Allowed

Ms Rima Transformers and Conductors Pvt. Ltd. and Others v. Canara Bank

DRAT22 Apr 2025MISC APPEAL/6/2024

Case brief

AI extract

What is this about?

This Tribunal allowed an appeal filed under Section 20 of the RDDB & FI Act. The court set aside an order dismissing an application to set aside an ex-parte order. The court held that the appellant's delay in filing a written statement was acceptable due to pending writ proceedings. The appellant was given time to file the written statement before the DRT.

What did the court decide?

The order dismissing the set aside petition was set aside; the appellant was given 10 days time to file the written statement before the DRT.

Ms Rima Transformers and Conductors Pvt. Ltd. and Others… — Banking and Recovery | DRAT (2025)

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IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

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Dated the 22^nd day of April, 2025

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PRESENT: HON’BLE MR. JUSTICE G. CHANDRASEKHARAN

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CHAIRPERSON

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MA 6/2024

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(arising out of IA 1709/2021 in OA 1053/2019 on the file of DRT - I, Bengaluru)

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Between

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M/s Rima Transformers and Conductors Pvt Ltd. Represented by its Managing Director Mr. Diwakar M. Shetty S/o Mr.Mahabala Shetty No. 18-D, 2^nd Phase Peenya Industrial Area Bengaluru - 560058. ...Appellant

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And

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1. Canara Bank

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Represented by its Manager SME Peenya Branch No.D-473, 13^th Cross, 4^th Phase Rotary Udyog Bhavan Peenya Industrial Area Bengaluru - 560058.

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2. Mr. Diwakar M. Shetty S/o Mr.Mahabala Shetty Managing Director M/s Rima Transformers and Conductors Pvt Ltd.

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3. Mr.Ritesh D. Shetty S/o Mr.Diwakar Shetty Director

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M/s Rima Transformers and Conductors Pvt Ltd.

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4. Mrs. Rekha Diwakar Shetty W/o Mr.Diwakar Shetty Director M/s Rima Transformers and Conductors Pvt Ltd.

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5. Mrs. Rima S.Hegde D/o Mr.Diwakar Shetty Director M/s Rima Transformers and Conductors Pvt Ltd.

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Respondents 2 to 5 are residing at: No.701, Woodstock, J.P.Road Versova, Andheri West Mumbai - 400061 …..Respondents

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Counsel for Appellant : Mr. A.Arun Babu Counsel for R1 : Mrs. A.Abirami

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R2 to R5 are given up.

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ORDER

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This appeal is filed under Section 20 of RDDB & FI Act, challenging the order passed by the Ld. Presiding Officer, DRT – 1, Bengaluru in IA 1709/2021 in OA 1053/2019 dated 29.11.2021.

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It is the submission of Ld. Counsel for appellant that appellant was not able to file the written statement in OA 1053/2019 within 45 days of time. Therefore, appellant/respondent in OA was set ex-parte. To set aside the ex-parte order, appellant filed IA 1709/2021 and that was dismissed.

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It is the further submission of Ld. Counsel for appellant that appellant offered an OTS and bank accepted the OTS for Rs.18 crores. In terms of the OTS, appellant has paid Rs.19 Crores. Thereafter, the bank had cancelled the OTS through a communication dated 23.03.2021 on the ground that payments were not made as per the OTS proposal. Challenging this cancellation of OTS, appellant filed Writ Petition 8576/2021, before the Hon’ble High Court of Karnataka, Bengaluru. The Hon’ble High Court of Karnataka, Bengaluru passed an order on 14.12.2022 allowing the Writ petition, quashing the communication dated 23.03.2021 of the respondent bank, quashing the e-auction sale and issued Mandamus to the bank to take OTS

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offer as accepted by the bank, to its logical end. This is the reason for not filing the written statement in time. For not filing the written statement, appellant was set exparte and the set aside petition filed by the appellant was also dismissed. Therefore, this appeal is filed. It is also submitted by the appellant that the said OA is still pending before the DRT.

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Representing counsel for respondent objects this application and seeks time for adjournment on the ground that her senior is not well.

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This Tribunal finds that the OA 1053/2019 is pending from the year 2019. The reason attributed by the appellant for not filing the written statement in time is just and acceptable. In the said circumstances, the order passed by the Ld. Presiding Officer, DRT – 1, Bengaluru in IA 1709/2021 in OA 1053/2019 dated 29.11.2021, is hereby set aside.

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In the result, this Appeal MA 6/2024 is allowed. Appellant is given 10 days time from the date of receipt of this order for filing written statement before DRT – 1, Bengaluru. On filing of such written statement, the Ld. Presiding Officer, DRT – 1, Bengaluru, is directed to dispose OA 1053/2019 as expeditiously as possible on merits and in accordance with law.

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Pending IAs, if any, stand closed.

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[Dictated to Steno (DD), transcribed by her, corrected, signed and pronounced by me in open court, this 22^nd April, 2025]

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Sd/- (JUSTICE G. CHANDRASEKHARAN) CHAIRPERSON

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Ms Rima Transformers and Conductors Pvt. Ltd. and Others v. Canara Bank

Case brief

What is this about?

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Ms Rima Transformers and Conductors Pvt. Ltd. and Others v. Canara Bank

Case brief

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