High Court · 2025

W.P.No.33233 of 2024 IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 05.03.2025CORAM :THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICEANDTHE HON'BLE MR.JUSTICE MOHAMMED SHAFFIQW.P.No.33233 of 2024&W.M.P.Nos.36017 to 36020 & 36022 of 2024M/s. Eswaran & Sons Engineers LimitedRep. by tis Director6th Floor, Temple TowersNo.672 (Old No.476)Anna Salai, NandanamChennai 600 035Also at: A Block, Pasupathinath26, Desika Road, MylaporeChennai 600 004...Petitioner Vs.1. The Registrar The Debt Recovery Appellate Tribunal Chennai.2. The Registrar The Debts Recovery Tribunal – I Chennai.__________Page 1 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 3. State Bank of India Rep. by its Assistant General Manager Stressed Asset Management Branch Red Cross Building, Montieth Road Egmore, Chennai.4. M/s. Easun Reyrolle Limited Rep. by its Managing Director 6th Floor, Temple Towers No.672 (Old No.476) Anna Salai, Nandanam Chennai 600 035 Also at: A Block Pasupathinath 26, Desika Road, Mylapore Chennai 600 004.5. Raj H.Eswaran6. ERL International Pvt. Ltd. Rep. by its Managing Director A Block Pasupathinath 26, Desika Road, Mylapore Chennai 600 004. Also at: 10, Jalan Besar 10-12, SIM LIM Tower Singapore 208787.7. Switchcraft Europe Rep. by its Managing Director A Block Pasupathinath 26, Desika Road, Mylapore Chennai 600 004. Also at: GmbH Thyssenstrabe 93 D-46535, Dinslaken Germany.__________Page 2 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 8. DBS Bank Loans & Advances Dept. 806, Anna Salai Chennai 600 002.9. M/s. Axis Bank Corporate Banking Branch Karumuthu Nilayam Ground Floor, No.192, Anna Salai Chennai 600 002.10.M/s. Standard Chartered Bank 4th Floor, No.19, Rajaji Salai Chennai 600 001.11.Canara Bank MM Reddy Complex Old Bangalore Road Hosur 635 109...RespondentsPrayer : Petition filed under Article 226 of the Constitution of India seeking a writ of Certiorarified Mandamus calling for the records relating to the order dated 25.07.2024 in I.A.No.513 of 2023 in AIR(SA) No.1202 of 2023 on the file of the 1st respondent, quash the same and consequentially direct it to hear the appeal bearing AIR(SA) No.1202 of 2023 on merits.For Petitioner:Mr.T.K.BhaskarFor Respondents :Mr.K.Chandrasekaran for Respondent-3__________Page 3 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 No appearance – forRespondents 5, 8, 10 & 11Not ready in notice – for Respondents 4, 6, 7 & 9Tribunal – Respondents 1 & 2ORDER(Order of the Court was made by the Hon'ble Chief Justice)This petition impugns an order dated 25.07.2024 passed by the Debt Recovery Appellate Tribunal rejecting petitioner's application to condone the delay of 52 days.2. The Debt Recovery Appellate Tribunal observed that even if petitioner was taken to be unwell for two weeks, that would still leave 38 days unexplained. 3. Petitioner is an 85 year old individual. In the application for condonation of delay, petitioner has explained that he was under a reasonable impression that he would receive a copy of the impugned order __________Page 4 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 as envisaged under Section 20(3) of the Recovery of Debts and Bankruptcy Act, 1993, after which, he would instruct counsel to file an appeal. While waiting for the order, petitioner fell ill and was advised two weeks' bed rest.4. It is also stated in the additional affidavit in support that thereafter, petitioner came to realise that he had to apply for the certified copy which he did on 24.07.2023 soon after his recovery from illness.5. Considering the overall situation, in our view, the delay has been satisfactorily explained.6. Moreover, as held by the Apex Court in Baleshwar Dayal Jaiswal v Bank of India and others1, unless the scheme of the statute expressly excludes the power of condonation, there is no reason to deny such power to an Appellate Tribunal when the statutory scheme so warrants. The Apex Court further held that the Appellate Tribunal under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 has the power to condone the delay in filing the appeal before it by 1(2016) 1 SCC 444__________Page 5 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 virtue of Section 18(2) of the SARFAESI Act, 2002 and the proviso to Section 20(3) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 [now renamed as the Recovery of Debts and Bankruptcy Act, 1993]. 7. Delay is condoned to enable doing substantial justice to the parties. By delaying the filing of the appeal, petitioner did not stand to benefit. If we do not condone the delay, there is a possibility that a meritorious matter may be thrown out at the very threshold and the cause of justice could be defeated. As against this, when delay is condoned, the highest that can happen is that a cause would be decided on merits after hearing the parties. 