Debts Recovery Tribunals and Appellate Tribunals
STATE BANK OF INDIA vs Kimchi Corner on 1 February 2024
IN THE DEBTS RECOVERY TRIBUNAL – III, CHENNAI
Dated this the 01st day of February, 2024
Present: Shri Ganapathi K.R.K.
Presiding Officer
MA No.16/24 in OASR No.1796/2022
(Edrt -Dy. No.1881/2021)
State Bank of India
Nolambur Branch
HIG-I, Phase – 1, Plot No.65
4th Main Road, Mogappair West
Ambattur Industrial Estate
Chennai – 600 037
Migrated to
State Bank of India
Rep. by its Chief Manager
SME Centre, Ambattur
86 A & B, II Main Road, Ambattur Industrial Estate Chennai – 600 058
....Petitioner
-Vs-
1.
M/s Kimichi Corner
Rep. by its Proprietor Sindhuja K
169, 8th Main Road, Nolambur, Mogappair West Chennai – 600 037
2.
Sindhuja K
169, 8th Main Road
Nolambur, Mogappair West
Chennai – 600 037
….Respondents
Counsel for Petitioner bank :
M/s P.H. Vinodh Pandian
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O R D E R
1. This MA is filed by the Petitioner / Applicant Bank for condonation of delay of 215 days in re-presenting the Original Application after complying with the office objections.
2. It is the case of the petitioner / applicant bank that the objections were duly contemplated to be complied upon, however due to administrative reasons, applicant bank could not comply with the same within the time granted by this Tribunal, which was neither willful nor wanton. Hence, there was delay in processing the returns and the OA was re-presented with a delay of 215 days and petitioner bank prayed for condonation of the same.
3. On perusal of records, it is seen that this is an OA filed for recovery of a total sum of Rs.31,48,292/- due in respect of Term Loan facility together with future interest at the rate of 11.55% p.a. with monthly rests from defendants. It is not explained anywhere in the petition as to how applicant bank will be entitled to claim interest at the contractual rate for the period of delay, which is owing to their inaction and not attributable to any action of the defendants. As the period of delay is on the high side, condonation of the same by levying formal amount in the form of costs payable either to the Library Fund or to any Charity organization as a measure of reprimand would not be justifiable when compared with the levy of interest burden on the defendants for the period of default on the part of the applicant bank for no fault of the borrower.
4. However, in the circumstances, this MA is allowed on the condition that the subject of levy of interest for the defaulted period (215 days), which is condoned at this stage of the OA proceedings, shall stand for consideration at the time of issuance of Recovery Certificate by the progress of the case and the conduct of the case on behalf of the applicant bank till the stage of issuance of the recovery certificate. Registry is directed to put up a note accordingly for consideration of claim of interest for this default period at the time of drawing of the Recovery Certificate in case for an order thereto by the Tribunal.
5. Registry is directed to number the OA, if otherwise found to be in order. (Dictated to PS, transcribed by her, corrected, corrected, signed and processed through E-drt on this the 01st day of February, 2024)
Sd/-
(GANAPATHI K.R.K) PRESIDING OFFICER