M/s.BE Gorgeous vs INDIAN BANK on 5 November 2026

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

IA 1641/2026 (Urgent) in IA 1642/2026 (Waiver) in A.IR:3043/2026

M/s B E Gorgeous V/S Indian Bank & 6ors

05/11/2026

Considering the reasons stated in the affidavit filed in support of the petition, this urgent petition is allowed. IA 1642/2026 (Waiver): This appeal is filed against the final order passed by the DRT Madurai in SA No. 829 of 2025 on 07.09.2026. SA 829 of 2025 has been filed to set aside the order of the learned Chief Judicial Magistrate, Tiruchirapalli in Crl. MP No. 606/2025 on 20.03.2025. It is the submission of the learned counsel for the petitioner that there are two firms involved in loan transaction. One is the petitioner's firm and the other is Vishnu Durgai Amman Enterprises, and its proprietor is petitioner's father Mr. Bharathan. Both the firms availed loan from the first respondent bank. The loan was insured with the United India Insurance Company. The bank issued a demand notice dated 07.04.2022 in respect of one loan and another demand notice dated 10.06.2022 in respect of other loan. Petitioner's father Mr. Bharathan died. When the petitioner sought for the insurance details and payment of loan on the death of his father, the bank has not divulged any details. The petitioner has made payment of 65% of the loan obtained. After declaration of the account as NPA, the first respondent-bank refused to receive the payments made by the petitioner. On these grounds, learned counsel for the petitioner seeks waiver of pre-deposit. No other ground is urged for waiver of pre-deposit. Objecting to the submissions of the learned counsel for the petitioner, it is submitted by the learned counsel for the first respondent-Bank that the insurance policy referred by the petitioner got expired in the year 2019 itself. The period of insurance was from 19-3-2018 to 18-3-2019. There is no material produced to show that the policy was extended. The demand notice was issued in the year 2022. Therefore, the contention of the learned counsel for the petitioner that the first respondent-bank has not divulged details of insurance policy and has not paid the loan amount in terms of the insurance policy cannot be accepted. After deducting the sale price, the amount due is 1.8 crores. Pre-deposit is mandatory for entertaining the appeal.

Considered the rival submissions and perused the record. It is not in dispute that the petitioner has also availed loan from the first respondent bank. The account was classified as NPA by the first respondent- bank. It is informed by the learned counsel for the first respondent-Bank that possession notice issued by the first respondent-bank, despite received by the petitioner, had not been challenged. Sale notice has been issued and the sale was held on 30.11.2023. Physical possession of the secured asset was also taken. However, after taking physical possession of the secured asset, the petitioner had broke open the door and repossessed the property, and therefore police complaint was given in this regard on 24.10.2025. Except the grounds raised above, the petitioner has not raised any other ground with regard to challenging the order passed under Section 14 of the SARFAESI Act. The ground raised above will be decided in the main appeal. Pre-deposit is mandatory for entertaining the appeal. As per order passed under Section 14 of the SARFAESI Act, on 20.03.2025, the outstanding amount was claimed at Rs. 29,96,852.61p. as on 23-12-2024. Learned counsel for the first respondent-Bank is not able to give current outstanding on the date of filing of the appeal. Therefore, this Tribunal, for entertaining this appeal, direct the petitioner to make pre-deposit of 25% of Rs.29,96,852.60p. i.e. Rs.7,49,213.15p. in two equal instalments within a period of four weeks from today. First instalment of Rs.3,74,606.57p. rounded off to Rs.3,74,607/- shall be deposited on or before 19.11.2026 and the second instalment of Rs.3,74,606.57p. rounded off to Rs.3,74,607/- shall be deposited on or before 03.12.2026, 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 07.12.2026 for reporting compliance. Sd/-

Chairperson