8. When substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred, for the other side cannot claim to have vested right in injustice being done because of a non-deliberate action. A litigant does not stand to benefit by resorting to delay. In fact, he runs a serious risk. The approach of the authority should be justice-oriented so as to advance cause of justice. If the __________Page 6 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 case of an applicant is genuine, mere delay should not defeat the claim. 9. In the light of the aforesaid discussion, we are of the opinion that an acceptable explanation was offered by the petitioner and a case of genuine hardship was made out. The refusal by the Debt Recovery Appellate Tribunal to condone the delay was a result of adoption of an unduly restrictive approach. The Debt Recovery Appellate Tribunal appears to have proceeded on the basis that the delay was deliberate, when from the explanation offered by petitioner, it is clear that the delay was neither deliberate nor unexplained.10. The Debt Recovery Appellate Tribunal shall proceed with the appeal on the basis that the delay has been condoned, subject to satisfying the other requirements in law. At the cost of repetition, we clarify that only the delay aspect has been considered and we have not made any observation on the merits of the matter.__________Page 7 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 11. Petition is disposed of. There shall be no order as to costs. Consequently, all the interim applications also stand disposed.(K.R.SHRIRAM, CJ) (MOHAMMED SHAFFIQ,J.) 05.03.2025 Index : Yes/NoNeutral Citation:Yes/NokplTo1. The Registrar The Debt Recovery Appellate Tribunal Chennai.2. The Registrar The Debts Recovery Tribunal – I Chennai.3. The Assistant General Manager State Bank of India Stressed Asset Management Branch Red Cross Building, Montieth Road Egmore, Chennai.__________Page 8 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 4. DBS Bank Loans & Advances Dept. 806, Anna Salai Chennai 600 002.5. M/s. Axis Bank Corporate Banking Branch Karumuthu Nilayam Ground Floor, No.192, Anna Salai Chennai 600 002.6. M/s. Standard Chartered Bank 4th Floor, No.19, Rajaji Salai Chennai 600 001.7. Canara Bank MM Reddy Complex Old Bangalore Road Hosur 635 109.__________Page 9 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 THE HON'BLE CHIEF JUSTICE AND MOHAMMED SHAFFIQ,J. (kpl) W.P.No.33233 of 2024 05.03.2025__________Page 10 of 10

W.P.No.33233 of 2024 IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 05.03.2025CORAM :THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICEANDTHE HON'BLE MR.JUSTICE MOHAMMED SHAFFIQW.P.No.33233 of 2024&W.M.P.Nos.36017 to 36020 & 36022 of 2024M/s. Eswaran & Sons Engineers LimitedRep. by tis Director6th Floor, Temple TowersNo.672 (Old No.476)Anna Salai, NandanamChennai 600 035Also at: A Block, Pasupathinath26, Desika Road, MylaporeChennai 600 004...Petitioner Vs.1. The Registrar The Debt Recovery Appellate Tribunal Chennai.2. The Registrar The Debts Recovery Tribunal – I Chennai.__________Page 1 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 3. State Bank of India Rep. by its Assistant General Manager Stressed Asset Management Branch Red Cross Building, Montieth Road Egmore, Chennai.4. M/s. Easun Reyrolle Limited Rep. by its Managing Director 6th Floor, Temple Towers No.672 (Old No.476) Anna Salai, Nandanam Chennai 600 035 Also at: A Block Pasupathinath 26, Desika Road, Mylapore Chennai 600 004.5. Raj H.Eswaran6. ERL International Pvt. Ltd. Rep. by its Managing Director A Block Pasupathinath 26, Desika Road, Mylapore Chennai 600 004. Also at: 10, Jalan Besar 10-12, SIM LIM Tower Singapore 208787.7. Switchcraft Europe Rep. by its Managing Director A Block Pasupathinath 26, Desika Road, Mylapore Chennai 600 004. Also at: GmbH Thyssenstrabe 93 D-46535, Dinslaken Germany.__________Page 2 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 8. DBS Bank Loans & Advances Dept. 806, Anna Salai Chennai 600 002.9. M/s. Axis Bank Corporate Banking Branch Karumuthu Nilayam Ground Floor, No.192, Anna Salai Chennai 600 002.10.M/s. Standard Chartered Bank 4th Floor, No.19, Rajaji Salai Chennai 600 001.11.Canara Bank MM Reddy Complex Old Bangalore Road Hosur 635 109...RespondentsPrayer : Petition filed under Article 226 of the Constitution of India seeking a writ of Certiorarified Mandamus calling for the records relating to the order dated 25.07.2024 in I.A.No.513 of 2023 in AIR(SA) No.1202 of 2023 on the file of the 1st respondent, quash the same and consequentially direct it to hear the appeal bearing AIR(SA) No.1202 of 2023 on merits.For Petitioner:Mr.T.K.BhaskarFor Respondents :Mr.K.Chandrasekaran for Respondent-3__________Page 3 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 No appearance – forRespondents 5, 8, 10 & 11Not ready in notice – for Respondents 4, 6, 7 & 9Tribunal – Respondents 1 & 2ORDER(Order of the Court was made by the Hon'ble Chief Justice)This petition impugns an order dated 25.07.2024 passed by the Debt Recovery Appellate Tribunal rejecting petitioner's application to condone the delay of 52 days.2. The Debt Recovery Appellate Tribunal observed that even if petitioner was taken to be unwell for two weeks, that would still leave 38 days unexplained. 