Allowed

State Bank of India v. R P Motors

DRT23 Aug 2022MA/78/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for condonation of a 152-day delay in re-presenting the Original Application due to administrative reasons and transfer of officials. Residence of Registry. Hold. The question of levying interest for the defaulted period is reserved for consideration at the time of issuing the Recovery Certificate.

What did the court decide?

M.A. allowed on condition to consider levy of interest for the 152-day default period at the time of drawing the Recovery Certificate.

State Bank of India versus R P Motors — Banking and Recovery | DRT (2022)

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MA No.78/22 in OASR No.7188/2021 23.08.2022

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IN THE DEBTS RECOVERY TRIBUNAL – III, CHENNAI

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Dated this the 23^rd day of August, 2022

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

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M.A. No. 78/22 in OASR No.7188/2021

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State Bank of India, SME Centre

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86A & B 2^nd Main Road, Ambattur Industrial Estate, Chennai – 600 058 Represented by its Branch Manager R Mohan S/o P Ramalingam

.....Applicant

Vs.

1. R.P. Motors

69, Wall Tax road

Sowcarpet, Chennai – 600 079 Represented by its proprietor

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P. Sathish Kumar S/o Padmanabhan

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2. P. Sathish Kumar

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S/o Padmanabhan 1, Lotus Colony, 1st Street, Nandanam, Chennai – 600 035.

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….Defendants

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Counsel for Applicant : Mrs.S.R. Sumathy

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

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MA No.78/22 in OASR No.7188/2021 23.08.2022

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It is the case of the petitioner / applicant bank that there was delay in ascertaining the correct details and rectifying the defects due to transfer of officials and other administrative reasons. Hence, they could not re-present the OA within time granted by this Tribunal and therefore 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.2,36,39,574.94p/- together with future interest at the rate of 11.55% p.a. compounded monthly 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 (152 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

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MA No.78/22 in OASR No.7188/2021 23.08.2022

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period at the time of drawing of the Recovery Certificate in case for an order thereto by the Tribunal.

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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 23^rd day of August, 2022)

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

State Bank of India v. R P Motors

Case brief

What is this about?

What did the court decide?

State Bank of India v. R P Motors

Case brief

What is this about?

What did the court decide?

What the court decided

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