Appeal No. 333 of 2015. Case: State Bank of India Vs Dev Pal Nagar. Delhi DRAT DRAT (Delhi Debt Recovery Appellate Tribunals)
| Case Number | Appeal No. 333 of 2015 |
| Counsel | For Appellant: Bheem Sain Jain, Advocate and For Respondents: Rajeev Sagar, Advocate |
| Judges | P.K. Bhasin, J. (Chairperson) |
| Issue | Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 - Sections 13(4), 14, 17, 17(1) |
| Judgement Date | November 25, 2016 |
| Court | Delhi DRAT DRAT (Delhi Debt Recovery Appellate Tribunals) |
Order:
P.K. Bhasin, J. (Chairperson)
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The appellant is aggrieved by the order dated 18.9.2015 passed by the Debts Recovery Tribunal (Jaipur) whereby his Securitisation Application No. 55/2015 (S.A.) filed under Section 17(1) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('SARFAESI Act' in short) has been allowed and appellant Bank's action initiated for sale of its secured asset to recover its money from its borrower, who happens to be respondent's mother has been quashed. That order which besides giving the reasons for the acceptance of the S.A. also gives the facts also leading to the filing of the S.A. by the appellant is re-produced below:
1. The applicant has filed the above S.A. under Section 17 of SARFAESI Act, 2002 for quashing and setting aside the possession notice dated 18.6.2015 issued by non applicant Bank in respect of secured asset - Khasra No. 1201, Ward No. 29, Kunj Vihar Colony, Near Navdeep Hospital, Kotputli, Jaipur admeasuring 314.03 sq. yds. The applicant has also made a declaration that no security interest in favour of the non-applicant Bank up to 3/4 undivided share in the secured asset is created.
2. The applicant inter alia submits -
2.1 That the applicant is neither a mortgagor nor has given any guarantee in favour of the Bank. The secured asset was in the ownership of applicant's father Sh, Madan Pal Nagar. The office of Nagar Palika Mandal, Kotputli, Jaipur has executed a Patta dated 28.2.2002 in favour of their father Sh. Madem Pal Nagar, copy of which is marked as Annexure A. 1. Sh. Madan Pal Nagar died on 1.4.2007, copy of death certificate is marked as Annexure A. 2.
2.2 That after the death of Madan Pal Nagar, the immovable property was inherited jointly by four persons namely - Smt. Uma Nagar (Wife), Sh. Dev Pal Nagar (Son), Sh. Shiv Pal Nagar (Son), and Smt. Poonam Badana (Daughter). Thus, all the four persons have 1/4 undivided shares in the said immovable property.
2.3 That Smt. Uma Nagar obtained credit facility from non-applicant Bank in April 2013 and has created charge of her share in the said immovable property. The loan account of Smt. Uma Nagar, Proprietor of M/s. Shree Krishna Tractor was classified as NPA, therefore, the non-applicant Bank has initiated action under the SARFAESI Act, 2002 and posted the possession notice on the outer wall of the property and published the same in the newspaper, copy of the possession notice dated 18.6.2015 published in the newspaper on 25.6.2015 is marked as Annexure A. 4. Being aggrieved by the possession notice dated 18.6.2015, the applicant has filed the present S.A. and submitted that there exist no security interest of the non-applicant Bank in his 1/4 undivided share in the immovable property as he had not mortgaged his share in the property to the Bank.
2.4 That the District and Sessions Judge, Kotputli, Jaipur has issued a Succession Certificate No. 96 on 31.3.2010 in favour of him and other legal heirs of Late Sh. Madan Pal Nagar and in lieu of this Succession Certificate, the applicant is on absolute owner of 1/4 undivided share in the secured aspect.
2.5 That the non-applicant Bank con enforce its security interest in the secured asset only upto the extent of 1/4 undivided share, which is owned by Smt. Uma Nagar. The applicant has never executed any relinquishment deed, neither has gifted his share nor has sold his share till date and the other joint owners of the immovable property Sh. Shiv Pal Nagar and Smt. Poonom...
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