lAKSHMI VILAS BANK vs M s VMR and Sons on 15 September 2026

1. M/s. ASSET RECONSTRUCTION COMPANY (INDIA) LTD., 1G, 1st Floor, Century Plaza, No. 560-562, Anna Salai Teynampet, Chennai – 600 018 Represented by its Authorised Officer ….Petitioner / Proposed Applicant

2. DBS Bank India Ltd

Karanodai Branch

Door No.103-B, Sri Dhanalakshmi Complex

Bazaar Main Road (GNT)

Karanodai, Chennai – 600 067

….Respondent / Applicant

-Vs–

1. M/s V.M.R. & Sons

No.11, Avoor Rice Mill

Bankaramman Medu

Avoor Village, Medur Post

Ponneri Taluk – 601 204

Represented by its Proprietor

Mr. M. Ravindran

2. Mr. M. Ravindran

S/o Mr. K.V. Maragathavel No.11, Avoor Rice Mill

Bankaramman Medu

Avoor Village, Medur Post

Ponneri Taluk – 601 204

3. Mr. M. Mahendran

S/o Mr. K.V. Maragathevel

No.11, Avoor Rice Mill

Bankaramman Medu

Avoor Village, Medur Post

Ponneri Taluk – 601 204

……Respondents/Defendants

Counsels on record / appeared:

Counsel for Petitioner : M/s. A. Vinayagaperumal

: - ORDER ON MA NOs.223/26 to 225/26 - :

1. The Original Application is filed by The Lakshmi Vilas Bank Limited, against the Defendants, seeking main relief to order the respondents 1 to 3, who are 1st, 2nd and 3rd Defendants in the OA, to pay a sum of Rs.1,91,45,859.79p (Rupees One Crore Ninety One Lakhs Forty Five Thousand Eight Hundred Fifty Nine and Seven Nine Paise only) with further interest and costs.

2. The Petitioner has filed the present petitions i.e., MA No.223/26, 224/26 and 225/26 along with affidavit of Authorised Signatory – Sh. V. Ragothaman, to condone the delay of 1242 days in filing substitution petition, to reopen the OA and to substitute the name of M/s Asset Reconstruction Company Limited to be added as assignee applicant in place of DBS Bank India Limited to conduct the OA No.387 of 2019.

3. It is submitted that the OA No.387/2019 was initiated by the Lakshmi Vilas Bank Limited against the defendants for recovery of a sum of Rs.1,91,45,859.79p together with contractual interest and the said OA was allowed vide final order dated 17.03.2023 and DRC No.54 of 2023 came to be issued in terms of the final order. During the pendency of OA, the Lakshmi Vilas Bank was merged with DBS Bank India Limited and the said amendment was allowed vide order dated 07.09.2021. Subsequently, after the final order was passed, during the pendency of DRC, the applicant bank had assigned various loan accounts including the subject Loan of respondents 1 to 3, who are defendants / borrowers of credit facilities from the Lakshmi Vilas Bank Ltd. since merged with DBS Bank India Limited to M/s Asset Reconstruction Company (India) Limited by way of Assignment Agreement dated 23.12.2022 registered as Document No.104 of 2022 on the file of Sub Registrar, Karur.

4. It is further submitted that subsequent to assignment, due to administrative formalities, verification of records, internal approvals and procedural delays arising out of the assignment, the applicant bank could not file the substitution petition within time. Hence, there was a delay of 1242 days in filing the IA seeking to substitute them in the place of 1st respondent herein. The delay was only due to the aforesaid reasons, which is neither willful nor wanton.

5. It is further submitted by the petitioner that in the meanwhile, the respondents 1 to 3 had approached the applicant bank and offered to pay Rs.83 lakhs towards the One Time Settlement, which was accordingly considered and respondents 1 to 3 have paid the amount towards full and final settlement of the OA claim. Thus, the loan account is settled and mortgage is discharged.

6. Thus submitting, counsel prayed for condonation of delay in filing substitution petition, to reopen the OA and for substitution of proposed applicant in place of assignor, so as to record the settlement and take return of documents for handing it over to the respondents 1 to 3.

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

7. The applicant bank has filed the OA for recovery of a sum of Rs.1,91,45,859.79p along with interest and for sale of mortgaged properties. The OA was allowed vide final order dated 17.03.2023 and DRC No.54 of 2023 came to be issued in terms of the final order. During the pendency of the recovery proceedings, the applicant bank, DBS Bank India Limited (erstwhile Lakshmi Vilas Bank Limited) had assigned the debt along with underlying securities to M/s Asset Reconstruction Company (India) Limited, vide Assignment Agreement dated 23.12.2022 registered as Document No.104 of 2022 on the file of Sub Registrar, Karur

8. During the pendency of recovery proceedings in DRC, the parties have arrived at a negotiated settlement for a sum of Rs.83 lakhs towards full satisfaction of the OA claim, which payment was reported to have been received from the respondents 1 to 3 towards full satisfaction of OA claim. Consequent upon payment, the loan account is settled and mortgage also stands discharged.

9. In view of settlement reported by the parties and the necessity for the petitioner to get back the documents for handing it over to the respondents 1 to 3 and in view of the fact that M/s Asset Reconstruction Company (India) Limited being a financial institution is the custodian of the public money held under trust, the Tribunal relying on the judgment of 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- 441 feels it apt to condone the delay and to permit the assignee to continue the TA in place of assignor bank, as per the Assignment Agreement.

10. Accordingly, MAs 223/26, 224/26 and 225/26 stands allowed permitting substitution of M/s Asset Reconstruction Company (India) Limited in place of applicant.

Sd/-

(S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI

(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 15th day of September, 2026)