When parties have reached a settlement in recovery proceedings, the tribunal is obligated to expedite the disposal of applications concerning the return of original title documents to ensure the effective implementation of the settlement agreement.

Headnote:The petitioner sought a writ of mandamus under Article 226 of the Constitution of India to direct the recovery tribunal to return original title documents following a settlement in the underlying recovery proceedings. The petitioner argued that the delay in the return of documents hindered the completion of the settlement agreement. The court observed that the dispute between the parties had already been resolved and that the pendency of applications regarding legal representatives of a deceased borrower should not indefinitely delay the release of title deeds as agreed upon. The core issue was whether the court should compel the tribunal to expedite the disposal of an application for the return of documents where the main matter is settled. The ratio decidendi established that once a settlement is reached between the parties, the tribunal is obligated to dispose of auxiliary applications for document return as expeditiously as possible to avoid hindering the execution of the settlement terms. The court directed the tribunal to decide the pending application for the return of documents within two months.

Table of Content
1. court intervention for tribunal procedure delay. (Para 1 , 2)
2. timely disposal of settled litigation applications. (Para 3)

This petition under Article 226 of the Constitution has been filed seeking a direction to the Debts Recovery Tribunal-III, Chennai, to dispose of the application for return of original title documents pending in T.A.No.1545 of 2025, which has been disposed of.

2. The petitioner has filed an application (e-filing No.7933/2025 dated 07.10.2025) to facilitate the return of original documents listed therein. During the pendency of this application, one of the borrowers died and the application for bringing the legal representatives on record is pending. The Debts Recovery Tribunal is not taking any action in spite of the fact that the issue has already been settled between the parties. Because of non-return of documents, the petitioner is unable to recover the amount since there is a condition in the settlement agreement that the petitioner would hand over the original documents to the borrowers and on receipt of the documents, the borrowers would pay the entire amount as per the settlement agreement.

3. Taking into consideration the fact that the issue is already settled between the parties, we are inclined to direct the Debts Recovery Tribunal-III, Chennai, to take up the application and decide the same in accordance with law as expeditiously as possible, preferably within two months from the date of receipt of a certified copy of the order.

Petition is disposed of. There shall be no order as to costs.

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2026 Supreme(Online)(Mad) 46742

IN THE HIGH COURT OF JUDICATURE AT MADRASSushrut Arvind Dharmadhikari, CJ, G.Arul Murugan, JJm Financial Asset Reconstruction Company Limited – AppellantVersusRegistrar, Debts Recovery Tribunal-III – RespondentWP No.19738 of 2026

When parties have reached a settlement in recovery proceedings, the tribunal is obligated to expedite the disposal of applications concerning the return of original title documents to ensure the effective implementation of the settlement agreement.

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Sushrut Arvind Dharmadhikari, CJ, G.Arul Murugan, J
Jm Financial Asset Reconstruction Company Limited – Appellant
Versus
Registrar, Debts Recovery Tribunal-III – Respondent
WP No.19738 of 2026