Kakan Rice Mills Private Limited v. Bank of Baroda and Ors.
Case brief
What is this about?
The Bench recalled an Appellate Tribunal order that had allowed a procedural waiver because the appellant borrower concealed the true quantum of deposits made prior to the demand notice and misrepresented them before the Tribunal.
What did the court decide?
Recalled the order dated 22.03.2023 allowing waiver; directed appellant to deposit 50% of the amount demanded in the notice dated 18.12.2019 after deducting Rs. 10.00 lacs already deposited.
Appeal Dy. No. 723/2023 Date: 15.05.2024
Kakkan Rice Mills Pvt. Ltd. Vs. Bank of Baroda and Ors.
Present: Shri Alok Rai, counsel for the appellant, Shri Maneesh Mehrotra, counsel for the respondent-Bank, None for the respondents,
ORDER
Learned counsels for the parties were heard on the recall application filed by the respondent-Bank and the case was reserved for orders vide order dated 28.02.2024.
The present recall application has been filed by the respondent-Bank for recalling the order dated 22.03.2023, by which the waiver application has been allowed and the interim relief also.
Learned counsel for the respondent-Bank/recall applicant has drawn attention of this court to page No. 12 of the waiver application dated 03.11.2022 filed by the appellant, which is statement of account and has stated that last entry of the said statement of the account is dated 11.03.2021, which shows that Rs. 10.00 lacs has been deposited. The learned counsel has further drawn attention of this court to page No. 102 of the memo of appeal, which is notice dated 18.12.2019 under section 13(2) of the SARFAESI Act and has stated that the total amount due against the appellant as per the said notice was Rs. 10,62,83,307/-, which is depicted from page No. 103 of the memo of appeal. The learned counsel also submitted that by misleading this court that the appellant has deposited Rs. 3,28,70,730.58 on different dates, which is approximately 30% of the total demanded amount, is incorrect, as the appellant has only deposited the amount as mentioned at page No. 12 of the waiver application, although the deposit, which was made
Issues for consideration
3 issues framed by the court
Whether the Appellate Tribunal's order allowing a waiver of pre-deposit was passed based on concealed facts by the borrower.
Whether a second demand notice issued after restructuring a loan account is sustainable in law.
Whether the Appellate Tribunal has the power to recall its own order on the grounds of concealment of material facts.
Parties & counsel
- appellant
Kakkan Rice Mills Pvt. Ltd.
- respondent
Bank of Baroda
Coram
R. D. Khare
Case details
As recorded by the court registry
All orders in this case
15 orders share this CNR
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