Mukesh Kumar Vs Authorized Officer-cum-Chief Manager (DART Allahabad)
The appeal before the Debts Recovery Appellate Tribunal, Allahabad was filed under Section 18 of the SARFAESI Act, 2002 against the judgment and order dated 29 April 2019, by which the Debts Recovery Tribunal had dismissed S.A. No. 24 of 2019 filed by the appellant.
The factual background shows that the appellant had availed financial assistance from the respondent bank. To secure the loan, an equitable mortgage was created over a residential plot by depositing the original title deed with the bank. The mortgage was created by Smt. Urmila Devi, wife of Chandra Kishore Prasad Singh. As the appellant failed to adhere to the terms of the loan agreement, the account was classified as a non-performing asset on 3 October 2017. Thereafter, a demand notice dated 17 October 2017 under Section 13(2) of the SARFAESI Act was issued for a sum of ₹7,93,632. When the borrowers failed to comply with the demand, a possession notice dated 2 February 2018 under Section 13(4) was issued, affixed on the property, and published in two newspapers on 3 February 2018.
Subsequently, a sale notice dated 5 November 2018 was issued and published, fixing the auction of the secured property on 29 November 2018. It was noted that an earlier auction sale notice dated 9 February 2018 had been issued for a proposed sale on 13 March 2018, but that sale did not materialise as the appellant deposited ₹3 lakh in order to save the property.
