T N ANANDAN vs STATE BANK OF INDIA on 30 October 2026

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

IA 1644/2026(Urgent) in IA 1645/2026 (Waiver) in A.IR:3105/2026

T N Anandhan V/S State Bank of India

30/10/2026

Considering the reasons stated in the affidavit filed in support of the application, this urgent application is allowed. IA 1645/2026 (Waiver) This appeal is filed against the order dated 26.10.2026 passed by the learned Presiding Officer, DRT-III, Chennai, in the Stay application-IA 2297/2026 in SA 745/2026.

This SA 745/2026 is filed to set aside the order passed under Section 14 of the SARFAESI Act by the learned Chief Judicial Magistrate, Thiruvarur in Crl. M.P. No. 647/2026 on 28.09.2026 for recovery of the amount of Rs.14,66,910/-. Learned Presiding Officer, DRT-III, Chennai passed an order directing the petitioner to make payment of Rs.6,00,000/- on or before 30.10.2026. It was made clear that if the petitioner fails to make payment, interim Stay stands automatically vacated and the Bank is permitted to proceed further. It is the submission of the learned counsel for the petitioner that the petitioner offered to pay a sum of Rs.3,00,000/- and prayed for two weeks time for making payment of the said amount. However, learned Presiding Officer recorded that the petitioner’s counsel voluntarily submitted to make some payment to show his bonafide for the Stay of proceedings and passed an order directing to make payment of Rs.6,00,000/- on or before 30.10.2026. This condition is onerous and therefore, the petitioner could not mobilize fund to make the payment. Possession is schedule today and the petitioner is ready with the demand draft of Rs. 2,00,000/-. The main ground on which, SA 745/2026 filed is that the loan was obtained for construction of house. On the basis of the loan amount, a building was constructed on the secured assed, which is the vacant plot. In the application filed under Section 14 of the SARFAESI Act, the existence of the building is suppressed. It is impermissible under Law. Thus, he seeks to waiver of pre-deposit. No other ground is raised in support of waiver of pre-deposit.

Learned counsel for the respondent submitted that he was not appearing before the Tribunal and he cannot say about the offer made by the learned counsel for the petitioner to pay a sum of Rs.3,00,000/- and recording of the learned Presiding Officer that the petitioner’s counsel offered to make some payment. This appeal is filed only to drag on the proceedings. Considered the rival submissions and perused the records. The issue as to whether the omission to mention the building constructed on the basis of the housing loan availed in the application filed would affect the order passed under Section 14 of the SARFAESI Act along with other grounds will be considered in the main appeal. Learned Presiding Officer recorded that petitioner’s counsel voluntarily submitted to make some payment, but, it is case of the learned counsel for the petitioner now that petitioner’s counsel offered to make payment of Rs.3,00,000/- and even to pay that amount, sought time. This issue will also be considered in the main 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. On a query, it is informed by the learned counsel for the petitioner that the property is not sold and physical possession of the secured asset is not taken till now i.e. at 11.05 a.m. today.

Considering the fact that the property is not sold so far and physical possession is also not taken, this Tribunal with a view to give an opportunity to the petitioner to pay the loan amount and save the property, directs the petitioner to make pre-deposit of 25% of Rs. 14,66,910/- in two instalments within a period of four weeks from today, which comes to Rs.3,66,727.50 rounded off to Rs.3,66,728/-. The petitioner has deposited a sum of Rs.2,00,000/- by way of demand draft today. The balance amount of Rs.1,66,727.50p. rounded off to Rs.1,66,728/-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.

Since the petitioner has deposited a sum of Rs.2,00,000/- today by way of demand draft, the respondent is directed not to take physical possession of the secured asset till next hearing. Post the matter on 01.12.2026 for reporting compliance. Sd/-

Chairperson