Dismissed

Oren Mud Chemicals Pulverising Pvt. Ltd. v. Icici Bank Limited

DRT9 Jan 2024SA/265/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal dismissed the applicant's SARFAESI application challenging a possession notice. The court held that no tenable infirmities existed in the bank's procedure, regardless of pending NCLT proceedings or the applicant's status as a corporate guarantor.

What did the court decide?

SA dismissed without costs; interim orders vacated; pending IAs closed.

Oren Mud Chemicals Pulverising Pvt. Ltd. versus Icici Bank… — Company and Corporate | DRT (2024)

SA No. 265 of 2023

09.01.2024

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 09^th day of January, 2024

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

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SARFAESI APPLICATION No. 265 of 2023

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Oren Mud Chemicals Pulverising Private Limited, Represented by its Director, Mr. Rizwan Ahmad, 28/2B, Saravana Street, T.Nagar, Chennai – 600 017.

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….Applicant

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Vs.

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ICICI Bank Limited, Rep by its Authorised Officer, 3^rd Floor, No.1, Cenotaph Road, Teynampet, Chennai – 600 018, Tamil Nadu ….Respondent

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Tarun Rao Kallakuru Counsel for Respondent : M/s. Nithyaesh & Vaibhav

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ORDER

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This SA is filed challenging the Possession Notice dated 20.03.2023 issued by

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respondent bank for recovery of a sum of Rs.29,01,24,451.48p.

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Heard the Ld.counsel appearing for both the parties.

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It is the case of applicant that they are a subsidiary to a principal company and

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also a corporate guarantor to the principal company which is under liquidation process before the NCLT bench, Chennai. Ld.counsel further submitted that consequent upon their application being allowed, CIRP has sold away the property

SA No. 265 of 2023

09.01.2024

for Rs.80 crores and is in the process of realizing the same, after which event even the claim of the respondent bank also might stand for consideration, either for reconciliation or for settlement. Ld.counsel for applicant has today filed written arguments after serving copies on the other side. It is contended on behalf of applicant that although there are no procedural infirmities while issuing the impugned possession notice, it is not open for the respondent bank to initiate SARFAESI action during the pendency of NCLT proceedings and since applicant herein is only a corporate guarantor, although a 99% subsidiary.

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Whereas Ld.counsel for respondent bank submits that it is a settled principle

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of law that SARFAESI action against corporate guarantor is maintainable despite the pendency of proceedings before NCLT by a secured creditor and that respondent bank has followed the procedure as warranted under the act and that there are no infirmities.

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In the circumstances, notwithstanding the contentions with regard to the pendency of NCLT proceedings, as applicant could not make out any tenable infirmities in the procedure adopted by the respondent bank while issuing the impugned possession notice dated 20.03.2023, there are no merits in the present SA and therefore the same is liable to be dismissed.

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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.

SA No. 265 of 2023

09.01.2024

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

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guidelines.

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(Dictated to Stenographer(DD), transcribed by her, corrected, signed and pronounced by me in Open Court, on this the 09^th day of January, 2024)

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Sd/-

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(GANAPATHI K.R.K) PRESIDING OFFICER

Oren Mud Chemicals Pulverising Pvt. Ltd. v. Icici Bank Limited

Case brief

What is this about?

What did the court decide?

Oren Mud Chemicals Pulverising Pvt. Ltd. v. Icici Bank Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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