IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT CHENNAI Dated the 19th of January, 2026 PRESENT: Hon’ble Mr. Justice G. Chandrasekharan CHAIRPERSON RA 73/2024 (Appeal No.1/2024 in MA 135/2022 in TRC No.2/2022 on the file of DRT-I, Chennai)

Between

1. S. Vanaja Rani, W/o. Late A.S.R. Surya Prakash, 14/1 M.C. Road, Old Washermanpet, Chennai – 600 021.

2. R.S. Praveen Raj, S/o. Late A.S.R. Surya Prakash, 14/1 M.C. Road, Old Washermanpet, Chennai – 600 021.

3. R.S. Pradeep Raj, S/o. Late A.S.R. Surya Prakash, 14/1 M.C. Road, Old Washermanpet, Chennai – 600 021.

… Appellants And

1. M/s. State Bank of India, Rep. by its Asst. General Manager & Relationship Manager-IV, Overseas Branch (Mid-Corporate Group), No. 86, Rajaji Salai, Chennai – 600 001.

2. M/s. Thangam Steels Ltd.

Rep. by its Managing Director, C-36, 2nd Avenue, 4th floor, Anna Nagar, Chennai – 600 040.

3. Mr. P.S. Krishnamurthy, Managing Director of M/s. Thangam Steels Ltd., Plot No.4582, New No.14, Y Block, Anna Nagar East, Chennai – 600 040

4. Mrs. K. Vadivambal, W/o. Mr. P.S. Krishnamurthy, Director of M/s. Thangam Steels Ltd., Plot No.4582, New No.14, Y Block, Anna Nagar East, Chennai – 600 040

5. Mr. P.K. Srinivasan, S/o. Mr. P.S. Krishnamurthy, Director of M/s. Thangam Steels Ltd., Plot No.4582, New No.14, Y Block, Anna Nagar East, Chennai – 600 040

6. M/s. P.S. Krishnamurthy Steels Pvt. Ltd., Rep. by its Managing Director, C-36, 2nd Avenue, 3rd floor, Anna Nagar, Chennai – 600 040 Rep. by Official Liquidator, High Court of Madras.

…Respondents Counsel for Appellant : Mr. N. Nandakumar Counsel for R1 : Mr. M. L. Ganesh

ORDER

1. Aggrieved by the order passed by Learned Presiding Officer, DRT-I, Chennai on 18.06.2024 in Appeal No.1/2024 in MA 135/2022 in TRC No.2/2022, this Appeal is filed by Appellants.

2. Appellants, the Legal Representatives (LRs) of deceased A.S.R. Surya Prakash, filed MA 135/2022 before Recovery Officer, DRT-II, Chennai seeking a prayer not to attach the property for recovery of loan amount from Certificate Debtors till title is decided and with a prayer to raise the attachment ordered.

2.1 It is the case of the Appellants that some persons from DRT, came to the property in dispute on 06.04.2022 and pasted the warrant of attachment of immovable property. On going through the records, it was found that Certificate Debtors availed loan facilities from Certificate Holder Bank and failed to pay Rs.109,94,28,325.82p in terms of DRC No.537/2016.

2.2 The property concerned in the warrant belongs to A.S.R. Surya Prakash vide document Nos. 399/1981 and 1297/1995. On his death on 02.12.2019, Appellants are in possession and enjoyment of the property. During his life time, A.S.R. Surya Prakash availed loan of Rs.5.50 Lakhs from M/s. Park Town Benefit Fund by mortgaging the property vide document No.1508/1995. M/s. Park Town Benefit Fund, vide letter dated 19.10.2001 informed that it had accepted the OTS offer of Rs.7.25 Lakhs submitted by Late A.S.R. Surya Prakash and acknowledged the payment receipt of Rs.50,000/- paid by him and also granted time till 20.11.2011 for paying the balance amount. Subsequently, Late A.S.R. Surya Prakash received a letter from M/s. Vamana Auctioneers informing that property would be sold through public auction on 27.03.2002. Later, it was informed that 3rd Respondent, P.S. Krishnamurthy purchased the property in an auction conducted on 27.03.2002.

2.3 There had been no auction held on 27.03.2002. Respondent No.3 is the relative of one of the Directors of M/s Park Town Benefit Fund and colluding with Officials and Directors of M/s. Park Town Benefit Fund, fraudulently registered the sale deed in his name as if he participated in auction on 27.03.2002.

2.4 Aggrieved by the registration, A.S.R. Surya Prakash filed Suit in CS No.21/2004 before Hon’ble High Court of Madras against Respondent No.3 and two others. Interim order was granted in favour of A.S.R. Surya Prakash. The Suit was later transferred to City Civil Court and numbered as OS No. 12047/201