Allowed

Tata Capital Financial Services Ltd. and Anr. v. Cygnus Pharmaceuticals Pvt. Ltd. and Ors.

DRAT12 Jul 2023REGULAR APPEAL/123/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an appeal against an order that had directed the Debts Recovery Tribunal to decide a pending interim application regarding SARFAESI protection case on a stipulated timeline.

What did the court decide?

Appeal allowed; matter remanded to DRT-3 Kolkata to decide the interim application within one month; date for hearing fixed as 17 July, 2023.

Tata Capital Financial Services Ltd. and Anr. versus Cygnus… — Banking and Recovery | DRAT (2023)

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IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA

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Appeal No. 123 of 2022

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(Arising out of I.A. No. 2494 of 2022 in SA No. 723 of 2022 in DRT-3 Kolkata)

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THE HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA CHAIRPERSON

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12.07.2023 Tata Capital Housing Finance Ltd. ... Appellants -VsCygnus Pharmaceuticals Pvt. Ltd. & ors. ... Respondent Mr. Sayak Ranjan Ganguly, Learned Counsel, Mr. S. Nag, Learned Counsel for the Appellant Mr. Nimish Mishra, Learned Counsel Mr. Gaurav Singh, Learned Counsel for the Respondent

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THE APPELLATE TRIBUNAL :

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Heard the Learned Counsel for the parties and perused the record. Impugned order was passed by Ld. DRT-3 Kolkata in S.A. No. 723 of 2022 in I.A. No. 2494 of 2022 dated 27.09.2022 wherein objections were invited and the matter was listed for hearing on 20^th December, 2022. In the meantime, parties were directed to maintain the status quo.

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Feeling aggrieved by this operation of the order, Appellant preferred the Appeal.

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I have heard the Learned Counsel for the parties and perused the record. Learned Counsel for the Appellant submits that before passing the impugned order Ld. DRT has not considered the three necessary ingredients of passing an interim order i.e. prima facie case, balance of convenience and irreparable loss. Hence, the order itself is illegal.

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As far as impugned order is concerned, it is not a final order. Order itself shows that objections were invited and the matter was listed for disposal of the interim application. In the meantime, order for maintaining a status quo was passed. In such circumstances, multiplicity of proceedings may not arise. Interim order was passed by the Ld. DRT. Since the I.A. No. 2494 of 2022 is still pending, it would be appropriate that a direction be issued to the Ld. DRT to decide the I.A. expeditiously within a stipulated time. Accordingly, Appeal is liable to be allowed and matter is liable to be remanded to the DRT.

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Appeal is allowed. The matter is remanded back to Ld. DRT-3 Kolkata to decide the I.A. No. 2494 of 2022 within a period of one month from the date copy of the order is produced before the Ld. DRT. It is made clear that if any adjournment is sought by the SARFAESI Applicant, order passed by the Ld. DRT on 22.09.2022 regarding interim protection shall automatically stand vacated. Learned Counsel for the parties undertakes to argue the matter on the date fixed before the Ld. DRT. Parties are directed to appear before the Ld. DRT-3 Kolkata on 17^th July, 2023, the date already fixed.

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Copy of the order be supplied to Appellant and the Respondents and a copy be also forwarded to the concerned DRT.

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Copy of the Judgment/ Final Order be uploaded in the Tribunal’s Website.

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Order signed and pronounced by me in the open Court on this the 12^th day of July, 2023.

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Dated: 12^th July, 2023 tp

Tata Capital Financial Services Ltd. and Anr. v. Cygnus Pharmaceuticals Pvt. Ltd. and Ors.

Case brief

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Tata Capital Financial Services Ltd. and Anr. v. Cygnus Pharmaceuticals Pvt. Ltd. and Ors.

Case brief

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