ANILKUMAR TR vs SOUTH INDIAN BANK on 11 November 2026

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

IA 908/2026 (urgent) in IA 909/2026 (Waiver) in A.IR:1297/2026

Anilkumar T R & anr V/S South Indian Bank Ltd & anr 11/11/2026

This application is filed to hear the waiver application IA 909 of 2026 on an urgent basis.

Learned Counsel for both sides are present.

The other side has no serious objection to this urgent application.

Therefore, urgent application IA 908 of 2026 is allowed.

IA 909/2026 (Waiver):

IA 908 of 2026 (Urgent) is allowed.

This appeal is filed against final order passed by the Learned Presiding Officer, DRT-II, Kerala at Ernakulam in SA No. 555 of 2025 on 26.3.2026.

SA No. 555 of 2025 has been filed to set aside the possession notice dated 8.7.2025 issued under Section 13(4) of the SARFAESI Act and to set aside the Annexure A7 commission notice dated 12.11.2025 issued by the Advocate Commissioner.

It is the submission of the Learned Counsel for the Petitioners that Petitioners availed loan facility from the Respondent Bank, as per the sanction proceedings. The purpose of credit facility was to meet the crop cultivation and post-harvest expenses of cardamom grown in 27.11 acres. An Advocate Commissioner was appointed at the instance of the Petitioner. The Advocate Commissioner visited the property and filed a report dated 16.2.2026. It is clearly stated in the Advocate Commissioner’s report that there are cardamom plants, coconut trees, coffee plants, arecanut, pepper, papaya, plantains, Jackfruit trees, and other plants in multiple numbers. Petitioners also produced photographs showing the existence of these trees and plants. The very foundation of Petitioner's case is that the land offered as security is an agricultural land. Therefore, no proceedings under the SARFAESI Act,2002 can be initiated under Section 31(I)of the SARFAESI Act,2002. On these grounds, Learned Counsel for the Petitioner seeks waiver of pre-deposit. No other ground is urged in support of waiver of pre- deposit.

In reply, Learned Counsel for the Respondent Bank submitted that Petitioners availed two loan facilities, one for construction of residential house in his own land measuring 48 ares situated in Survey No. 25/1-371 (Re. Sy. No. 382/2) at Pampadumpara village, Udumbanchola Taluk, together with buildings existing, or to be constructed therein. Thereafter, he availed loan for meeting crop cultivation and post-harvest expenses of cardamom grown in 27.11 acres by offering the standing crops as hypothecation as primary security and residential property constructed in Survey No. 382/2 as secondary security. At the time of availing the loan facility, Petitioner gave one undertaking that the property offered as security is non-agricultural in nature and usage and shall continue to be non- agricultural usage till the full tenure of the loan. Therefore, it is not open to the Petitioners to claim that the land offered as security is an agricultural land and therefore SARFAESI measures cannot be initiated. Pre-deposit is mandatory for entertaining this appeal.

Considered the rival submissions and perused the records.

Though the Advocate Commissioner's notice dated 16.2.2026 is challenged in the prayer, on a query as to whether the order passed by the Magistrate under Section 14 of the SARFAESI Act,2002 was challenged or not, Learned Counsel for the Petitioner fairly conceded that the order passed under Section 14 of the SARFAESI Act,2002 was not challenged. As per the possession notice dated 8.7.2025, the amount demanded as due was Rs. 1,17,09,829.11p as on 30.12.2024.

Pre-deposit is mandatory for entertaining this appeal under Section 18(1) of the SARFAESI Act. 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.

The grounds raised by the Learned Counsel appearing for the parties with regard to the claim that the land is an agricultural land and other issues would be decided in the main appeal.

Learned Counsel for the Respondent Bank submitted that the due as of now, that is at the time of filing the appeal, is Rs. 1,31,36,296.73 as on 7.9.2026. The property is not sold so far, but it is informed by the Learned Counsel for the Petitioners that physical possession of the secured asset has been taken on 30.10.2026.

In the said circumstances, this Tribunal directs the Petitioner to make a pre- deposit of 25% of Rs. 1,31,36,296.72 in two equal instalments within a period of four weeks from today, failing which this appeal would stand rejected.

25% of Rs.32,84,074.18p, rounded off to Rs.32,84,074/-, out of which the first instalment of Rs.16,42,037/- is to be made on or before 25.11.2026, and the second instalment of Rs.16,42,037/- is to be made on or before 9.12.2026.

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.

Post the matter on 11.12.2026 for reporting compliance.

Sd/-

Chairperson