3. Petitioner is an 85 year old individual. In the application for condonation of delay, petitioner has explained that he was under a reasonable impression that he would receive a copy of the impugned order __________Page 4 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 as envisaged under Section 20(3) of the Recovery of Debts and Bankruptcy Act, 1993, after which, he would instruct counsel to file an appeal. While waiting for the order, petitioner fell ill and was advised two weeks' bed rest.4. It is also stated in the additional affidavit in support that thereafter, petitioner came to realise that he had to apply for the certified copy which he did on 24.07.2023 soon after his recovery from illness.5. Considering the overall situation, in our view, the delay has been satisfactorily explained.6. Moreover, as held by the Apex Court in Baleshwar Dayal Jaiswal v Bank of India and others1, unless the scheme of the statute expressly excludes the power of condonation, there is no reason to deny such power to an Appellate Tribunal when the statutory scheme so warrants. The Apex Court further held that the Appellate Tribunal under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 has the power to condone the delay in filing the appeal before it by 1(2016) 1 SCC 444__________Page 5 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 virtue of Section 18(2) of the SARFAESI Act, 2002 and the proviso to Section 20(3) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 [now renamed as the Recovery of Debts and Bankruptcy Act, 1993]. 7. Delay is condoned to enable doing substantial justice to the parties. By delaying the filing of the appeal, petitioner did not stand to benefit. If we do not condone the delay, there is a possibility that a meritorious matter may be thrown out at the very threshold and the cause of justice could be defeated. As against this, when delay is condoned, the highest that can happen is that a cause would be decided on merits after hearing the parties. 8. When substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred, for the other side cannot claim to have vested right in injustice being done because of a non-deliberate action. A litigant does not stand to benefit by resorting to delay. In fact, he runs a serious risk. The approach of the authority should be justice-oriented so as to advance cause of justice. If the __________Page 6 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 case of an applicant is genuine, mere delay should not defeat the claim. 9. In the light of the aforesaid discussion, we are of the opinion that an acceptable explanation was offered by the petitioner and a case of genuine hardship was made out. The refusal by the Debt Recovery Appellate Tribunal to condone the delay was a result of adoption of an unduly restrictive approach. The Debt Recovery Appellate Tribunal appears to have proceeded on the basis that the delay was deliberate, when from the explanation offered by petitioner, it is clear that the delay was neither deliberate nor unexplained.10. The Debt Recovery Appellate Tribunal shall proceed with the appeal on the basis that the delay has been condoned, subject to satisfying the other requirements in law. At the cost of repetition, we clarify that only the delay aspect has been considered and we have not made any observation on the merits of the matter.__________Page 7 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 11. Petition is disposed of. There shall be no order as to costs. Consequently, all the interim applications also stand disposed.(K.R.SHRIRAM, CJ) (MOHAMMED SHAFFIQ,J.) 05.03.2025 Index : Yes/NoNeutral Citation:Yes/NokplTo1. The Registrar The Debt Recovery Appellate Tribunal Chennai.2. The Registrar The Debts Recovery Tribunal – I Chennai.3. The Assistant General Manager State Bank of India Stressed Asset Management Branch Red Cross Building, Montieth Road Egmore, Chennai.__________Page 8 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 4. DBS Bank Loans & Advances Dept. 806, Anna Salai Chennai 600 002.5. M/s. Axis Bank Corporate Banking Branch Karumuthu Nilayam Ground Floor, No.192, Anna Salai Chennai 600 002.6. M/s. Standard Chartered Bank 4th Floor, No.19, Rajaji Salai Chennai 600 001.7. Canara Bank MM Reddy Complex Old Bangalore Road Hosur 635 109.__________Page 9 of 10 https://www.mhc.tn.gov.in/judis W.P.No.33233 of 2024 THE HON'BLE CHIEF JUSTICE AND MOHAMMED SHAFFIQ,J. (kpl) W.P.No.33233 of 2024 05.03.2025__________Page 10 of 10