This appeal by an MSME against a DRT order rejecting a stay on property sale was dismissed. It was held devoid of merit as the sale became absolute with no grant of stay.
Stay on auction sale rejected; sale became absolute.
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Court of the Presiding Officer Debts Recovery Tribunal, Jaipur
Item No. 68
Case No.SA/82/2022
M S RAMA ARTS AND EXPORTS Vs KARNATAKA BANK LIMITED
Date: 01.11.2025.
Proceedings through hybrid mode Present:
Shri Himanshu Agarwal, Counsel for the Applicant
Shri Vikram Dagur, Counsel for the Respondent Bank/FI
Heard the arguments.
The basic grievance of the applicant is that their account could not have been declared as NPA as the orders of Hon’ble Supreme Court were in operation and the bank has ante-dated the NPA date which cannot be done. He further submits that they are the MSME and the relief ordered by Hon’ble Supreme Court and RBI for emergency credit line was also not granted.
In this matter, already the property was sold and no stay was granted. Appeal against the order of DRT was also dismissed. The sale becomes absolute. The auction purchaser has not been made party, therefore the auction cannot be put to test. So far as the balance amount is concerned, the applicant can approach the bank for concession making their grievance.
Counsel for the bank submits that they have rightly classified the account as NPA. There was the first default in December 2019 and not a single penny has been deposited. The banks are dealing with the public money and they are bound to the pay them interest for their deposits, so they cannot be kept waiting for repayment of their dues.
In view of the above, this SA being devoid of any merit is liable to be dismissed. Accordingly, SA stands disposed of as dismissed, all pending IAs also stands disposed off, if any. File be consigned to record as per rules. Copy of order be uploaded on website.
(Vimal Gupta) Presiding Officer Debts Recovery Tribunal, Jaipur
2 issues framed by the court
Whether the applicant's NPA classification was improper due to Supreme Court orders.
Whether the NPA date was ante-dated improperly.
M S RAMA ARTS AND EXPORTS
KARNATAKA BANK LIMITED
Vimal Gupta
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
