Partly allowed

Dbs Bank Limited v. M/S L J C Builders And Promoters

DRT29 Jan 2026TA/1564/2023

Case brief

AI extract

What is this about?

Proposed an amendment allowing the assignee, Asset Reconstruction Company (India) Limited, to substitute the original applicant bank in a debt recovery case by condoning a significant delay in filing the substitution petition.

What did the court decide?

Allowed the Internal Amendment to condone the delay, subject to payment of costs to the TN State Legal Services Authority and filing a compliance report within thirty days.

Dbs Bank Limited versus M/S L J C Builders And Promoters — Banking and Recovery | DRT (2026)

IAs in TA 1564/23

29.01.2026

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 29^th day of January, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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I.A. Nos.2402/25 and 2403/25

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T.A. No.1564 of 2023

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ASSET RECONSTRUCTION COMPANY (INDIA) LIMITED' Branch Office at No. 560-562, lG, 1^st F1oor Century Plaza, Anna Salai, Thiruvika Kudiyiruppu, Tevnampet, Chennai - 600 018, Rep. by its Authorised Officer ….Petitioner/ Proposed Applicant

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DBS BANK INDIA LIMITED (Erstwhile Lakshmi Vilas Bank Limited) Chennai Regional Office Plot No. 136, P.M. Towers 2nd Floor, Greams Road, Chennai 600 006. ….Applicant

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-Vs-

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Mr.O.JACOB Proprietor M/s. LIC Builders & Promoters 7/10 2^nd Floor, Elangoadigal Street' Padmanaba Nagar, Choolaimedu, Chennai

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Mrs.SHAKILA JACOB W/o. Mr. Jacob OnnoonY, Plot No. 1 lndira Avenue, 4th Main Road, Kolathur, Chennai 600 099.

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Mrs.BABY ONNOONY W/o Mr. OnnoonY Plot No. 1, lndira Avenue, 4th Main Road, Kolathur, Chennai 600 099

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Mr.JIJI EUGENE D/ o. Mr. Onnoony, Plot No.5, Indira Avenue, 4th Main Road, Kolathur, Chennai 600 O99

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... Respondents 1 to 4/ Defendants 1 to 4

IAs in TA 1564/23

29.01.2026

Counsels on record / appeared:

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Counsel for Petitioner : M/s. L. Surya Associates

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: - ORDER ON IA NOs.2402/25 and 2403/25- :

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The Original Application is filed by the DBS Bank India Limited, against the Defendants, seeking main relief to order the Respondents 1 to 4, who are Defendant Nos.1 to 4 to pay jointly and severally a sum of Rs.1,85,64,299.31p (Rupees One Crore Eighty Five Lakhs sixty Four Thousand Two Hundred and Ninety Nine and Thirty One Paise only)

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with further interest and costs.

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The proposed applicant has filed the present petitions i.e., IA Nos.2402/2025 & 2403/2025 along with affidavit of Chief Manager – Sh. V. Ragothaman, seeking to condone delay of 970 days in filing substitution petition and to permit proposed applicant herein to be added as Assignee Applicant in place of applicant bank viz., The DBS Bank India Limited to conduct the TA No.1564/2023.

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It is submitted that the OA No.721/2019 (before DRT-II) was initiated by erstwhile The Lakshmi Vilas Bank Limited i.e., original applicant bank (since merged with The DBS Bank India Limited) which was subsequently transferred to this Tribunal and renumbered as TA No.1564/2023. During the pendency of OA, the applicant bank has assigned the debts to M/s Asset Reconstruction Company (India) Limited vide Assignment Agreement dated 23.12.2022.

IAs in TA 1564/23

29.01.2026

It is further submitted that after assignment, the 1^st respondent took more than two months to segregate the said loan account details and complete other official formalities as per their norms. After finishing their formalities, the 1^st respondent took considerable time to hand over the said loan account details, Assignment Agreement and previous counsel details to the petitioner / proposed application. Hence the substitution petition along with Assignment Agreement could not be filed within 30 days time frame from the date of Assignment Agreement. Hence IA No.2402/25 is filed to condone delay of 970 days in filing substitution petition and the delay caused is neither willful nor wanton but only due to aforesaid reason.

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It is therefore submitted that applicant company in the capacity of being an Assignee of M/s DBS Bank India Limited in respect of loan account of respondents 1 to 4, may be permitted to be added as a party in the above TA No.1564/2023.

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Heard the counsel for petitioner and perused the records of the case .

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The applicant, being a financial institution has filed the OA for recovery of a sum of Rs.1,85,64,299.31p along with interest and for sale of mortgaged properties. OA was filed before DRT-II, Chennai and assigned OA No.721/2019. Subsequently, due to bifurcation of jurisdiction, OA was transferred to this Tribunal and re-numbered as TA No.1564 of 2023. During the pendency of OA, the DBS Bank India Limited / applicant bank had assigned the debt along with underlying securities to the assignee M/s Asset

IAs in TA 1564/23

29.01.2026

Reconstruction Company (India) Limited vide Assignment Agreement dated 23.12.2022, which is registered as Doc. No. 104 of 2022 before the Sub Registrar, Melakarur. The said Assignment Agreement has been executed in terms of Section 5 (1)(b) of SARFAESI Act, 2002

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In view of the fact that the M/s Asset Reconstruction Company (India) Limited being a financial institution is the custodian of the public money held under trust, the Tribunal feels it apt to allow the IA and permit the assignee to continue the TA in place of assignor bank, as per the Assignment Agreement.

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Accordingly, IA No.2402/25 stands allowed condoning the delay of 848 days in filing substitution petition, subject to payment of cost of Rs.2,000/- to the Tamil Nadu State Legal Services Authority on or before 24.03.2026 by the applicant and to file the compliance report before the Registry. In case of the applicant complying with the order and filing compliance memo, IA No.2403/25 for substitution also stands allowed. It is clarified that in case if the applicant fails to comply with the conditional order above, IAs stand dismissed automatically without there being any need to pass separate order. List the matter on 24.03.2025 for further proceedings.

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

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 29^th day of January, 2026)

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IAs in TA 1564/23 5 29.01.2026

Dbs Bank Limited v. M/S L J C Builders And Promoters

Case brief

What is this about?

What did the court decide?

Dbs Bank Limited v. M/S L J C Builders And Promoters

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

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