The Debts Recovery Tribunal dismissed the appeal, holding it devoid of merit. The appeal against the sale and the challenge to the NPA classification were rejected, noting the sale had become absolute.
The Special Appeal and pending IAs were dismissed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
Court of the Presiding Officer Debts Recovery Tribunal, Jaipur
Item No. 67
Case No.SA/83/2022
M S STONEAGE RESOURCES 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
1 issue framed by the court
Whether the applicant had any merit in challenging the classification of their account as NPA.
M S STONEAGE RESOURCES
KARNATAKA BANK LIMITED
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
