# M. R. Vasumathi vs. The Authorized Officer & Ors.

> SC judgment dated 2026-06-09. Citation: TCN-2026-SC-00092. M/s Shiv Shankar Agencies, with G. Ramanujam as guarantor, defaulted on a loan from the Indian…

- **Court:** SC
- **Order date:** 9 Jun 2026
- **Citation:** TCN-2026-SC-00092
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/m-r-vasumathi-vs-the-authorized-officer-ors-z54gd

## Summary

### Background

M/s Shiv Shankar Agencies, with G. Ramanujam as guarantor, defaulted on a loan from the Indian Bank. A preliminary decree was passed in 1997. After G. Ramanujam's death in 2001 and failed settlement attempts, the bank initiated SARFAESI proceedings in 2009, leading to an auction sale of the mortgaged property in 2010. The appellant (G. Ramanujam's daughter) and other heirs challenged these proceedings and the auction sale before the DRT, DRAT, and the High Court, primarily on grounds of limitation and procedural irregularities in the auction. All lower forums upheld the bank's actions.

## Facts

One S. Murugesan, sole proprietor of M/s Shiv Shankar Agencies, availed financial assistance from the secured creditor (Indian Bank) in 1984.

G. Ramanujam stood as guarantor for the loan and mortgaged his immovable property in favour of the secured creditor.

Due to default by the borrower, the secured creditor instituted a suit before the City Civil Court, Chennai, seeking recovery of outstanding dues.

On 10.09.1997, the City Civil Court passed a preliminary decree for Rs. 1,87,004.23 (total Rs. 1,92,400.23p including court fee) with 18% interest per annum.

G. Ramanujam expired on 26.09.2001, leaving behind his heirs, including the appellant, M. R. Vasumathi.

Several attempts for amicable settlement between the secured creditor and G. Ramanujam's heirs failed.

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## Issues and analysis

### Issue 1: Whether the proceedings under the SARFAESI Act initiated in the year 2009, nearly 12 (twelve) years …

**Ratio:** The Supreme Court found it superfluous to render a conclusive determination on the first

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**Reasoning:** The High Court had rejected the limitation argument, stating that the secured creditor

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**Interpretation:** The Court implicitly acknowledges that while delay in initiating SARFAESI

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**Application:** Not directly applied to invalidate the proceedings in this judgment, as the

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## Parties

- **Judges:** DIPANKAR DA…; AUGUSTINE GEORGE…
- **Appellants:** M. R. Vas…; Son of G.…
- **Respondents:** The Authorized…; Indian…; +2 more
- **Advocates:** Ratnakar…; Brijesh Kumar…; +1 more

## Timeline

- **1984 — Loan Availed &…**: S. Murugesan availed financial assistance from the secured creditor; G. Ramanujam stood…
- **1997-09-10 — Preliminary Decree…**: City Civil Court, Chennai, passed a preliminary decree in favour of the secured creditor…

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