LAWS(MAD)-2017-12-184

ASSISTANT MANAGER, INDIAN OVERSEAS BANK, CHENNAI Vs. MANAGING DIRECTOR, M/S GLOBAL POWERTECH EQUIPMENT PVT LTD , CHENNAI AND OTHERS

Decided On December 08, 2017
Assistant Manager, Indian Overseas Bank, Chennai Appellant
V/S
Managing Director, M/S Global Powertech Equipment Pvt Ltd , Chennai And Others Respondents

JUDGEMENT

(1.) Being aggrieved by the order made in M.A.No.45 of 2017 in M.A.No.7 of 2017 in O.A.Sr.No.3131 of 2016, dated 28.06.2017, on the file of the Debts Recovery Tribunal-III, Chennai, dismissing M.A.No.45 of 2017, filed to restore M.A.No.7 of 2017, which was dismissed for default on 23.02.2017, the Assistant Manager, Indian Overseas Bank, Perungulathur Branch, Chennai-63, has filed the instant writ appeals.

(2.) Material on record discloses that M/s.Global Powertech Equipment Pvt. Ltd., Chennai, 1st respondent herein, has borrowed the term loan of Rs.25,45,00,000/-, Cash Credit Limit of Rs.4,25,00,000/-, Additional Term Loan of Rs.2.83 Crores and Letter of Credit Limit of Rs.2.44 Crores to the Indian Overseas Bank, Chennai, petitioner herein. M/s.Orient Green Power Company Ltd., Chennai, 2nd respondent herein, stood as a corporate guarantor. Respondents 3 to 5 have stood as personal guarantors. There was default in monthly instalments. Account was closed as NPA. As on 13.04.2016, a sum of Rs.24,07,12,521/- was due.

(3.) On 13.04.2016, the Indian Overseas Bank, Perungulathur Branch, Chennai-63, petitioner herein, has filed an application, under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (In short "RDBI Act"), in O.A.Sr.No.3131 of 2016, on the file of the Debt Recovery Tribunal-III, Chennai. O.A.Sr.No.3131 of 2016, was returned on 04.05.2016, by the Debt Recovery TribunalIII, Chennai, with the following defects,