Debts Recovery Tribunals and Appellate Tribunals
STANDARD CHARTERED BANK vs MARG LIMITED on 23 June 2022
BEFORE THE DEBTS RECOVERY TRIBUNAL –II AT CHENNAI
Dated this 23rd day of June, 2022
PRESENT: SHRI T. RAJESH
PRESIDING OFFICER
OA No.305 of 2021
Standard Chartered Bank
Represented by its Authorised Officer
Mr. Srinivasan Viswanthan
Having its Branch Office at
No.19, Rajaji Salai, Parrys
Chennai – 600 001
…Applicant
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1. MARG Limited
Represented by its Managing Director
Mr. G.R.K. Reddy
Having Registered Office at
Sri Sai Subhodhaya Apartments
Basement No.57/2B, East Coast Road
Thiruvanmiyur, Chennai – 600 041
2. Mr. G.R.K. Reddy
Managing Director, MARG Limited
No.24, South Mada Street
Srinagar Colony, Saidapet
Chennai – 600 015
…Defendants
Counsel for the Applicant Bank : M/s Cyril Amarchand Mangaldas Counsel for Defendants : M/s S. Vignesh & R. Revanth Kumar
ORDER ON JOINT COMPROMISE MEMO
1. This application is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 against the defendants seeking issuance of a Recovery Certificate for a sum of Rs.107,52,58,225.53p with further interest at the rate of 16% per annum with monthly rests from 19.02.2021 till the date of realisation along with costs of the application and for sale of schedule properties.
2. In this case the defendants were set ex-parte as early as on 8.3.2022 and when the case was posted for filing ex-parte PA by the applicant, the defendants filed IA No.1010/2022 for setting aside the ex-parte order dated 8.3.2022 setting D1 ex-parte. When the case was taken up for hearing on 23.6.2022, the parties filed a Joint Compromise Memo in SR No.5118/2022 dated 20.6.2022 and in view of the same IA No.1010/2022 was allowed and the order setting aside the 1st defendant ex-parte was set aside.
3. When the case was at the stage of filing Proof Affidavit by the parties filed a Joint Compromise Memo under Dy. No.5118 of 2022 dated 20.06.2022 stating therein that after negotiations the applicant and the defendants agreed to accept Rs.55 crores as full and final settlement of all dues payable by the defendants inclusive of the OA claim of the applicant subject to terms and conditions. It is stated therein that the amount of Rs.55 crores is payable by the borrower in two tranches i.e., Rs.11,00,00,000/- prior to the filing of the Joint Memorandum of compromises and Rs.44,00,00,000/- within 75 days of payment of the initial settlement amount i.e., by August 27, 2022. It is also stated therein that the 1st defendant has paid to the applicant the initial settlement amount of Rs.11,00,00,000/- by way of four demand drafts dated 13.6.2022. It is further stated in the event of failure to comply with the repayment as agreed upon on or before 27.8.08.2022, the applicant will be entitled to approach this Tribunal for allowing of the OA as prayed for with interest and with costs of the OA after giving credit to the amounts paid by the defendants.
4. Heard the Ld. Counsels appearing on behalf of the contesting parties. Joint Compromise Memo filed by the applicant bank and 1st defendant is taken on record.
5. In the result, the OA is disposed of in terms of the Joint Compromise Memo dated 16.6.2022 referred ibid. The Joint Compromise Memo shall form part of this order.
6. Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993. (Dictated to PS, transcribed by him, corrected, signed and pronounced by me in Open Court, on this the 23rd day of June, 2022)
Sd/- (T. RAJESH) PRESIDING OFFICER DRT-II, CHENNAI