Allowed

Canara Bank v. Om Engineering Works

DRT22 Aug 2023MA/108/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed a Money Application filed by Canara Bank for condonation of a 275-day delay in re-presenting its Original Application due to a mixing-up of records. The Tribunal directed that the levy of interest on defendants for the condoned delay period be considered later at the time of issuance of the Recovery Certificate.

What did the court decide?

Money Application for condonation of delay allowed on condition that levy of interest on defendants for the defaulted period will be considered at the time of issuance of Recovery Certificate.

Canara Bank versus Om Engineering Works — Company and Corporate | DRT (2023)

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MA No.108/2023 in OASR No.1059/2022

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22.08.2023

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IN THE DEBTS RECOVERY TRIBUNAL – III, CHENNAI

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Dated this the 22^nd day of August, 2023

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

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MA No. 108/23 in OASR No.1059/2022

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Canara Bank,

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SME Ambattur Branch, No.3, M.T.H.Road, Padi, Chennai – 600 050,

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Represented by its Chief Manager. .....Applicant

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Vs.

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M/s.Om Engineering Works, Proprietor Mr.C.Ramesh,

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No.62-A, Mariamman Koil Street, Pattravakkam,

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Sidco Industrial Estate,

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Chennai – 600 098.

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Mr.C.Ramesh,

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No.138, Jawahar Street, Devar Nagar, Padi,

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Chennai – 600 050. ….Defendants

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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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275 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 although the returns were contemplated to be compiled upon, however, as the OA booklet got mixed up with disposed cases, the same could not be represented within time granted by this Tribunal.

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MA No.108/2023 in OASR No.1059/2022

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22.08.2023

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It is submitted that immediately after tracing out the OA booklet, the same has been represented after complying with the returns. Thus submitting, applicant bank prayed for condonation of delay.

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On perusal of records, it is seen that this is an OA filed for recovery of sum of Rs.54,87,295.31p viz., Rs.21,20,389.29p in respect of Open Cash Credit Loan together with future interest at the rate of 10.90% p.a. compounded monthly rests, Rs.10,12,828/- in respect of Guaranteed Emergence Credit Loan together with future interest at the rate of 7.50% p.a. compounded monthly rests and Rs.23,54,078.02p in respect of MSME-MFG IND loan together with future interest at the rate of 9.80% p.a. compounded 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 (275 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

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MA No.108/2023 in OASR No.1059/2022

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22.08.2023

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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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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, signed and processed through E-drt on this the 22^nd day of August, 2023)

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

Canara Bank v. Om Engineering Works

Case brief

What is this about?

What did the court decide?

Canara Bank v. Om Engineering Works

Case brief

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What did the court decide?

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