Tribunals must decide all issues including limitation and jurisdiction; failure vitiates proceedings, warranting remand.

JUDGMENT : 19t December, 2025

THE APPELLATE TRIBUNAL : Instant Appeal has arisen against a judgment and order dated 7 February, 2025 passed by Learned DRT Cuttack dismissing the S.A. No. 161 of 2023 (Banshidhar Behera and others versus Authorised Officer Punjab National Bank and others)

2. Feeling aggrieved by the impugned - order, Securitisation Applicant preferred the Appeal.

3. As per pleadings of the parties, Appellant is the guarantor who mortgaged the secured assets with the Respondent Bank. A total amount of Rs. 22,00,000/- was sanctioned by the Bank for construction of the house. There were some defaults and the account was classified as NPA during pandemic period. Notice under Section 13(2) of the SARFAESI Act, 2002 (hereinafter referred to as the ‘Act’) was issued demanding an amount of Rs.23,22,395/-. Representation under Section 13(3A) of the Act was made by the Appellant which was rejected. Subsequently, a sum of Rs.19,74,000/- was paid by the Appellant on 20th November, 2021. Notice under Section 13(4) of the Act was illegally issued on 05.10.2021 which was communicated to the Applicant on 09.10.2021 by post. Notice under Rule 8(6) of the Security Interest (Enforcement) Rules, 2002 was issued on 13.12.2021 and 04.01.2022. A Writ Petition (C) No. 406 of 2022 was filed by the Appellant. Pending Writ Petition, it is notified that the property has been successfully auctioned on 05.02.2022 for Rs.26.60 lacs. Ultimately Writ Petition was withdrawn with liberty to prefer an Application under Section 17 of the Act. An Application under Section 14 of the Act was also moved by the Bank before the Learned District Magistrate Cuttack wherein order was passed for taking physical possession. Accordingly, relief was sought in the Securitisation Application to quash the order of the Learned District Magistrate Cuttack dated 05.08.2023.

4. Opposition was filed before the Learned DRT challenging the contention of the Applicant wherein it is stated that the orders under Section 14 of the Act were passed in accordance with law. The auction purchaser filed a Writ Petition No. 391 of 2023 before the Hon’ble High Court of Orissa on 06.01.2023. Hon’ble High Court disposed of the Writ Petition with an observation that the possession of the property be handed over to the auction purchaser within a period of 15 days. Thereafter contempt petition No. 5059 of 2023 was filed before the Hon’ble High Court wherein directions were issued for complying the order by 09.08.2023. Subsequently, the contempt petition was dropped by the Hon’ble High Court on 09.08.2023. The petition under Section 17 of the Act was also time barred.

5. The Respondent Bank filed the reply before the Learned DRT stating that the Appellant is the borrower of the Bank wherein defaults were made in repayment. Accordingly, account was classified as NPA on 31.03.2021. Notice under Section 13(2) of the Act was issued on 17.06.2021. A representation under Section 13(3A) of the Act was made by the Appellant which was duly considered and replied on 13.07.2021. Thereafter, notice under Section 13(4) of the Act was issued on 05.10.2021. Again on 13.12.2021, Notice under Section 13(4) of the Act along with Rule 8(6) of the Rules was issued. Again on 04.01.2022 another Notice was issued demanding the dues. Sale Notice was published and intimated to the Appellant on 14.01.2022 which was duly received on 17.01.2022. E-auction was conducted on 05.02.2022. Writ petition was filed by the auction purchaser before the Hon’ble High Court wherein