Allowed

Stressed Assets Stabilization Fund v. S and S Industries and Enterprises Ltd.

DRT7 Nov 2025MA/359/2025

Case brief

AI extract

What is this about?

Petitioner, an asset reconstruction company assigned deb t and security, approached DRT for substitution and condonation of a 295-day delay. The Court relied on a High Court judgment to condone delay and permit continuation of proceedings.

What did the court decide?

MAs allowed; petitioner to pay costs of Rs.2,000/- to TN State Legal Services Authority by 02.12.2025; registration directed to issue amended DRC upon compliance.

Stressed Assets Stabilization Fund versus S and S Industries… — Banking and Recovery | DRT (2025)

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MAs 358/25 & 359/25 in TA No.2050/23

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07.11.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 07^th day of November, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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M.A. Nos.358/25 and 359/25

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T.A. No.2050 of 2023

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M/s Omkara Asset Reconstruction Pvt. Ltd., Omkara PS 13/2025 – 25 No.9, MP Nagar First Street Kongu Nagar Extension Tirupur – 641 607

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….Petitioner / Proposed Applicant

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Industrial Development Bank of India

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(Now IDBI Bank Limited)

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IDBI Tower, Cuffe Parade

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Mumbai – 400 005

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Stressed Assets Stabilization Fund (SASF)

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5^th Floor, IDBI Tower

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WTC Complex, Cuffe Parade

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Mumbai – 400 005

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(Amended as per order dated 31.07.2017 in IA No.224 of 2014)

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-Vs-

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M/s S & S Industries & Enterprises Limited

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Aarti Chambers, II Floor,

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189, Anna Salai

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Chennai – 600 006

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And at

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A-3, First Main Road, Industrial Estate Ambattur, Chennai – 600 058

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ICICI Bank Limited

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Bandra – Kurla Complex, Bandra (East) Mumbai – 400 051

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MAs 358/25 & 359/25 in TA No.2050/23

07.11.2025

Branch Office at

No.1, Cenetoph Road, Teynampet Chennai – 600 018

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State Bank of India

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Commercial Branch, 232, NSC Bose Road Chennai – 600 001

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Indian Bank

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Purasawalakam Branch

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Chennai – 600 113

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The Vysya Bank Limited 185, Mount Road

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Chennai – 600 006

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Oriental Bank of Commerce Spencer Plaza, 767, Anna Salai

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Chennai – 600 002 ….Respondents /Defendants

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Counsels on record / appeared:

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Counsel for Petitioner : M/s. Ramalingam & Associates

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: - ORDER ON MA NOs.358/25 and 359/25- :

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The Original Application is filed by the IDBI Bank Limited, subsequently was taken over by Stressed Assets Stabilization Fund, against the Defendants, seeking main relief to order the 1^st Respondent, who is 1^st Defendant in the OA, to pay a sum of Rs.27,88,60,851/- (Rupees

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Twenty Seven Crores Eighty Eight Lakhs Sixty Thousand Eight Hundred and Fifty One only) with further interest and costs.

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The Petitioner has filed the present petitions i.e., MA No.358/25, 359/25 along with affidavit of Authorised Signatory – Sh. Ritesh Sawant, to condone the delay of 295 days in filing substitution petition and to permit proposed applicant herein to be added as Assignee Applicant in place of

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MAs 358/25 & 359/25 in TA No.2050/23

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07.11.2025

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applicant institution to conduct the TA No.2050/2023. The respondents 2 to 6 are pari-pasu charge holders of the OA schedule mentioned property.

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It is submitted that the OA No.265/2007 (before DRT-II) initiated by The IDBI Bank Limited viz., the original applicant bank was allowed vide final order dated 13.08.2018 and DRC No.100 of 2019 came to be issued in terms of the final order. Subsequently the OA was transferred to this Tribunal and renumbered as TA No.2050/2023. During the pendency of recovery proceedings, the applicant bank had assigned various loan accounts including the subject Loan of 1^st respondent, who is defendant / borrowers of credit facilities from Erstwhile IDBI Bank Limited, since assigned to Stressed Assets Stabilization Fund, by way of an Assignment Agreement dated 31.08.2024.

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It is further submitted that subsequent to assignment, the petitioner is taking steps to trace out the litigations against the 3^rd respondent by the Assignor for recovery of the due amount. On their due diligence, the above OA proceedings and Recovery Certificate pending proceedings have come to the knowledge of the petitioner. Thereafter, the petitioner had engaged the present counsel for filing substitution petition. On further follow up it is found that the above Original Application was transferred due to bifurcation of jurisdiction. As the above matter was disposed off in the year 2018, the petitioner struggled to locate the current status, Tribunal in which

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the subject RC has been transferred as pending. After much follow up, it is found that the above OA and RC has been transferred to this Tribunal and

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MAs 358/25 & 359/25 in TA No.2050/23

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07.11.2025

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renumbered as TA No.2050 of 2007. In the above said process of tracing out the transfer details of the above OA, there was a delay of 295 days in filing the IA seeking to substitute them in the place of 1^st and 2^nd respondents herein. The delay was only due to the aforesaid reasons, which is neither willful nor wanton but only due to the aforesaid reasons. Thus submitting, counsel prayed for condonation of delay in filing substitution petition and for substitution of proposed applicant in place of assignor bank.

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Heard the counsel for petitioner and perused the records of

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the case .

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The applicant, being a financial institution has filed the OA for recovery of a sum of Rs.27,88,60,851/- along with interest and for sale of mortgaged properties. OA was filed before DRT-II, Chennai and assigned OA No.265/2007. Subsequently, due to bifurcation of jurisdiction, OA was transferred to this Tribunal and re-numbered as TA No.2050 of 2023. During the pendency of the OA, the applicant bank, the IDBI Bank had assigned the debt along with underlying securities to Stressed Assets Stabilization Fund (SASF), who in turn had assigned the debt to the present assignee M/s Omkara Asset Reconstruction Company Pvt. Limited vide Assignment Agreement dated 31.08.2024.

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In view of the fact that the M/s Omkara Asset Reconstruction Company Pvt. Limited being a financial institution is the custodian of the public money held under trust, the Tribunal relying on the judgment of

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Hon’ble High Court of Madras (At Madurai) in the judgment of V.P. Rajula -Vs.- K.J. Sakadeva Raja reported in LAWS (MAD)-2020-8-

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MAs 358/25 & 359/25 in TA No.2050/23

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07.11.2025

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441 feels it apt to condone the delay and give last opportunity to applicant to permit the assignee to continue the TA in place of assignor bank, as per the Assignment Agreement.

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Accordingly, MAs 358/25 and 259/25 stands allowed subject to payment of costs of Rs.2,000/- to the Tamil Nadu State Legal Services Authority on or before 02.12.2025 by the applicant and to file the compliance report before the Registry.

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It is clarified that in case if the applicant bank fails to comply with the conditional order above, MAs stand dismissed automatically without there being any need to pass separate order. Applicant to carry out amendment and file amended copy of TA, after sending copy of the amended TA to the defendants and file proof thereof. Thereafter, Registry is directed to issue amended DRC substituting the petitioner viz., M/s Omkara Asset Reconstruction Company Pvt. Limited.

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Sd/-

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(S.V. GOWRAMMA)

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PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 07^th day of November, 2025)

Stressed Assets Stabilization Fund v. S and S Industries and Enterprises Ltd.

Case brief

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Stressed Assets Stabilization Fund v. S and S Industries and Enterprises Ltd.

Case brief

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