Disposed

National Bank Ltd. v. Indian Bank & Ors.

DRAT16 Jun 2023REGULAR APPEAL/101/2023

Case brief

AI extract

What is this about?

This order dismisses an application for a waiver of pre-deposit in an appeal filed under the RDB Act. The Bench held that the appellant, being neither a borrower nor a guarantor against whom a notice under Section 13(2) of the SARFAESI Act was issued, was not liable for the pre-deposit requirement.

What did the court decide?

Waiver of making pre-deposit to the appellant National Bank Limited in Regard to the pending appeal.

National Bank Ltd. versus Indian Bank & Ors. — Banking and Recovery | DRAT (2023)

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IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA

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Diary No. 289 of 2022

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THE HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA CHAIRPERSON

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16.06.2023	National Bank Limited … Appellant -Vs- Indian Bank & 10 Others … Respondents
	Ms. Aparajita Rao with Mr. Partha Bose and Ms. Ankana Basu, Learned Counsel for Appellants
	Mr. Debasish Chakrabarti with
	Ms. Sharmistha Pal, Learned
	Counsel for Respondent No. 1/Indian Bank
	Mr. Proshit Deb, Learned Counsel
	for Respondent No. 6/A.B. Bank Limited
	Mr. Mridul Kanti Sasmal with
	Mr. Safikul Mandal, Learned
	Counsel for Respondent No.
	9/Trust Bank Limited, Learned
	Counsel for Respondent No.
	6/A.B. Bank Limited

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THE APPELLATE TRIBUNAL :

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I.A. 197 of 2022

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Application for waiver of pre deposit under Section 21 of The Recovery of Debts And Bankruptcy Act, 1993 filed by the Appellant.

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Heard the Learned Counsel for the parties and perused the record.

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Instant appeal has been preferred against judgment and order passed by Learned DRT-I, Kolkata in O.A. 426 of 2014 dated 24^th July, 2020 whereby the Learned DRT

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allowed the O.A. The relevant portion of the order is as under:

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“The application of the Appellant Bank for the recovery of Rs.4311.39 lakhs is allowed ex parte with ex parte cost against the defendants No. 1 to 3 jointly and severally, Rs.24,69,38,785.71 is allowed ex parte against the defendant No. 4, Rs.2,77,47,936.90 is allowed ex parte against the defendant No. 5, Rs.1,12,19,195.35 is allowed ex parte against the defendant No. 6, Rs.24,69,38,785.71 is allowed ex parte against the defendant No. 4, Rs.13,12,48,591.63 is allowed ex parte against the defendant No. 7, Rs.1,39,60,653.23 is allowed ex parte against the defendant No. 8, Rs.2,43,16,844.79 is allowed ex parte against the defendant No. 9, Rs.1,95,61,468.08 is allowed ex parte against the defendant No. 10 and Rs.33,48,614.61 is allowed ex parte against the defendant No. 11 along with interest against the defendants.”

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Feeling aggrieved Defendant No. 5 , National Bank Limited, has preferred the appeal along with an application under Section 21 of The Recovery of Debts And Bankruptcy Act, 1993.

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Learned Counsel for Appellant submits that Section 21 of The Recovery of Debts And Bankruptcy Act, 1993 Act will not be attracted in this case as no debt is due against the Appellant. Learned Tribunal has wrongly fastened the liability upon the Appellant. Appellant had stopped further payment on receiving information from the Customs Authority about forgery in respect of the bills and also about none supply of goods. This aspect is not considered by the Learned Tribunal. Appellant has not availed any credit facility; who is neither a borrower nor guarantor.

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Learned Counsel for Respondent submits that a certificate is issued against the Appellant by the Learned DRT for an amount of Rs. 1,12,19,195.35p. Appellant has

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preferred the appeal under The Recovery of Debts And Bankruptcy Act, 1993 which can only be heard after making the pre deposit.

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Perusal of the judgment at page 14 will show that notice under Section 13 (2) of the SARFAESI Act was issued by the Respondent Bank against Defendants No. 1, 2 and 3 only. Appellant herein is neither a borrower nor guarantor. Accordingly, I do not find any ground for pre deposit to be made by the Appellant in the appeal. Accordingly, waiver application No. I.A. 197 of 2022 is allowed. Waiver is granted from making deposit to the Appellant.

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Let the appeal be registered by providing regular appeal number.

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Notices be served upon the Respondents and Affidavitof-Service be filed within four weeks. Respondents may file opposition within six weeks with copy to the Appellant. Rejoinder, if any, be filed within two weeks thereafter.

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List on 10^th August, 2023 for hearing of the appeal.

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Order dictated, signed, dated and pronounced in open Court.

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(Anil Kumar Srivastava,J) Chairperson

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Dated 16^th June, 2023 01/ac

National Bank Ltd. v. Indian Bank & Ors.

Case brief

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National Bank Ltd. v. Indian Bank & Ors.

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