S. Ravindra Bhat, J.

CAV. 398/2014

Learned counsel for the caveator has put in appearance. Cav. 398/2014 accordingly stands discharged.

C.M. NO. 5795/2014

Allowed, subject to all just exceptions.

W.P.(C) 2789/2014, C.M. NO. 5794/2014 (for stay)

1. This proceeding under Article 226 of the Constitution of India questions an order of the Debts Recovery Appellate Tribunal (DRAT) dated 21.03.2014 in Appeal No.443/2010. The impugned order rejected the petitioners’ appeal against an order of the Debts Recovery Tribunal (DRT).

2. The first respondent (hereafter referred to as “the bank”) had advanced amounts towards working capital (Rs. 3.75 crores) and term loan facility of Rs. 95 lakhs tothe second respondent (hereafter referred to as “the borrowers”). The third and fourth respondents were guarantors to these loan facilities. On 30.06.2008, the loan became a Non-Performing Asset (NPA) and the bank initiated proceedings under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDBFI), through OA No. 44/2008. It was alleged that a sum of Rs. 33.39 lakhs was outstanding as against the term loan advanced and Rs. 99.57 lakhs was due and payable in respect of the ca