Allowed

M s City Union Bank Limited v. M s Mohith Chemicals

DRT9 Mar 2023MA/25/2023

Case brief

AI extract

What is this about?

The Tribunal condoned a 247-day delay in re-presenting an Original Application for recovery of dues. It levied no costs but directed that interest for the defaulted period be considered only at the stage of issuing the Recovery Certificate to balance the bank's inaction against borrower default.

What did the court decide?

MA allowed subject to the levy of interest for the defaulted period being considered at the time of issuance of Recovery Certificate.

M s City Union Bank Limited versus M s Mohith Chemicals — Banking and Recovery | DRT (2023)

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MA No.25/2023 in OASR No.3230/2022 1

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09.03.2023

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IN THE DEBTS RECOVERY TRIBUNAL – III, CHENNAI

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Dated this the 09^th day of March, 2023

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

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MA No.25/23 in OASR No.3230/2022

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M/s.City Union Bank Limited, Villianur Branch, Rep. by its Branch Manager, Mrs.S.D.Narmada, No.26, First Cross, Vasantham Nagar, Villianur, Pondicherry – 605 110. ....Applicant

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Vs.

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M/s.Mohith Chemicals, Rep. by its Partners, Mr.R.Vinoth Kumar and Mr.R.Mohambigai, No.3, Ramanathapuram Main Road, Thondanatham Village, Villianur Commune, Puducherry – 605 502.

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Mr.R.Vinoth Kumar, S/o.Mr.P.Ravanan, No.21, Ward 1, Palayakara Street, Sekanur, Singanur (P), Villupuram – 604 001.

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Also at:

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Mr.R.Vinoth Kumar, S/o.Mr.P.Ravanan, No.158, Palayakara Street, Seekanur, Singanur (P) Villupuram – 604 001.

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MA No.25/2023 in OASR No.3230/2022 2

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09.03.2023

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Mr.R.Balamurugan, S/o.Mr.R.Rajendran, No.248, Mariamman Kovil Street (Colony) Ottai (R.V.) & (P), Villupuram – 605 109.

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Mrs.R.Moogambigai, W/o.Mr.Vinoth Kumar, No.158, Palayakara Street, Seekanur, Singanur (P), Villupuram – 604 001.

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Mrs.R.Seethapathy, W/o.Mr.P.Ravanan, No.158, Palayakara Street, Seekanur, Singanur (P) Villupuram – 604 001. ….Defendants

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Counsel for Applicant : M/s.A.Karthikeyan & R.Devi.

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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 247 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 OA was returned for compliance on 07.04.2022. However, as the counsel on record for applicant bank was unwell and was undergoing treatment for jaundice, applicant bank 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.16,48,502.79p together with future interest at the rate of 17.5% p.a. and

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MA No.25/2023 in OASR No.3230/2022 3

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09.03.2023

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Rs.8,12,833.61p together with interest at the rate of 11.5% p.a. and penal interest at the rate of 2% p.a. 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 (247 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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5. 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 09^th day of March, 2023)

M s City Union Bank Limited v. M s Mohith Chemicals

Case brief

What is this about?

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M s City Union Bank Limited v. M s Mohith Chemicals

Case brief

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