AVANTHA HOLDINGS LIMITED Vs. ICICI BANK LIMITED

JUDGEMENT

(1.) The present writ petition has been filed under Article 227 of the Constitution of India, assailing the Order dtd. 16/12/2025 passed by the Debts Recovery Appellate Tribunal, Kolkata (holding Additional Charge of Debts Recovery Appellate Tribunal, Delhi) ["DRAT"] in Miscellaneous Appeal No.222 of 2024, rejecting its appeal. In the appeal, the petitioner had challenged the Order dtd. 3/7/2024 passed by the Debts Recovery Tribunal-III, Delhi ("DRT") dismissing the application filed by the petitioner seeking condonation of delay of 14 days in filing the written statement in Original Application No.7/2024 ("O.A.").

(2.) The essential facts are that respondent no.1/Bank granted a Letter of Credit facility of US$ 50 million to respondent no.2, which is a subsidiary of the petitioner. To secure this facility, the petitioner and respondent no.2 executed the necessary loan and security documents, and the facility was revised and renewed over time with fresh documents being signed. Respondent no.2 committed repeated defaults in making payments under the Letter of Credit, leading the Bank to issue several demand notices to the petitioner, respondent no.2 and respondent no.3. Later, on 11/7/2018, the Facility Agreement was modified at the request of respondent no.2, and respondent no.3 executed a guarantee on 13/7/2018 agreeing to repay respondent no.2's dues. As the outstanding amounts still remained unpaid, respondent no.1/Bank filed O.A. No. 7/2024 before DRT seeking recovery of Rs.558,60,99,519.70 from the defendants.

(3.) By Order dtd. 19/3/2024, the DRT directed issuance of summons to the defendants therein, requiring filing of their written statement including claim for set off or counter-claim, if any, within 30 days of service, failing which their right to file written statement and defence evidence would stand closed. The summons were given under the seal of DRT on 22/3/2024.