ICICI BANK LIMITED Vs. DENA BANK

JUDGEMENT

(1.) Respondent Nos. 2 and 3 are Insutech India Limited and one Devendra Tibrewala. The petitioner has challenged an order dated 25.2.2005 passed by the Debt Recovery Appellate Tribunal (DRAT) dismissing Appeal No. 180 of 2003 filed by it against an order dated 11.7.2003 passed by the Debt Recovery Tribunal (DRT) allowing O.A. No. 344 of 2000 filed by respondent No. 1 ordering the petitioner and respondent No. 2 to pay a sum of Rs. 30,48,550/- with further interest at the rate of 18% p.a. on the sum of Rs. 28,00,000/- from the date of filing of the application till payment. Sangli Bank Limited by a scheme of amalgamation sanctioned by an order of the Reserve Bank of India dated 18.4.2007 in exercise of powers under section 44A(4) of the Banking Regulation Act, 1949 amalgamated with the petitioner. Respondent No. 1 had filed a suit on 19.9.1996 in this Court against the Sangli Bank Limited and respondent Nos. 2 and 3 for recovery of the said sum, which stood transferred to the DRT.

(2.) In September, 1995, respondent No. 2 availed of an overdraft facility from the petitioner. On 22.9.1995, respondent No. 2 signed and executed a demand promissory note, a letter of continuity, a letter of lien and set off and a letter of pledge. On 27.9.1995, respondent No. 3 executed a personal guarantee.

(3.) On 17.3.1996, respondent No. 2 issued in favour of the petitioner a cheque in the sum of Rs. 28,00,000/- towards the repayment of the amounts due under the said facility. The chqeue was drawn on respondent No. 1. The petitioner presented the cheque to respondent No. 1 through the clearing house of the Reserve Bank of India. The Sasoon Dock Branch of respondent No. 1 received the cheque on 18.3.1996 as 17.3.1996 being a Sunday, was a holiday.