Appellate Tribunals
V Veeravel vs UNION BANK OF INDIA on 27 October 2026
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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
IA 1592/2026 (Urgent) in IA 1593/2026 (Waiver) in A.IR:3064/2026
V Veeravel V/S Union Bank of India
27/10/2026
Learned Counsel for the Petitioner/Appellant is present.
This application is filed to hear the waiver application IA 1593 of 2026 on an urgent basis.
In view of the reasons stated in the affidavit filed in support of the urgent application, IA 1592 of 2026 (Urgent) is allowed.
IA 1593/2026 (Waiver)
IA 1592 of 2026 (Urgent) is allowed.
Learned Counsel for Petitioner is present.
This appeal is filed against the order passed by the Learned Presiding Officer, DRT-III, Chennai in IA 2467 of 2026 in SA No. 734 of 2026 for staying the further proceedings.
SA No. 734 of 2026 has been filed to set aside the sale notice dated 21.9.2026, fixing the sale on 28.10.2026.
Learned Counsel for Petitioner submitted the Respondent Bank had issued sale notice dated 27.8.2026, fixing the sale on 13.10.2026. That sale notice was challenged in SA No. 657 of 2026. When that SA was pending, the Respondent Bank issued an impugned sale notice dated 21.9.2026, fixing the sale on 28.10.2026. The withdrawal of the earlier sale notice was not informed to the Petitioner. But an affidavit was filed by the Respondent Bank in SA No. 657 of 2026 stating the reason for withdrawal of the earlier sale notice dated 27.8.2026, fixing the sale on 13.10.2026. The Petitioner made a payment of Rs.10,49.053/- after receipt of possession notice. This amount was not taken into consideration when the debt is claimed as due in the sale notice. Petitioner made another payment of Rs.4.00 lakhs, after filing this Securitization Application to the Respondent Bank.
On these grounds, Learned Counsel for Petitioner seeks waiver of pre- deposit. No other ground is urged for waiver of pre-deposit.
Despite service of notice, there is no appearance for the Respondent Bank.
Learned Counsel for Petitioner submitted that since the sale is fixed tomorrow, i.e., 28.10.2026, and Petitioner is ready with a Demand Draft for Rs.2,50,000/- towards part pre-deposit, he prays for order in the waiver application and for staying the sale scheduled tomorrow.
Registry is directed to receive the Demand Draft for Rs.2,50,000/- towards part pre-deposit and invest the same in a Nationalized Bank for a reasonable period and renew it periodically, till further orders are passed.
The order of the Learned Presiding Officer, DRT-III, Chennai shows that the stay application was dismissed primarily on the ground that a loan of Rs.20.00 lakhs was obtained in the year 2006 and another loan to the tune of Rs.4.00 lakhs was obtained in the year 2019, despite issuance of possession notice, and challenging the possession notice in SA 583 of 2022, Petitioner has not taken any steps for liquidating the loan and, thus, dismissed the stay application. The sale is not held so far.
Pre-deposit is mandatory for entertaining the appeal under Section 18(1) of the SARFAESI Act, 2002. 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.
As per the impugned sale notice, the amount demanded as due is Rs.21,62,969.34p, as on 31.8.2026. Since there is no representation for the Respondent Bank, this Tribunal is not able to ascertain the current due, with subsequent interest, as on the date of filing this appeal. Therefore, this Tribunal directs the Petitioner to make a pre-deposit of 30% of Rs.21,62,969.34p in two equal instalments, failing which this appeal would stand rejected.
30% of Rs.21,62,969.34p comes to Rs.6,48,890.80p, rounded off to Rs.6,48,890/-. After deducing the part pre-deposit of Rs.2,50,000/- made by the Petitioner today, the balance pre-deposit to be made comes to Rs.3,98,890/-, (Rs.6,48,890 minus Rs. 2,50,000/-) out of which the first instalment of Rs.1,99,445/- is to be made on or before 11 am tomorrow, i.e., 28.10.2026. On such deposit, the sale scheduled for tomorrow is to be deferred till the next hearing. The second instalment of Rs.1,99,445/- is to be made on or before 18.11.2026.
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.
List the matter for compliance on 20.11.2026. Sd/-
Chairperson