Gowri Fabricators vs PUNJAB NATIONAL BANK on 12 November 2026

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

IA 593/2026 (Waiver) in A.IR:145/2026

Gowri Fabricators & Anr V/S The AO, Punjab National Bank 12/11/2026

Learned Counsel for both sides are present.

This appeal is filed against the final order passed in SA No.686 of 2023 by the Learned Presiding Officer, DRT-III, Chennai on 9.12.2025.

SA No.686 of 2023 has been filed to set aside the sale held on 15.9.2023, pursuant to the sale notice dated 29.8.2023.

Learned Counsel for Petitioners/Appellants submitted that Respondent Bank has not served the demand notice issued under Section 13(2), and the possession notice issued under Section 13(4) of the SARFAESI Act, 2002 to the Petitioners. The balance sale consideration was not paid within the time stipulated under the Security Interest (Enforcement) Rules, 2002. On these grounds, the Securitization Application has been filed. Learned Presiding Officer, DRT-III, Chennai, without considering the grounds on merits, dismissed the Securitization Application. Therefore, this appeal. Thus, he seeks waiver of pre-deposit. No other ground is urged in support of waiver of pre-deposit.

Learned Counsel for Respondent Bank opposes this waiver application on the ground that sale has been held on 15.9.2023, confirmed, and sale certificate issued and registered. It is further submitted that the Respondent Bank served the demand notice and possession notice to the Petitioners, and that the balance sale consideration was paid in time. Pre-deposit is mandatory for entertaining this appeal.

From the submissions of the Learned Counsel for the Parties, it can be gathered that the sale was over and third-party interest is created. The auction purchaser is not impleaded as a Respondent before DRT-III, Chennai, and also in this appeal. The auction purchaser is a proper and necessary party for the effective and binding disposal of this appeal and to avoid multiplicity of proceedings. Petitioners are directed to take steps for impleading the auction purchaser in this appeal.

Pre-deposit is mandatory for entertaining this appeal under Section 18(1) of the SARFAESI Act, 2002. 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.

As per the sale notice dated 29.8.2023, the amount demanded as due was Rs.72,31,048.41p, as on 31.7.2023 with further interest and other charges from 1.8.2023, less recoveries. Learned Counsel for the Respondent Bank is not able to give this Tribunal the outstanding due as on the date of filing this appeal, without considering the sale consideration. Therefore, the sum of Rs.72,31,048.41p is taken as the base amount for considering the pre- deposit.

In view of the completion of the sale, this Tribunal directs the Petitioners to make a pre-deposit of 30% of Rs.72,31,048.41p in two equal instalments within a period of four weeks from today, failing which this appeal would stand rejected.

30% of Rs.72,31,048.41p comes to Rs.21,69,314.52p, rounded off to Rs.21,69,314/- out of which the first instalment of Rs.10,84,657/- is to be made on or before 26.11.2026, and the second instalment of Rs.10,84,657/- is to be made on or before 10.12.2026.

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 14.12.2026 for reporting compliance.

Sd/-

Chairperson