Allowed

Canara Bank v. Lite Overseas

DRT19 Sept 2025MA/254/2025

Case brief

AI extract

What is this about?

The court considered an application for condonation of a 1006-day delay in re-presenting an Original Application for debt recovery. Relying on a High Court judgment regarding financial institutions as trustees of public money, the court condoned the delay subject to compliance conditions.

What did the court decide?

The application for condonation of delay is allowed subject to payment of Rs.2,000/- as costs to the Tamil Nadu State Legal Services Authority and filing a compliance report.

Canara Bank versus Lite Overseas — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 19^th day of September 2025

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PRESENT: SMT. S.V. GOWRAMMA Presiding Officer

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M.A. No.254 of 2025 in OA Dy. No.629/2020

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Canara Bank, Rep. by its Chief Manager Kellys Branch 207, Purasawalkam High Road Chennai – 600 007. ...Applicant

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-Vs-

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M/s. Lite Overseas Rep. by its Proprietor Mr. F. Basha Khan No. 3, Patnool Sardar Jung Street Periamet, Chennai – 600 003.

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Also at

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M/s. Lite Overseas 31/14, 1^st Floor, Karpura Street Periamet, Chennai – 600 003.

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Mr. F. Bash Khan, S/o Fazullah Kahan 37/2, V.S. Residency, F3 Block State Bank Colony, 1^st Street Perambur High Road Jamalia, Chennai – 600 012.

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Also at

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Mr. F. Bash Khan, S/o Fazullah Kahan No. 20D, Angalamman Koil Strret Choolai, Chennai – 600 012. ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. S. Pandurangan

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ORDER IN MA No. 254/2025

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MA No. 254 of 2025 is taken up. This is an application filed by applicant bank for condonation of delay of 1006 days in re-presenting the OA.

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Perused the Affidavit filed on behalf of the Applicant bank.

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It is submitted by applicant bank that the present OA was filed for recovery of sum of Rs.1,17,12,610.24p together with interest and costs. The Registry was returned the above OA on 10.03.2021. However, due to the non-cooperative attitude and deficiency in rendering assistance to the bank by the earlier Advocate, applicant bank was kept in dark about the returns. Also due to delay in tracing and retrieving the file relating to the above OA from the earlier counsel, OA could not be re-presented within the time granted by this Tribunal, which is neither wilful nor wanton, but only due to aforesaid reasons. Therefore, the applicant bank prayed for condonation of delay of 1006 days in representing the OA.

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Perused the Affidavit filed on behalf of the Applicant bank and the records of the case.

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As OA is filed for recovery of money due from borrower and in view of the fact that the bank being a financial institution is the custodian of the public money held under trust, the Tribunal relying on the judgment of Hon’ble High Court of Madras (At Madurai) in the judgment of V.P. Rajula -Vs.- K.J. Sakadeva Raja reported in LAWS (MAD)-

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2020-8-441 feels it apt to condone the delay and give opportunity to applicant to prosecute their case.

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Accordingly, MA No.254/25 stands allowed and delay is condoned, subject to payment of cost of Rs.2,000/- to the Tamil Nadu State Legal Services Authority on or before 06.10.2025 by the applicant and to file the compliance report before the Registry.

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In case of the applicant complying with the order and filing compliance memo, Registry is directed to number the OA, if otherwise found to be in order. It is clarified that in case if the applicant bank fails to comply with the conditional order above, MA stand dismissed automatically without there being any need to pass separate order.

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Sd/-

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(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Deepika), transcribed by her, corrected, signed and pronounced by me in Open Court, on this the 19^th day of September, 2025)

Canara Bank v. Lite Overseas

Case brief

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Canara Bank v. Lite Overseas

Case brief

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