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ARTICLE · 31 JULY 2026

HSA | Dispute Resolution & Arbitration Monthly Update | July 2026

The dispute traces back to a loan availed by S. Murugesan, sole proprietor of M/s Shiv Shankar Agencies, from the secured creditor in 1984. To secure the facility, G. Ramanujam stood as guarantor and mortgaged his immovable property in favour of the secured creditor.

IndiaLitigation, Mediation & Arbitration

DISPUTE RESOLUTION AND ARBITRATION UPDATE

In The Supreme Court of India Mr. Vasumathi [Appellant] Vs. Authorised Officer & Ors. [Respondent]. 2026 SCC OnLine SC 1103

Background facts

  • The dispute traces back to a loan availed by S. Murugesan, sole proprietor of M/s Shiv Shankar Agencies, from the secured creditor in 1984. To secure the facility, G. Ramanujam stood as guarantor and mortgaged his immovable property in favour of the secured creditor. Following the borrower's default, the secured creditor instituted a mortgage suit before the City Civil Court, Chennai, and obtained a preliminary decree on 10.09.1997 for recovery of the outstanding dues. After the guarantor's demise, his legal heirs, including the appellant, inherited the mortgaged property. Although the parties explored the possibility of an amicable settlement, the negotiations ultimately did not materialise.

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