Judgment :-

G.S. Singhvi, J.

1. Leave granted.

2. These appeals filed for setting aside order dated 23.10.2009 passed by the Division Bench of Madras High Court are illustrative of how a defaulting borrower can use the court process for frustrating the action initiated by a bank under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short `the Act') for recovery of its dues.

3. The appellant-Bank sanctioned loan to M/s. N.S. Investments, a partnership firm in 1989 and again in 1991. After some time, the account of M/s. N.S. Investments was declared as non-performing asset. In 1995, respondent No.1 M/s. Blue Jaggers Estate Ltd. took over the assets and liabilities of M/s. N.S. Investments. The respondents claim that this was done at the asking of the appellant who agreed to provide additional financial assistance to the tune of Rs.1 crore, but no tangible evidence has been produced in support of this assertion.

4. Since the respondents failed to clear the outstanding dues, the appellant filed an application under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (for short, `the DRT Act')