Allowed

Canara Bank v. M s Ganga Engineering Works

DRT10 Nov 2022MA/116/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application condoning a 201-day delay by Canara Bank in re-presenting an Original Application for recovery. The court reserved judgment on the interest claimed for the delayed period to be decided during the Recovery Certificate stage.

What did the court decide?

Condonation of 201-day delay in re-presenting Original Application; condition that future interest default during delay period to be considered at Recovery Certificate stage.

Canara Bank versus M s Ganga Engineering Works — Banking and Recovery | DRT (2022)

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MA 116/22 in OASR 1090/22

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10.11.2022

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IN THE DEBTS RECOVERY TRIBUNAL – III, CHENNAI

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Dated this the 10^th day of November, 2022

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Present: Shri Ganapathi K.R.K. Presiding Officer

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MA No. 116/22 in OASR No.1090/2022

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Canara Bank SME Branch Represented by its Chief Manager No.3, M.T.H Road, Padi Chennai – 600 050 .....Petitioner

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Vs.

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M/s. Ganga Engineering Works Plot No.15, SF No.462, Amman Koil Street, Kuppam Ambattur Industrial Estate Chennai – 600 058

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Mrs. Achammal W/o Mr. Kasi Raj No.6/91, Mogappair West J.J. Nagar West, Chennai – 600 037 ….Respondents

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Counsel for Applicant : M/s. S. Sundaramoorthy Jeyaseelan

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O R D E R

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This MA is filed by the Petitioner / Applicant Bank for condonation of delay of

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201 days in re-presenting the Original Application after complying with the office objections.

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It is the case of the petitioner / applicant bank that the objections were duly contemplated to be complied upon but however as the case bundle got mixed up with

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MA 116/22 in OASR 1090/22

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10.11.2022

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disposed cases in counsel’s office and could be traced out only after a few days, they could not re-present the OA within time granted by this Tribunal and prays to condone the delay.

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On perusal of records, it is seen that this is an OA filed for recovery of sum of Rs.34,01,858.02p together with future interest at the rate of 10.50% p.a. with monthly rests from defendants. It is not explained anywhere in the petition as to how applicant bank will be entitled to claim interest at the contractual rate for the period of delay, which is owing to their inaction and not attributable to any action of the defendant. As the period of delay is on the very high side, condonation of the same by levying formal amount in the form of costs payable either to the Library Fund or to any Charity organization as a measure of reprimand would not be justifiable when compared with the levy of interest burden on the defendants for the period of default on the part of the applicant bank for no fault of the borrower.

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However, in the circumstances, this MA is allowed on the condition that the subject of levy of interest for the defaulted period (201 days) which is condoned at this stage of the OA proceedings shall stand for consideration at the time of issuance of Recovery Certificate by the progress of the case and the conduct of the case on behalf of the applicant bank till the stage of issuance of the recovery certificate. Registry is directed to put up a note accordingly for consideration of claim of interest for this default period at the time of drawing of the Recovery Certificate in case for an order thereto by the Tribunal.

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MA 116/22 in OASR 1090/22

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10.11.2022

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Registry is directed to number the OA, if otherwise found to be in order.

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(Dictated to PS, transcribed by her, corrected, corrected, signed and processed through E-drt on this the 10^th day of November, 2022)

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Sd/- (GANAPATHI K.R.K) PRESIDING OFFICER

Canara Bank v. M s Ganga Engineering Works

Case brief

What is this about?

What did the court decide?

Canara Bank v. M s Ganga Engineering Works

Case brief

What is this about?

What did the court decide?

What the court decided

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