Agricultural properties under mortgage are exempt from SARFAESI Act proceedings if actively used for agriculture, and auctions below fair market value indicate procedural violations.

ORDER :

G.K. ILANTHIRAIYAN, J.

These Civil Revision Petitions are directed as against the order passed by the Debts Recovery Appellate Tribunal, Chennai passed in RA(SA) Nos.95 & 94 of 2018, dated 18.05.2022, thereby, confirming the order passed by the Debts Recovery Tribunal, Madurai in S.A.No.408 & 407 of 2016, thereby dismissing the appeal challenging the sale certificates issued by the first respondent herein registered vide document No.859 of 2023 at Sethur Sub Registrar Office, Virudhunagar District and document Nos.1433, 1434 and 1435 of 2022 at Vasudevanallur Sub-Registrar Office, Tenkasi Registration District.

2. Both the petitioners applied for Over Draft facility for their business with the second respondent to the tune of Rs.2,00,00,000/- (Rupees Two Crores) each, for which, the petitioner in C.R.P(MD)No. 2098 of 2025 had mortgaged his agricultural properties situated at Zamian Kollan-kondan Village, Rajapalayam Taluk, Virudhunagar District to an extent of 62 cents of Punja land in R.S.No.156/7 and an extent of 1.04 acres of Punja land in R.S.No.156/8 and another agricultural land at Seithur Village, Rajapalayam Taluk, Virudhunagar District measuring 30 cents of punja land in R.S.No.433/72E and the petitioner in C.R.P(MD)No.2099 of 2025 had mortgaged his agricultural properties situated at Nelkattumseval Village, Vasudevanallur Panchayat Union, Vasudevanallur-Nelkattumseval Road, Sivagiri Taluk, Tirunelveli District measuring an extent of 1.75 acres of punja land in R.S.No.87/2 and an extent of 1.64 acres of punja land in R.S.No.92/1, an extent of 1.18 acres of punja land in R.S.No.95/3 and another agricultural land situated at Vasudevanallur Village, Sivagiri Taluk, Tirunelveli District measuring an extent of 1.63 acres of punja land in R.S.No.21/1A. The second respondent had verified the value of the properties after inspection by the Panel Valuer for ascertaining the market value and the nature of the properties. Accordingly, the panel valuer of the second respondent had visited the properties and submitted a valuation report to the second respondent, thereby, valued the properties in C.R.P(MD)No. 2098 of 2025 at Rs.4,04,40,000/- (Rupees Four Crores Four Lakhs and Forty Thousand only) and valued the properties in C.R.P(MD)No.2099 of 2025 at Rs.4,28,62,000/- (Rupees Four Crores Twenty-eight Lakhs and Sixty-two Thousand only). All the properties are classified as agricultural properties. On the basis of the legal opinion and also the valuation report, the second respondent had sanctioned an Over Draft facility of Rs.2 crores to each of the petitioner at 13.75% interest for a period of one year. The said facility has to be reviewed annually by the Bank. The petitioners have mortgaged their agricultural properties in favour of the second respondent by depositing the title deeds registered vide document Nos.3293 of 2013 and 2740 of 2013, dated 12.12.2023. After memorandum of deposit of title deeds were executed in favour of the second respondent, the second respondent had sanctioned Over Draft Credit Facility to the tune of Rs.2 Crores to each of the petitioner. At the time of sanction itself, the second respondent has also compelled the petitioners to take Insurance policy for the said loan amount to the tune of Rs.13,25,000/-. Accordingly, though a sum of Rs.2 Crores were credited to the Savings Bank account of the petitioners, the petitioners were only allowed to withdraw a sum of Rs.13,25,000/- each, that too, for the purpose of taking insurance policy to safeguard th