Disposed

Union Bank of India v. M/S Mithra Fluidtrans Private Limited

DRAT21 Aug 2024MISC APPEAL/54/2024

Case brief

AI extract

What is this about?

The appellate tribunal dismissed the miscellaneous appeal against an interim order staying proceedings and un-freezing accounts, directing the lower tribunal to decide the stay application expeditiously after hearing parties.

What did the court decide?

Misc. appeal disposed of. Direction to DRT-II Hyderabad to decide I.A. 1146 of 2024 expeditiously after hearing parties.

Union Bank of India versus M/S Mithra Fluidtrans Private… — Banking and Recovery | DRAT (2024)

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REPORTABLE / NOT REPORTABLE

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IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA

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Misc. Appl. No. 54 of 2024

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(Arising out of S.A. 179 of 2024 in DRT-II Hyderabad)

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THE HON’BLE JUSTICE SHRI ANIL KUMAR SRIVASTAVA, CHAIRPERSON

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Order No. 04

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21.08.2024

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UNION BANK OF INDIA Having Registered Office At Asset Recovery Branch, 4th Floor, Andhra Bank Building, R.R. Apparao Street, Vijaywadha, AP 520001.

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... Appellant

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--Vs--

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M/S Mithra Fluidtrans Private Limited Having Office At D. No. 4, D. No. 190, Veeravalli Village, Bapulapadu Mandal, Krishna Dist. AP – 521110.

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... Respondents

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For Appellant : Mr. Ranajit Chowdhury, ld. adv. For Respondent : Mr. V. Ravinder, ld. adv.

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THE APPELLATE TRIBUNAL :

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Heard learned counsel for the parties and perused the records.

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Instant Misc. appeal has arisen against the order dated 19.04.2024 passed by learned DRT-II Hyderabad in I.A. No. 1145

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of 2024 and I.A. No. 1146 of 2024 in S.A. No. 179 of 2024 (M/s Mithra Fluidtrans Pvt. Ltd. Vs. Union Bank of India).

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As far as pleadings of the parties are concerned, a

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securitization application u/s 17 of the SARFAESI Act, 2002 (herein after referred to as Act) was filed by the SARFAESI applicant on different grounds interalia alleging that certain credit facilities were sanctioned by the bank in favour of the applicant.

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It is alleged that the bank illegally classified the loan account as NPA while the same was not an NPA account. O.A. was also filed

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by the bank being No. 170 of 2024 before the DRT Visakhapatnam. SARFAESI actions were also initiated by the bank against the applicant which was challenged by filing the S.A. on different grounds alleging that loan account was wrongly classified as NPA. Pending S.A., I.A. No. 1145 of 2024 was filed praying for a direction to the bank to un-freeze all the accounts of the applicant. I.A. No. 1146 of 2024 was filed praying for stay of

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all further proceedings pursuant to the possession notice dated 07.03.2024. Learned DRT after hearing the learned counsel for

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the parties granted time to the bank for filing counter affidavit against both the I.A.s. Further, pending disposal of the S.A., conditional order was passed to the effect that all further proceedings in pursuance of possession notice dated 07.03.2024

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shall remain stayed subject to payment of Rs.3.00 crore in three instalments of Rs.1.00 crore each by the applicant. Further, I.A. 1145 of 2024 is allowed with the direction to the bank to unfreeze all the accounts of the applicant.

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Feeling aggrieved by the impugned order, appellant bank

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preferred the appeal.

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Learned counsel for the appellant bank submits that the impugned order would show that time was granted for filing opposition. It is further submitted that conditional order to unfreeze all the accounts of the applicant was passed without recording any reason. Learned counsel further submits that the impugned order was passed as an interim measure. I.A. 1146 of 2024 is still pending. Learned counsel for the respondents opposes the miscellaneous appeal.

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After going through the records, I find that opportunity of

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filing objections against both the I.A.s was granted to the bank. It is submitted that bank has already filed the opposition to the I.A.s before the learned DRT. Opposition to the S.A. was also filed by the bank. I.A. 1146 of 2024 as well as S.A. 179 of 2024 are still pending. Both the I.A. No. 1145 of 2024 and I.A. No.

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1146 of 2024 are inter-connected. Order was passed by the

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learned DRT for affording opportunity of filing opposition to the bank and thereafter bank filed the opposition. In such

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circumstances, it would be appropriate that learned DRT should decide the I.A. 1146 of 2024 expeditiously after considering the opposition filed by the bank and affording an opportunity of hearing to both the parties. Since the S.A. is still pending no observations or finding are being recorded as it may affect the merit of the matter pending before the DRT.

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Accordingly, Misc. appeal is liable to be disposed of with the

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direction to learned DRT to decide the I.A. 1146 of 2024 expeditiously after affording opportunity of hearing to the parties in accordance with law.

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O R D E R

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Misc. appeal no. 54 of 2024 is disposed of with direction to

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the learned DRT-II Hyderabad to decide the I.A. 1146 of 2024 expeditiously after affording opportunity of hearing to the parties in accordance with law.

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File be consigned to record room.

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Copy of the order be supplied to the appellant and the respondents and a copy be also forwarded to the concerned DRT.

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Copy of the judgement/Final Order be uploaded in the

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Tribunal’s website.

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Order dictated, signed and pronounced by me in the open Court on this the 21^st day of August, 2024.

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(Anil Kumar Srivastava, J) Chairperson

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Dated : 21.08.2024 /pkb

Union Bank of India v. M/S Mithra Fluidtrans Private Limited

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Union Bank of India v. M/S Mithra Fluidtrans Private Limited

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