Disposed

Shree Ganesh Tubewell and Borewell v. Jijau Commercial Co. Operative Bank Ltd.

DRAT4 Oct 2024MISC APPEAL/55/2024

Case brief

AI extract

What is this about?

In an appeal impugning an order declining protection against SARFAESI measures, the court held the Debt Recovery Tribunal is competent to determine the correctness of the demanded amount and directed the tribunal to dispose of applications expeditiously.

What did the court decide?

Appeal disposed of; directions given to DR.T. to decide correctness of amount and dispose of SA within three months; interim protection continued.

Shree Ganesh Tubewell and Borewell versus Jijau Commercial… — Banking and Recovery | DRAT (2024)

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

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Misc. Appeal No.55/2024

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Between

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Shree Ganesh Tubewell and Borewell & Ors. … Appellant/s V/s. Jijau Commercial Co-operative Bank Ltd. …Respondent/s

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Jijau Commercial Co-operative Bank Ltd.

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Mr Atul Pande, Advocate for Appellant.

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Mr Gajendra R. Sadar, Advocate for Respondent.

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The appellants are in appeal impugning the order dated 02.08.2023 in Interlocutory Application (I.A.) No. 1631 of 2023 in Securitisation Application (S.A.) No. 29 of 2020 where they declined to grant any protection concerning the Sarfaesi measures initiated by the respondent bank of recovery of the debt under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”, for short). The appeal was entertained on finding that there was a prima facie case and the appellants were directed to deposit Rs.25 lakhs as pre-deposit which has already been deposited and the appeal has been taken on file.

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The main objection about the Sarfaesi measures appears to be regarding the correctness of the amount which has been demanded by the respondent bank. The Ld. Counsel appearing for the appellants submits that an expert will have to be appointed to verify the

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correctness of the account statement and only that amount be determined and directed to be recovered. To this submission, the Ld. Counsel for the respondent bank submits that the appellants have the alternate remedy for approaching the Co-operative Court to get the dispute resolved. Whether the matter has to be decided by a Cooperative Court or whether the D.R.T. is competent to decide on whether the amount which has been demanded under Sec. 13(2) recovered and the fact regarding the correctness of the amount will have to be decided ultimately by the D.R.T. Therefore, I find that the appeal itself can be disposed of with the direction to the D.R.T. to dispose of any application filed by the applicants/appellants for appointment of an expert to examine the account and also dispose of the S.A. as expeditiously as possible at any rate within three months from the date of order.

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The Misc. Appeal is disposed of.

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Interim protection granted to the appellants shall continue till the disposal of the S.A. within three months.

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mks-17

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Sd/Chairperson

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Shree Ganesh Tubewell and Borewell v. Jijau Commercial Co. Operative Bank Ltd.

Case brief

What is this about?

What did the court decide?

Shree Ganesh Tubewell and Borewell v. Jijau Commercial Co. Operative Bank Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

All orders in this case

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