Authority: Supreme Court of India
Order Date: August 24, 2026
Case Overview
- Appeal No.11960/2026 @ SLP (C) No.11918/2026 filed by J. M. Amanullah (appellant) against M/s Pranav Foundation Private Limited & Anr. (respondents).
- The appeal challenges the Madras High Court order dated 05 March 2026 in WP No.8810/2026, which had directed the petitioner to approach the Debts Recovery Tribunal (DRT) with a memo and to deposit Rs.25 crore within four weeks of receipt of the order.
- The High Court further ordered that the DRT‑III, Chennai could decide LA No.291 of 2026 immediately, prohibited the second respondent from creating any further encumbrance on the property for thirty days, and allowed the second respondent/auction purchaser to act after the thirty‑day period if the petitioner failed to comply.
- The respondent No.1 subsequently filed an application before the DRT, Chennai under Section 17 of the SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) in S.A. No.83 of 2026. This application was dismissed on 09 July 2026.
- Counsel for respondent No.1 indicated that an appeal under Section 18 of the SARFAESI Act has been filed before the Debts Recovery Appellate Tribunal (DRAT), Chennai, and is pending.
- The Supreme Court observed that since the respondent’s application failed before the DRT and the appeal before the DRAT is pending, the High Court’s judgment and order are to be set aside.
- The Court kept all points open on merits for the respondent, the petitioner, and the secured creditor to be urged before the DRAT.
Final Outcome
- The Supreme Court set aside the impugned Madras High Court judgment and order dated 05‑03‑2026.
- The appeal stands disposed of as per the signed order.
- Any pending applications, if any, are ordered disposed of.
- All matters are left open for determination before the Debts Recovery Appellate Tribunal.
Topics: Debt Recovery, SARFAESI Act