Allowed

Bank of Baroda v. Madras Gange Room Equipment (P) Ltd.

DRAT22 Jul 2026MISC APPEAL/5/2025

Case brief

AI extract

What is this about?

The Debt Recovery Appellate Tribunal allowed the Bank of Baroda's appeal against a cryptic, non-reasoned order by the DRT Presiding Officer who raised attachment upon mere deposit of dues. The order considered the merger of companies involved. The Tribunal set aside the impugned order and remitted the matter for fresh disposal with opportunity to parties.

What did the court decide?

Order of learned Presiding Officer in MA 6/2019 is set aside and matter remitted for disposal in manner known to law. Parties to bear own costs.

Bank of Baroda versus Madras Gange Room Equipment (P) Ltd. — Banking and Recovery | DRAT (2026)

¶1

IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI

¶2

Dated the 22^nd day of July, 2026

¶3

PRESENT : HON’BLE MR. JUSTICE G. CHANDRASEKHARAN

¶4

CHAIRPERSON

¶5

MA 5/2025

¶6

(Arising out of MA 6/2019 in DRC No.805/2015 in O.A. No. 516/2015 on the file of DRT-II, Chennai)

¶7

Between

¶8

Bank of Baroda, S.I.E.T. Branch, Teynampet, Chennai 600 018

¶9

Now handling by ARM Branch,

¶10

Rep. by its Chief Manager,

¶11

Pondy Bazaar Road, T. Nagar,

¶12

Chennai 600 017

¶13

Presently at

¶14

1^st floor, 74 Theagaraya Road,

¶15

T. Nagar, Chennai 600 017. … Appellant

¶16

And

¶17

M/s Madras Guage Room Equipment Private Limited,

¶18

No. 753 Anna Salai, Chennai 600 002

¶19

Also at

¶20

D-2 Industrial Estate Ambattur, Chennai 600 058.

¶21

Mr. K.S. Shriram, S/o K.R. Swaminathan, Lambath Avenue, Bawa Street, Alwarpet, Chennai -18.

¶22

¶23

Presently at D2, F2, VGN Minerva Road, 273 Guruswamy Road, Nolambur, Chennai 600 095.

¶24

Mrs. Subbulakshmi, W/o Mr. K.S. Shiram, Lambath Avenue, Bewa Street, Alwarpet, Chennai 18 Presently at D2, F2, VGN Minerva Road, 273 Guruswamy Road, Nolambur, Chennai 600 095. . …Respondents

¶25

Counsel for Appellant : M/s. Ramasubramaniam Raja Counsel for Respondents : R1 to R3- ex-parte

¶26

ORDER

¶27

This appeal is filed against the order passed by the learned Presiding Officer, DRT-II, Chennai in OA 516/2015 on 26.04.2019. This order reads as follows:-

¶28

“ Both sides present. Passed over and called again. M/s. Srinath Sridevan, Advocate filed change of vakalat for respondent bank. Petitioner in MA filed additional documents. Heard arguments in MA 6/19. Petitioner in MA deposited entire due amount as per applicant bank statement on 03.01.2019. MA 6/19 is allowed and attachment is raised.”

¶29

¶30

It is submitted by the learned counsel for the appellant that the Tribunal allowed OA 163/1999 filed and recovery certificate was ordered to be issued for Rs.25,63,406.94P.with pendent lite interest. Accordingly, the recovery certificate was issued. E-auction proceedings was initiated for the sale of the property, which was attached during the recovery proceedings.

¶31

It is further submitted that appellant-Bank filed OA 138/2015 against Greemach ‘CNC’ Limited and 4 others. That OA was also allowed. The Directors of M/s. Madras Guage Room Equipment (P) Ltd., viz., respondents 2 and 3 are also directors of Greemach ‘CNC’ Limited. Therefore, the merger between M/s. Madras Guage Room Equipment (P) Ltd., and Greemach ‘CNC’ Limited has to be restricted for releasing the debt due in respect of both the OAs. Claim. Learned Presiding Officer, merely by deposit of due amount as per the Bank Statement dated 03.01.2019 allowed the order of attachment to be raised in MA 6/2019. Thus, this appeal.

¶32

The typed set of records does not contain the application for attachment and the order passed thereon. However, it is seen from the order impugned that the grounds raised in MA 6/2019 and the objections raised were not

¶33

¶34

considered by the learned Presiding Officer. The order of learned Presiding Officer is cryptic and non-reasoned order. In this view of the matter, order passed by the learned Presiding Officer in MA 6/2019 in DRC 805/2015 in OA 516/2015 on 26.04.2019 is set aside and the matter is remitted to the learned Presiding Officer, DRT-II, Chennai for disposal in the manner known to law by giving opportunities to both parties. Accordingly, this appeal is allowed. The learned Presiding Officer, DRT-II, Chennai is directed to dispose the MA 6/2019 in OA 516/2015 as expeditiously as possible on merits and in accordance with law. Parties shall bear their own costs. Pending IAs, if any, shall stand closed.

¶35

[Dictated to Steno (ra) in open court, transcribed by her, corrected and signed by me, this 22^nd day of July, 2026]

¶36

Sd/[Justice G. Chandrasekharan] CHAIRPERSON

¶37

Bank of Baroda v. Madras Gange Room Equipment (P) Ltd.

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Madras Gange Room Equipment (P) Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

All orders in this case

Similar cases

R P K Jeyakumar versus Axis Bank

Arasu Filling Station versus Indian Overseas Bank

M S Dd Agency versus Canara Bank

V.Velayutham versus Laxmi Vilas Bank

Hydrose K S versus South Indian Bank

Varalakshmi versus Axis Bank