CHENNAI: Deprecating the non-compliant attitude of a private healthcare provider whose property is slated for auction due to loan default, the Madras High Court has imposed costs of Rs 5 lakh.
A bench of justices R Suresh Kumar and N Senthilkumar passed the orders recently while allowing the lender, Union Bank of India, to proceed with the auction of the property belonging to Ravina Healthcare private limited for default of Rs 21.91 crore loan under the SARFAESI Act, 2002.
After the asset recovery branch of the bank attempted to auction the property, the debt recovery tribunal-III halted the bank’s auction on January 27, 2026, ordering the hospital to pay Rs 2.50 crore by the next day to maintain the stay. Subsequently, both sides filed writ petitions in the Madras HC.
The bench granted opportunities twice to the hospital but the defaulter did not comply with the order to pay the said amount. The bench said the borrower has shown ‘very scant respect’ to the court, and considerable judicial time has been wasted.
Stating that normally, in SARFAESI matters, the HC would not show any indulgence unless there is a suitable cause in favour of the writ petitioner/borrower, the bench noted that though such indulgence was shown, the hospital did not utilise the opportunity which revealed its ill intention to move the court to defeat the lawful move of the bank to recover the money. It is now open to the bank to proceed with the recovery of the money by invoking the provisions of the SARFAESI Act forthwith, the court said in its order.