Punam Kumari Singh & Ors. v. The South India Bank Ltd. & Ors.

…Appellant

…Respondent

Case No: Appeal on Diary No. 1493/2023

Date of Judgement: 04/09/2023

Judges:

Mr Justice Ashok Menon, Chairperson

For Appellant: Ms Payal S Kaware, Advocate.

For Respondent: Mr Benny Joseph, i/b M/s BJ Law Offices LLP, Advocate.

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Facts:

Arguments by the Parties:

The Tribunal observed that the Appellants had negotiated with the borrowers for purchasing the subject property, knowing fully well that it was mortgaged in favor of the Respondent Bank for a debt availed by the borrowers. The Tribunal noted that there was no sale deed executed in favor of the Appellants, and the agreement to sell dated 14.02.2022 was cancelled due to an error. The Tribunal found that the Appellants were admittedly not yet the owners in possession of the subject property, and even if they were given possession by the borrowers and expended money for improvement, their remedy against the borrowers would lie before a civil court of competent jurisdiction and not before the D.R.T. The Tribunal prima facie found no defect in the impugned order of the D.R.T. which was challenged in this appeal.

    • The Appellate Tribunal is empowered to entertain the appeal filed beyond the period of limitation on being satisfied that there is sufficient cause for not filing the appeal within the statutory period.
    • Even though Section 5 of the Limitation Act may be impliedly inapplicable, the principle may be applied.

    • Cases Cited:

    Sections and Laws Referred:

    Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)

      • Section 13(4) (Measures after issuing Demand Notice)
      • Section 17(1) (Right to lodge a caveat)
      • Section 18 (Appeals to Appellate Tribunal)

    • Section 20(3) (Appeal to Appellate Tribunal)

    • Indian Contract Act

      • Section 23 (What considerations and objects are lawful, and what not)

    Indian Penal Code

      • Section 448 (Punishment for house-trespass)
      • Section 34 (Acts done by several persons in furtherance of common intention)

    Limitation Act

      • Section 5 (Extension of prescribed period in certain cases)