DRAT Condones 46-Day Delay in SARFAESI Application Due to Medical Issues [Read Order]
The appellant was also granted the liberty to file for any interim relief, which the Tribunal below was directed to consider and decide as expeditiously as possible
The Debt Recovery Appellate Tribunal (DRAT) has allowed an appeal by Punjab National Bank, setting aside a DRT order that had dismissed a securitisation application under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002( SARFAESI ) as time-barred. The DRAT condoned a 46-day delay in applying, citing the appellant's medical issues as a sufficient justification.
The appeal was filed by Prabha Sharma, the appellant, under Section 18of the SARFAESI Act against the final order dated 16.07.2025 passed by the Tribunal below in S.A. No. 806/2023. The appellant had deposited a sum of Rs. 27.00 lakhs as a pre-deposit, which was more than 25% of the amount due, and argued that the delay of only 46 days from the date of the sale certificate was not inordinate.
The appellant contended that against the demanded amount, the appellant has deposited a sum of Rs. 27.00 lacs before this Tribunal towards pre-deposit for entertaining the appeal, which is more than 25% of the amount due. Counsel further submits that on account of his medical treatment, the appellantcould not file the securitization application within the limitation period before the Tribunal below as there is a delay of only 46 days from the date of sale certificate excluding the period as prescribed under the Act for filing the S.A., therefore, it is prayed that the order impugned may be set aside and the matter may be remanded back to the Tribunal below to decide the S.A. on merits by extending the interim order granted by this Tribunal till the disposal of the S.A.
Justice R. Khare, Chairperson of the DRAT, considered the appellant's health problems and the relatively short period of delay. Finding the justification credible, the DRAT set aside the impugned order. The case has been remanded back to the original Tribunal to be decided on its merits "most expeditiously," with a directive to dispose of the matter preferably within three months from the date of production of the certified copy of the DRAT's order. The appellant was also granted the liberty to file for any interim relief, which the Tribunal below was directed to consider and decide as expeditiously as possible.
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