Dismissed

Maruthi Plastics v. Canara Bank

DRT15 Dec 2023SA/106/2023

Case brief

AI extract

What is this about?

This order dismissed the applicant's SARFAESI application challenging the auction notice. The Tribunal observed that the applicant had admitted the Original Application (OA) claim and showed willingness to settle by repaying dues, rendering the sale notice challenge devoid of merits.

What did the court decide?

The SARFAESI Application stands dismissed without costs; interim orders vacated and pending IAs closed.

Maruthi Plastics versus Canara Bank — Banking and Recovery | DRT (2023)

SA No. 106 of 2023

15.12.2023

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 15^th day of December, 2023

¶6

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

¶7

SARFAESI APPLICATION No. 106 of 2023

¶8

M/s Maruthi Plastics

¶9

Rep by its Proprietor Mr.S.Krishna Kumar 25 Harbour Colony 2^nd Street, Kodugaiyur Chennai – 600 118

¶10

Also at: Mr.S.Krishna Kumar No.16, Anbu Nagar, 2^nd Street Kodungaiyur Chennai – 600 118 ….Applicant

¶11

Vs.

¶12

The Authorized Officer, Canara Bank (Erstwhile Syndicate Bank) Perambur Branch No.68, Madhavaram High Road Perambur Branch Chennai – 600 011 ….Respondent

¶13

Counsels on record / appeared:

¶14

Counsel for Applicant : M/s. B.K.Girish Neelakantan Counsel for Respondent : M/s. Akshai Mani

¶15

ORDER

¶16

This SA is filed challenging the E-Auction Sale Notice dated 12.01.2023 issued

¶17

by respondent bank scheduling sale to 27.02.2023, for recovery of a sum of Rs.38,77,471.57p from applicant.

¶18

Heard Ld.Counsels appearing for both the parties.

SA No. 106 of 2023

15.12.2023

Ld.Counsel for applicants submitted that applicants intend to enter into a settlement with respondent bank by causing remittance of the overdue amounts and also submitted that applicants are ready and willing to submit to a decree in the accompanying OA bearing No.231/2020 on the file of this tribunal and further submitted that IA No.1402/2023 is filed in OA No.231/2020 praying for a decree duly admitting to the OA claim. Ld.Counsel for applicants submit that since applicant intend to close their loan account, the present SA may also be disposed along with OA, so as to enable applicants to discharge their debt in terms of their undertaking. Submitting so, Ld.Counsel prayed for appropriate orders.

¶23

Whereas Ld.Counsel for respondent bank submitted that respondent bank has followed all the procedures as warranted under law and that there are no infirmities in the procedure adopted by the respondent bank while issuing the impugned sale notice. Ld.Counsel supported by the liason officer submitted that respondent bank will be able to accept the decreetal dues from applicants herein if the accompanying OA No.231/2020 is duly considered and on the condition of applicants causing the remittance of the overdue amounts, respondent bank shall withdraw its SARFAESI actions against the mortgage property and will be able to make it a free hold property by executing necessary documents of discharge and release of mortgage in favour of applicant herein.

¶24

Submitting so, both Ld.counsels prayed for appropriate orders.

¶25

In the circumstances, as parties have admitted to the OA claim in OA No.231/2020 filed and pending between the same parties as of this SA, as the said OA

SA No. 106 of 2023

15.12.2023

is allowed for the OA claim to be repayable together with interest at the rate of 10% per annum simple, within two months from the date of the orders and in any case not later than 01.03.2024 and also in view of the fact that applicants could not raise any tenable infirmities in the procedure adopted by the respondent bank while prosecuting their SARFAESI actions, the present SA is devoid of merits and hence is liable to be dismissed.

¶30

Accordingly SA stands dismissed, however without costs. Interim order, if any granted and subsisting till this day stands vacated and all other IAs, if any pending stand closed.

¶31

With the above directions, this SA stands disposed.

¶32

A copy of the order be communicated to the parties concerned as per extant guidelines.

¶33

(Dictated to DD, transcribed by her, corrected, signed and pronounced by me in Open Court, on this the 15^th day of December, 2023)

¶34

Sd/-

¶35

(GANAPATHI K.R.K)

¶36

PRESIDING OFFICER

Maruthi Plastics v. Canara Bank

Case brief

What is this about?

What did the court decide?

Maruthi Plastics v. Canara Bank

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of India versus Arumugam

N Somasundaram versus Indian Bank

Bank of India versus M/S Unicon Engineerss Rep by It Proprietor Mr Sanjeevi Chakaravarthy R

Canara Bank versus M/S Sj Industries

South Indian Bank versus the Venkateswar Steel Traders

Mr R Sridhar versus Indian Bank