Allowed

Erstwhile Udhana Citizen Co-Op Bank Ltd. v. Bank of Baroda & Ors.

DRAT30 Mar 2022REGULAR APPEAL/113/2016

Case brief

AI extract

What is this about?

The Dr. Recovery Appellate Tribunal allowed the appeal for condonation of delay of 1535 days, attributing the delay to the change in bank management and administrator's rights. The appeal is permitted subject to payment of Rs. 10,000 costs.

What did the court decide?

Application for condonation of delay is allowed on payment of costs of Rs. 10,000 payable to DRT Bar Association within two weeks.

Erstwhile Udhana Citizen Co-Op Bank Ltd. versus Bank of… — Banking and Recovery | DRAT (2022)

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BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT : MUMBAI Present : Mr. Justice Ashok Menon, Chairperson

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M.A. No. 309/2016 (CoD)

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Appeal No. 113/2016

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Between

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Erstwhile Udhna Citizen Co-operative Bank Ltd. … Appellant/s now The Kalupur Commercial Co-operative Bank Ltd. V/s.

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Bank of Baroda & Ors.

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…Respondent/s

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Mr. Jatin K. Sheth, Advocate for Appellant.

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Mr. Prsahant Shinde, i/b M/s. Anant B. Shinde & Co., Advocate for Respondent No.1.

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-: Order dated : 30/03/2022 :-

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This application is filed for condonation of delay 1535 in filing present Appeal.

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Learned counsel for Appellant submits that there is only 74 days delay because the Appellant was not aware of the decree which passed in the proceedings before the D.R.T.-II, Ahmedabad.

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On going through the application, Affidavit and Additional Affidavit and also reply filed by Respondent Bank it is seen that Appellant had initially lots of problems, the R.B.I. had appointed Administrator in 2010 and the Administrators kept changing. The Advocate who was entrusted with matter before the D.R.T. was not diligently prosecuting the matter and ultimately decree was passed and the present Appellant was not knowing about the disposal of the said matter. Ultimately, Udhna Citizen Co-operative Bank Ltd. was

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taken over by another Co-operative Bank i.e. The Kalupur Commercial Co-operative Bank Ltd., a leading multi-state cooperative scheduled bank of Gujarat and that is when they came to terms with proper administration and management of the Bank which has large number of depositors. It is seen that present management came to know about this matter when only Notice (Form No. 53) for Settling Terms of Sale Proclamation, dated 09.10.2015 in R.P. No. 109/2011 arising out of O.A. No. 308/2011 for recovery which was issued by the Recovery Officer, Debts Recovery Tribunal-II, Ahmedabad. The same was received by present management on 27.11.2015, therefore, there was a delay of 74 days.

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Considering the entire facts and circumstances of the case, there appears to be no deliberate delay in this matter and only because of administrator’s rights and on the present Bank taking over of the erstwhile Co-operative Bank by the Administrator and consequently its merger with another Co-operative Bank that is why the present delay was caused. However, since the delay is of 1535 days and not just 74 days as stated it cannot be condoned without terms, therefore, application for condonation is allowed on payment of costs of Rs.10,000/- (Rupees Ten Thousand only) payable to DRT Bar Association, Mumbai, within two weeks.

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Post on 24.06.2022 for reporting compliance of above order.

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dpj/mks-2

Erstwhile Udhana Citizen Co-Op Bank Ltd. v. Bank of Baroda & Ors.

Case brief

What is this about?

What did the court decide?

Erstwhile Udhana Citizen Co-Op Bank Ltd. v. Bank of Baroda & Ors.

Case brief

What is this about?

What did the court decide?

What the court decided

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