VIJAYALAKSHMI GINNING FACTORY Vs. SYNDICATE BANK

JUDGEMENT

(1.) This petition has been filed by the petitioner, M/s.Vijayalakshmi Ginning Factory, Rajapalayam aggrieved over the order of Debts Recovery Appellate Tribunal, Chennai dated 30.09.2019, requiring to make a pre-deposit of Rs.17,00,00,000/- on or before 29.10.2019.

(2.) The Debts Recovery Appellate Tribunal in its impugned order had insisted on the pre-deposit of Rs.17,00,00,000/- (Rupees Seventeen Crores only). The appeal before Debts Recovery Appellate Tribunal was against the Debts Recovery Tribunal order of rejecting the application at the SR stage itself for impleading the writ petitioner as a party in all the proceedings pending before the Debts Recovery Tribunal including the OA.No.475 of 2015.

(3.) M/s.Vijai Spinners (RJPM) Private Limited, Rajapalayam, the second respondent in the present Writ Petition is the principal borrower who had availed many credit facilities from Syndicate Bank, Rajapalayam Branch during 2004 to 2014 for which the third, fourth and fifth respondents were guarantors and the third and fifth respondents were mortgagors too. Since repayments were not forthcoming, the loans sanctioned to the second respondent were classified as Non Performing Assets in 2015. Therefore, the Bank had filed OA.No.475 of 2015 on 15.04.2015 for recovery of a sum of Rs.35,22,29,100.13/- along with subsequent interest in Debts Recovery Tribunal, Madurai. There were also three Interlocutory Applications filed by the Bank in IA.Nos.1837 of 2015, 1838 of 2015 and 1839 of 2015 along with OA.No.475 of 2015 (i) to attach the property of the fifth respondent (ii) to pass an order of ad-interim injunction restraining the fifth respondent from alienating or encumbering the said property and (iii) to direct the concerned Sub Registrar to cause an entry of the order of attachment in the Register. An exparte order directing the fifth respondent to furnish security for Rs.36,00,00,000/- (Rupees Thirty Six Crores only) by 04.12.2015 and an order of ad-interim injunction restraining the fifth respondent from alienating or encumbering the property were passed by the Debts Recovery Tribunal. Apart from that, the concerned Sub-Registrar was also directed to cause entry in the Register.