Allowed

State Bank of India v. Gopi Reddy

DRT6 Sept 2023MA/125/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the State Bank of India's motion for condoning a 128-day delay in re-presenting an Original Application. The court directed that interest for the defaulted period be levied on the bank before issuing a Recovery Certificate, pending its consideration in future proceedings.

What did the court decide?

The Motion Application was allowed on the condition that the subject of levy of interest for the defaulted period of 128 days be considered at the time of drawing the Recovery Certificate.

State Bank of India versus Gopi Reddy — Banking and Recovery | DRT (2023)

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MA No.125/2023 in OASR No.662/2023

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06.09.2023

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IN THE DEBTS RECOVERY TRIBUNAL – III, CHENNAI

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Dated this the 06^th day of September, 2023

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

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MA No. 125/23 in OASR No.662/2023

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State Bank of India,

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Rep. by its Authorised Officer, RACPC – MRC Nagar Branch, No.4, Santhome High Road, Mylapore,

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Chennai – 600 004. .....Applicant

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Vs.

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Mr.Gopi Reddy, S/o.Subramaniyam Reddy, No.2/5, 1^st Floor, VV Koil Lane, Choolai,

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Chennai – 600 112. ….Defendant

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Counsel for Applicant : M/s.A.Kumar.

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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 128 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 counsel on record and his clerk had to isolate themselves owing to attack of Covid virus, 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

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Rs.61,25,178/- together with future interest at the rate of 8.6% p.a. compounded

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MA No.125/2023 in OASR No.662/2023

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06.09.2023

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monthly rests from defendant. 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 defendant 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 (128 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 steno (GS), transcribed by her, corrected, signed and processed through E-drt on this the 06^th day of September, 2023)

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

State Bank of India v. Gopi Reddy

Case brief

What is this about?

What did the court decide?

State Bank of India v. Gopi Reddy

Case brief

What is this about?

What did the court decide?

What the court decided

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