Vadivudayan vs ICICI BANK LIMITED on 30 October 2026

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

IA 1537/2026 (Urgent) in IA 1538/2026 (Waiver) in A.IR:2850/2026

V C Vadivudayan V/S ICICI bank Ltd

30/10/2026

Considering the reasons stated in the affidavit filed in support of the application, this urgent application is allowed. IA 1538/2026 (Waiver) This appeal is filed against the order dated 15.09.2026 passed by the learned Presiding Officer, DRT-III, Chennai, in the Stay application-IA 2156/2026 in SA 627/2026.

This application in IA 2156/2026 is filed for staying further proceedings in SA 627/2026. SA 627/2026 has been filed to set aside the publication of sale notice dated 08.08.2026 fixing the sale on 15.09.2026.

It is the submission of the learned counsel for the petitioner that the petitioner was residing in the secured asset. He was dispossessed from the secured asset by the respondent-Bank on 17.07.2026. Sale notice was not taken to the petitioner to the address where he is presently residing. It was taken to the address of the secured asset where he was not residing in view of his dispossession by the Bank. Therefore, the petitioner was not aware of the sale notice and the sale proceedings. Some brokers informed about the sale measures and therefore, he had filed the securitization application belatedly on 15.09.2026. On the date of sale, the petitioner was asked to make the payment of the amount, but, he could not make the payment immediately. Therefore, the Stay application was dismissed. Against this order, the present appeal is filed. On these grounds, learned counsel for the petitioner seeks waiver of pre-deposit. No other ground is urged for waiver of pre-deposit. Learned counsel for the respondent-Bank submitted that paper publication was effected and affixure of sale notice was also done giving clear 30 days time for the sale of the secured asset. The change of address of the petitioner was not communicated to the Bank and therefore, notice could not be taken to the changed address. Sale is over and third party is created. Considered the rival submissions and perused the records.

It is seen from the submissions of the learned counsel appearing for the parties, especially, learned counsel for the respondent that sale notice was taken to the address of the secured asset wherefrom the petitioner was dispossessed on 17.07.2026. Therefore, it is crystal clear that there was no physical service of sale notice to the petitioner. This aspect along with the other grounds raised in the appeal will be considered in the appeal. Pre-deposit is mandatory for entertaining this appeal. 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. Learned counsel for the respondent is not able to furnish the correct outstanding on the date of filing of this appeal. Therefore, the amount due as per sale notice dated 08.08.2026 at Rs.31,59,456/- is taken for considering the pre-deposit. Considering the fact that the sale is over and the third party interest is created, this Tribunal, for entertaining this appeal, directs the petitioner to make pre-deposit of 30% of Rs. 31,59,456/- in two equal instalments within a period of four weeks from today, which comes to Rs.9,47,836.80p. First instalment of Rs.4,73,918.40p. rounded off to Rs.4,73,918/- shall be deposited on or before13.11.2026 and the second instalment of Rs.4,73,918.40p. rounded off to Rs.4,73,918/-shall be deposited on or before 27.11.2026, 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 01.12.2026 for reporting compliance.

Sd/-

Chairperson