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Jm Financial Assets Recontruction Company Private Limited v. Maa Durga Commotrade Private Limited

DRAT19 Feb 2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal set aside its order staying the withdrawal of title documents due to a pending NCLT moratorium. It held that a settlement letter between the appellant and guarantors must be verified before the moratorium can effectively block such a disposition.

What did the court decide?

Impugned order dated 03.12.2024 set aside; direction to verify settlement letter dated 16.8.2024 and pass appropriate orders regarding withdrawal of title documents (Exts. Z-13 to Z-16).

Jm Financial Assets Recontruction Company Private… — Civil Procedure and Limitation | DRAT (2025)

¶1

IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA

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HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA CHAIRPERSON

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Misc. Appeal Diary No. 11 of 2025 (Arising out of O.A. 436 of 2015 in DRT, Cuttack)

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Order No. 07

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19.02.2025

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JM Financial Asset Reconstruction Company Limited … Appellant -VsMaa Durga Commotrade Private Limited & 5 Others … Respondents

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Mr. Krishnaraj Thakkar, Learned Senior Advocate (Virtual) with Mr. Sudarshan Agarwal, Learned Counsel for the Appellant

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THE APPELLATE TRIBUNAL :

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For Admission

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Heard the Learned Counsel for Appellant and perused the records.

¶11

Instant appeal has been preferred against order dated 03.12.2024 passed by Learned DRT in O.A. 436 of 2015 whereby Learned DRT disposed of I.A. 1507 of 2024 and I.A. Diary No. 2119 of 2024.

¶12

It appears that an O.A. is pending before the Learned DRT wherein a petition was filed by the Secured Creditor. I.A. 1507 of 2024 was for withdrawal of title documents pertaining to the Schedule property as Exts. Z-13 to Z-16 with a further prayer to take the settlement letter dated 16.8.2024 on record. Learned DRT passed the impugned order on the ground that the matter is pending before NCLT and there is a moratorium hence no effective order could be passed.

¶13

Learned Counsel for Appellant would submit that Appellant is the Secured Creditor and the lender who entered into the settlement with the Guarantors and filed the settlement letter stating that certain documents are to be released, Exts. Z-13 to Z-16, thereafter Appellant

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would be able to proceed with the O.A. and other proceedings as per law.

¶16

As far as issue of moratorium is concerned that will not come in the way of taking the settlement letter on being verified by the Learned DRT. When a settlement is arrived between the Appellant and the Guarantors, Learned DRT is under an obligation to verify the same. Accordingly, the order dated 3^rd December, 2024 is set aside with a direction to verify the settlement letter dated 16.8.2024 in accordance with law. Thereafter Learned DRT should pass appropriate orders regarding prayer (a) of I.A. 1507 of 2024.

¶17

Accordingly, the appeal stands disposed of.

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Appellant is directed to appear before Learned DRT, Cuttack on 11^th March, 2025.

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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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File be consigned to Record room.

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Order dictated and pronounced in open Court.

¶22

(Anil Kumar Srivastava,J) Chairperson

¶23

Dated: 19^th February, 2025 02/ac

Jm Financial Assets Recontruction Company Private Limited v. Maa Durga Commotrade Private Limited

Case brief

What is this about?

What did the court decide?

Jm Financial Assets Recontruction Company Private Limited v. Maa Durga Commotrade Private Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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