Allowed

Canara Bank v. M/S Nxaark Technologies Pvt. Ltd.

DRT10 Nov 2023MA/112/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application for condonation of a 277-day delay in re-presenting an original application. It held that while the delay was due to the bank's inaction, it was justifiable, subject to a conditional note for interest consideration later.

What did the court decide?

Condonation of delay of 277 days granted on condition that interest levy for the defaulted period be considered at the time of issuance of Recovery Certificate.

Canara Bank versus M/S Nxaark Technologies Pvt. Ltd. — Banking and Recovery | DRT (2023)

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MA No.112/2023 in OASR No.1951/2023

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10.11.2023

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IN THE DEBTS RECOVERY TRIBUNAL – III, CHENNAI

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Dated this the 10^th day of November, 2023

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Present: Shri Ganapathi K.R.K.

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Presiding Officer

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MA No. 112/23 in OASR No.1951/2023

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Canara Bank, Chennai Mount Road Branch, Rep. By Manager, No.781-785, Royala Towers, Anna Salai, Chennai – 600 002. ....Applicant

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Vs.

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Ms.NXAARK Technologies Pvt Ltd., 19/4 Avenue Road, 3^rd Floor (Head office), Ghatala Towers, Nungambakkam, Chennai – 600 034.

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Also at: No.8, “A” Wing, 2^nd Floor, 15^th Cross, 6^th Phase, J.P.Nagar, Bangalore – 560 078. Karnataka.

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Mr.D.Sathiyamoorthy, S/o.Mr.Dakshina Moorthy, No.137/1704, South City Arekere, Mico Layout, Bangalore, Karnataka – 560 076.

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Mr.R.Dhamodaran, S/o.Mr.Ramakrishnan, No.5/A5, 3^rd Cross Road, SIPCOT IT Park, Chennai – 603 103.

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Mrs.Bharathy, Flat No.1704, B7, South City, Kothanur Village, Uttarattalli, Bangalore – 560 076.

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Mr.Suresh,

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MA No.112/2023 in OASR No.1951/2023

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10.11.2023

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S/o.Mr.Dakshina Moorthy, Flat No.1702, Ajmera Infinity, Electronic City, Neeladri Road, Bangalore – 560 100.

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Mr.Tom C Sebastian, No.1-8/44, 9/A/5, Opp Police Lines, S.P.Road, Hyderabad, Andhra Pradesh – 500 016.

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Mr.D.Jagadish, S/o.Mr.Dakshina Moorthy, Flat No.1703, 7^th Floor, P Block, Ajmera Infinity, Daddathogur, Begar Hobli, Bangalore – 560 100. ….Defendants

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Counsel for Applicant : M/s.R.Kumari.

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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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277 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, however, as counsel on record could not comply with the returns due to her mother’s ailment, she had instructed the junior counsel to follow the case, who fell sick and therefore it is their case that 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.1,46,74,815/- together with future interest and costs. It is not explained anywhere in

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MA No.112/2023 in OASR No.1951/2023

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10.11.2023

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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 defendants. 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 (277 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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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 10^th day of November, 2023)

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

Canara Bank v. M/S Nxaark Technologies Pvt. Ltd.

Case brief

What is this about?

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Canara Bank v. M/S Nxaark Technologies Pvt. Ltd.

Case brief

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What did the court decide?

What the court decided

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