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IN THE HIGH COURT OF JUDICATURE AT MADRAS
MANINDRA MOHAN SHRIVASTAVA, CJ, G.ARUL MURUGAN
Eta Engineering Private Limited – Appellant
Versus
Jammu and Kashmir Bank Limited, Parrys Branch, Rep. By Its Senior Executive And Power Of Attorney Holder – Respondent
| Table of Content |
|---|
| 1. timeline of financial interactions between petitioner and bank (Para 1 , 2) |
ORDER :
MANINDRA MOHAN SHRIVASTAVA, CJ.
The petitioner has filed this revision petition under Article 227 of the Constitution of India embittered by the order dated 8.2.2021 passed by the Debt Recovery Appellate Tribunal, Chennai [DRAT].
2. The nub of the revision petition runs thus:
2.1. The petitioner company, which is engaged in the execution of various Heating Ventilation and Air Conditioning (HVAC) Engineering, Procurement and Construction (EPC) contracts for private parties as well as many public projects, approached the respondent bank seeking financial assistance and the same was granted over a period of time from 2003 to 2016.
2.2. It is stated and alleged that, during the period from April2016 to July, 2016, as the cash credit facility exceeded the limit, the respondent stopped the facilities in contravention of the Reserve Bank of India Directions on Revitalisation of Distressed Financial Assets. It is added that the abrupt stoppage of non-fund based facilities had serious financial implications and resulted in devolvement of Bank Guarantees/Letters of Credit to the tune of approxima
The court emphasized the necessity for the Debt Recovery Appellate Tribunal to address critical issues regarding wrongful classification of a borrower's account as NPA and the invocation of bank guar....
Banks are under a statutory obligation to comply with the RBI's Resolution Framework (R.F) 2.0 and consider applications for restructuring of MSME loans in accordance with its provisions.
Where there is a breach of contract, the party complaining of such breach may required to file a suit for specific performance of the contract, if contract is capable of being specifically performed.
Right of redemption under SARFAESI Act extinguishes on publication of auction notice; DRT cannot thereafter set aside auction and permit effective redemption, rendering such order without jurisdictio....
Alternative remedy is not an absolute bar on maintainability of a writ petition under Article 226 of Constitution of India, where DRT has exceeded in exercising its jurisdiction.
The jurisdiction of the civil court is excluded in matters related to the classification of loan accounts as NPA under the SARFAESI Act.
A deemed lender under the SARFAESI Act can invoke rights without reissuing a demand notice if the previous lender had done so, even after settlement.
The statutory scheme of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Act, 2002) does not provide for a legal remedy until the Section 13(4....
The court established that the right of redemption under the SARFAESI Act is extinguished upon the issuance of a sale certificate, and timely challenge to bank actions is essential.
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