Partly allowed

M/s. Shree Dairy and Ors. v. Punjab National Bank Anr. Anr.

DRAT12 Oct 2022IA/408/2022

Case brief

AI extract

What is this about?

Appeal against dismissal of prayer to stall handing over possession of secured assets. Tribunal accepted Rs. 9 lakhs deposit as pre-deposit under S. 18(1) and granted interim stay on possession schedule. Hearing on waiver scheduled.

What did the court decide?

Deposit of Rs. 9 lakhs accepted; interim stay granted on handing over possession schedule; waiver application adjourned.

M/s. Shree Dairy and Ors. versus Punjab National Bank… — Execution and Attachment | DRAT (2022)

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BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Mr Justice Ashok Menon, Chairperson I.A. No. 408/2022 (WoD)

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In Appeal on Diary No. 754/2022

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Between

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M/s. Shree Dairy & Ors. … Appellant/s

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V/s.

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Punjab National Bank & Anr. … Respondent/s Mr. Gaurang Kinkhabwala, i/b Mr. N. L. Karamchandani, Advocate for Appellants.

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Mr Fraser M. Alexander, Advocate for Respondent No.1. Mr C. L. Ajankar, Advocate for Respondent No.2

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-: Order dated: 12/10/2022:-

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The Appeal is filed impugning the order dated 08.08.2022 in I.A. No 782/2022 in S.A. No. 189/2022 on the files of D.R.T., Nagpur wherein the learned Presiding Officer had dismissed the prayer seeking to stall the handing over the possession of the secured assets to the auction purchaser. As a consequence of that, the handing over of possession is scheduled for 13.10.2022.

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The learned counsel for the Appellant submits that there is confusion regarding the total amount due to be paid to the bank. There are three notices u/s 13 (2) issued by the bank. The first one of which was on 24.04.2014. There was a second notice on 31.03.2014 and the third notice was issued on 29.12.2014. The sale notice dated 31.01.2022 referred to only the notice dated 24.04.2014 which is for a sum of Rs.8,58,497/- only. But the sale notice also referred to the balance amount being Rs.35,29,042/- as of

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30.09.2021. The 13 (2) notice issued on 29.12.2014 referred to a demand made for Rs.72,07,342/- as on 31.03.2021. There is also a discrepancy in the date of classifying the debt as an NPA. The notice dated 24.04.2014 refers to the NPA date of 31.03.2013 whereas the notice dated 29.12.2014 refers to the NPA date as 31.01.2014. The learned counsel appearing for the Appellant also refers to the order of the District Magistrate, Amravati dated 03.03.2018 which referred to notice u/s 13 (2) dated 31.03.2014. No such notice has been received by the Appellant and therefore, that again is a mistake.

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The learned counsel appearing for the Respondent submitted that the dates would have gone wrong but the sale notice which is produced on page 261 also contains a newspaper notification on page 262 which refers to the property secured assets and mentions the notice u/s 13 (2) dated 24.04.2014. The learned counsel submits that the notice stated 24.04.2014 was actually withdrawn for some technical errors and purshis was filed on 08.11.2017 before the D.R.T. in S.A. No. 05/2017 which was pending at that time and consequence to that S.A. No. 05/2017 was disposed of on 13.11.2017 imposing the cost of Rs. 23,000 on the bank.

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The learned counsel appearing for the Appellant submits that there is a discrepancy regarding the date of classification of the debt as NPA notices u/s 13 (2) where the amounts are also different.

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The sale notice which was ultimately referred to the notice dated 24.04.2014 shows the amount due as only Rs.8,58,497/- and therefore, he offers to deposit a sum of Rs.9 lakhs today by way of Demand Drafts. It is requested that the said amount may be

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accepted as pre-deposit u/s 18 (1) and handing over the possession schedule for tomorrow may be stalled.

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In the reply submitted by the Respondent bank the statement of account pertaining to the amount due from the Appellant as of the date of filing the Appeal has not been clarified properly.

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Under the circumstances, I am of the opinion that the deposit of Rs. 9 Lakhs today shall be accepted and on the basis of that, there shall be an interim stay of the handing over of the possession schedule for tomorrow.

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The application for waiver of pre-deposit shall be further heard after the Respondent Bank submits the detailed account statements regarding the amount that is due as of the date of filing the Appeal.

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9 . The amount shall be deposited in the form of a Demand Draft with the Registrar of this Tribunal.

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As and when the said amounts are deposited, they shall be invested in term deposits in the name of Registrar, DRAT, Mumbai, with any nationalized bank, initially for 13 months, and thereafter to be renewed periodically.

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11 . Post on 11.11.2022 for hearing on the application for a waiver of Pre-Deposit.

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Sd/Chairperson

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psa-24

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M/s. Shree Dairy and Ors. v. Punjab National Bank Anr. Anr.

Case brief

What is this about?

What did the court decide?

M/s. Shree Dairy and Ors. v. Punjab National Bank Anr. Anr.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

All orders in this case

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