Case Note & Summary
The writ petition was filed by Everest Fincap Pvt. Ltd. challenging an order of the Debt Recovery Appellate Tribunal (DRAT) dated 22 August 2008, which arose from an order of the Debt Recovery Tribunal (DRT) dated 29 November 2005. The dispute concerned the immovable property of Bradbury Mills Ltd., a company in liquidation, situated at 51, Maulana Azad Road, Mumbai. The company had availed loans from United Commercial Bank (UCO Bank) and Bank of India (BOI), secured by guarantees from the Ruia and Karnani groups. In 1978 and 1994, the banks filed suits for recovery of outstanding amounts. A Court Receiver was appointed in 1978 and took possession of the assets. The company was wound up in 1983 and the Official Liquidator was appointed. In 1994, the Karnani group proposed a revival scheme and deposited Rs. 2 crore, but failed to pay the balance, leading to dismissal of the revival application in 1996. Upon enactment of the Recovery of Debts Due to the Banks and Financial Institutions Act, 1993, the suits were transferred to the DRT. In 2001, the banks settled with the Ruia group, discharging them as guarantors. The Karnani group, represented by Ashok Kumar Karnani, entered into a memorandum of understanding with the petitioner for settlement. Various one-time settlement proposals were made, and in 2005 the banks agreed to accept Rs. 22 crore (UCO) and Rs. 5 crore (BOI) if paid by 31 March 2005. On 31 March 2005, UCO Bank filed an application before the DRT. The DRT passed an order on 29 November 2005, which was challenged before the DRAT. The DRAT passed the impugned order on 22 August 2008. The petitioner then filed the present writ petition under Article 226 of the Constitution. The legal issues, arguments of the parties, and the court’s analysis and decision are not available in the provided excerpt.
Issue of Consideration
Whether the Debt Recovery Appellate Tribunal erred in passing the order dated 22 August 2008 in Misc. Appeal No. 36 of 2006 and 52 of 2006.
