Back
IN THE HIGH COURT OF JUDICATURE AT MADRAS
SENTHILKUMAR RAMAMOORTHY
State Bank of India – Appellant
Versus
NPT Offset Press Private Limited – Respondent
| Table of Content |
|---|
| 1. loan default and recovery proceedings initiated. (Para 1 , 2) |
| 2. arguments for plaint rejection presented. (Para 4 , 5) |
| 3. analysis of plaint's cause of action and legal validity. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14) |
| 4. application for rejection of plaint dismissed. (Para 15) |
ORDER :
Senthilkumar Ramamoorthy, J.
The plaintiff had availed of credit facilities from the defendant bank. It is common ground between the parties that the account became a Non-Performing Asset (NPA) on 31.12.2008. The defendant instituted proceedings before the Debts Recovery Tribunal – I, Chennai (DRT- I) under the Recovery of Debts and Bankruptcy Act, 1993 (the RDB Act) on 23.01.2015 for recovery of a sum of Rs.21.76 crores as on 21.01.2015 with further interest from the date of the original application. The said original application was heard and an order dated 30.07.2018 was issued holding that a sum of Rs.9,63,29,570/- was due and payable as on 30.07.2018 and directing that interest be applied on the said sum. The defendant herein was directed to file a fresh statement of account by applying interest at 11% per annum from the date of filing of the original application till the dat
The court held that claims regarding compliance with OTS schemes do not bar a legal suit and that the plaint disclosed a valid cause of action warranting adjudication under the RDB Act.
The acceptance of late payments under a One Time Settlement can imply a waiver of strict compliance with payment timelines, and interest clauses remain enforceable.
(1) Recovery of loan amount – There is no provision in RDB Act by which remedy of a civil suit by a defendant in a claim by bank is ousted, but it is matter of choice of that defendant.(2) There is n....
The jurisdiction of the civil court is excluded in matters related to the classification of loan accounts as NPA under the SARFAESI Act.
Borrowers have the option to file a separate civil suit or make a counter-claim in DRT proceedings, and there is no statutory bar for the borrower to initiate a separate suit despite the bank initiat....
A creditor's obligation to consider an OTS application is contingent on the borrower's compliance with eligibility criteria, including upfront payment requirements.
The court emphasized the importance of compliance with consent terms, the right of the bank to recover outstanding dues, and the availability of statutory remedy under Section 30 of the RDB Act.
![Bhanu Moulds and Dies [P] Ltd. VS Principal Secretary/Chairman and Managing Director, State Industries Promotion Corporation of Tamil Nadu Limited - 2021 Supreme(Mad) 3614](https://supremetoday-s3.b-cdn.net/Madras_1.png)
The main legal point established in the judgment is the application of the principles of novation, discharge of liability, and reasonable compensation for delay in payment under the Indian Contract A....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
