Untag Fashions Private Limited & Ors. Vs UCO Bank & Ors. (Calcutta High Court)
Calcutta High Court held that DRAT order dismissing appeal of MSME upheld since MSME did not avail of the facilities and allowed the Securitization and Reconstruction of financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 to run its course, then it is not entitled to any protection.
Facts- The appellant no. 1 is a Micro, Small and Medium Enterprise (MSME) within the meaning of The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. He submits that, there are guidelines/circulars issued by the Reserve Bank of India governing MSME. He submits that, such circulars/guidelines are binding of the Banks in view of Sections 21 and 35A of the Banking Regulation Act.
The appellants draws the attention of the Court to the supplementary affidavit and to a letter dated August 26, 2019. He submits that, a proposal for rehabilitation was submitted to the bank for restructuring in terms of the guidelines issued by the RBI. He submits that the Debts Recovery Tribunal is not the appropriate forum to undertake a restructuring programme. The appellants and the Bank are governed by the guidelines of the RBI. An opportunity should be afforded to the appellants for restructuring.
