S ARUMUGAM vs Muthoot Home Fin ( India ) limited on 11 November 2026

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

IA 1621/2026 (Waiver) in A.IR:3087/2026

S Arumugam V/S Muthoot Home Fin (India ) limited 11/11/2026

Learned Counsel for both sides are present.

This appeal is filed against the order passed by the Learned Presiding Officer, DRT-III, Chennai dismissing the stay application in IA No. 2480 of 2026 in SA No.738 of 2026.

SA No.738 of 2026 has been filed to set aside the order dated 13.10.2026 passed by the Learned Chief Judicial Magistrate, Puducherry in Crl.M.P.No.2656 of 2026, and for other reliefs.

It is a submission of the Learned Counsel for the Petitioner that the Petitioner was not served with either the demand notice issued under Section 13(2), or the possession notice issued under Section 13(4) of the SARFAESI Act, 2002. Though this ground had been raised, the Learned Presiding Officer, DRT-III, Chennai, has not considered these grounds in proper perspective, and dismissed the stay application; thus, this appeal. On these grounds, the Petitioner seeks waiver of pre-deposit. No other ground is urged for waiver of pre-deposit.

In reply, Learned Counsel for the Respondent Financial Institution submitted that the demand notice and possession notice had been served, and the order was passed on perusal of documents and affidavit filed in support of Section 14 application affirming the measures taken. Pre-deposit is mandatory for entertaining this appeal.

Considered the rival submissions and perused the records.

The issue as to whether the demand notice and possession notice have been served on the Petitioner, and the order was passed considering these grounds, will be taken up during the final hearing of the appeal.

Pre-deposit is mandatory for entertaining the 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.

It is gathered from the submission of the Learned Counsel appearing for the parties that the physical possession of the secured asset has not been taken so far, and the property is also not sold. As per the possession notice dated 10.3.2026, the amount claimed as due is Rs.72,94,081/-. As per the counter filed by the Respondent Financial Institution, the amount due as on 7.11.2026 is Rs.85,37,411/-.

In the said circumstances, this Tribunal, with a view to give an opportunity to the petitioner to pay the loan amount and save the property from being taken possession and sold, directs the Petitioner to make a pre-deposit of 25% of Rs.85,37,411/- in two equal instalments within a period of four weeks from today, failing which this appeal would stand rejected.

25% of Rs.85,37,411/- comes to Rs.21,34,352.75p, rounded off to Rs.21,34,352/-, out of which the first instalment of Rs.10,67,176/- is to be made on or before 25.11.2026, and the second instalment of Rs.10,67,176/- 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