DRAT Directs Expedited Disposal of Securitization Application, Maintain Status Quo Pending Deposit by Appellant in appeal against Canara Bank [Read Order]
The tribunal directed the lower Tribunal to dispose of the pending securitization application within three months, preferably, after the appellant deposits the additional Rs. 2.00 lakhs within ten days.
The Debts Recovery Appellate Tribunal ( DRAT ), Chennai, has directed the expeditious disposal of the securitization application filed against Canara Bank, while maintaining the existing status quo over the property in question. The appeal was filed in relation to a notice issued by the respondent-bank for taking physical possession of the property on 17.10.2025.
M/s Arya Enterprises, the appellant, represented by Shri Sudhanshu Mishra and Shri Babloo, submitted that they had already deposited Rs. 7.00 lakhs with this Tribunal in a previous appeal, which was disposed of on 11.09.2025, granting interim relief.
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They further stated their readiness to deposit an additional Rs. 2.00 lakhs within ten days to demonstrate their bona fide. The appellant contended that the pending securitization application should be decided swiftly, ideally within three months from the date of order, to prevent the bank from proceeding with physical possession.
The bench of Justice R. D. Khare Chairperson heard the submissions and noted the appellant’s deposit of more than 40% of the demanded amount of Rs. 22.46 lakhs. Accordingly, it directed the lower Tribunal to dispose of the pending securitization application within three months, preferably, after the appellant deposits the additional Rs. 2.00 lakhs within ten days.
Until then, all parties were instructed to maintain the current status quo over the property. If the appellant fails to deposit the amount within the stipulated period, the respondent-bank was free to proceed with legal action for physical possession.
The appeal was thus disposed of on these terms, with the Tribunal emphasizing the importance of timely adjudication and safeguarding the interests of all parties involved.
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