Case Law Details
Venus P P V Spinning Mills (P) Ltd. Vs Authorized Officer South Indian Bank (DRAT Chennai)
The Debt Recovery Appellate Tribunal (DRAT) in Chennai has disposed of an appeal filed by Venus P P V Spinning Mills (P) Ltd. against the South Indian Bank, choosing not to interfere with an interim order and instead directing the lower tribunal to expedite the final disposal of the main case.
The appeal was initiated against a conditional order dated March 22, 2022, from the Debt Recovery Tribunal (DRT) in Coimbatore. The DRT had directed the spinning mill to deposit ₹7 crores in two equal instalments as a condition in a pending matter.
This underlying dispute, registered as Securitisation Application (SA) No. 288/2022, concerns the company’s challenge to a sale notice issued by the South Indian Bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.
The DRAT noted that since the main Securitisation Application was still pending before the DRT, the most effective course of action was to ensure a swift resolution of the core issue rather than adjudicating the appeal against an interim directive. This approach aligns with the general judicial principle of avoiding delays caused by prolonged litigation over preliminary orders.
In its order dated September 15, 2025, the DRAT directed the Presiding Officer of DRT, Coimbatore, to dispose of the main application “on merits and in accordance with law, as expeditiously as possible.”
To provide immediate relief, the appellate tribunal also granted a one-month interim stay on any further recovery measures by the bank. It clarified that after this period, the DRT would have the discretion to decide whether to continue the stay based on the requirements of the case. The appeal was disposed of with these directions.
FULL TEXT OF THE ORDER OF DRAT CHENNAI
1. This Appeal is filed against the order passed in IA 1050/2022 in SA 288/2022 wherein a conditional order was passed by Learned Presiding Officer, DRT, Coimbatore, on 22.03.2022 directing the Appellants to deposit a sum of Rs.7 Crores in two equal instalments on or before 19.04.2022 and 17.05.2022, respectively. Challenging said order, this Appeal is filed.
2. The SA 288/2022 was filed against the sale notice dated 11.02.2022 published in “The New Indian Express” and “Dinamani”, on 18.02.2022. The said SA is still pending. In the said circumstances, this Tribunal is of the view that the Appeal filed against an Interim Order can be disposed of giving direction to the Learned Presiding Officer, to dispose of the main SA 288/2022, as expeditiously as possible.
3. In this view of the matter, this Appeal is disposed of directing the Learned Presiding Officer, DRT, Coimbatore to dispose of SA 288/2022 on merits and in accordance with law, as expeditiously as possible.
4. In view of above, the Appeal in M.A.(S.A):41/2024 is disposed of. Both the parties shall bear their own costs. All pending IAs, if any, stand closed.
5. There shall be an interim order of stay of further proceedings of measures by the Respondent Bank for a period of one month from today. Then, it is for the Learned Presiding Officer to decide whether to continue or not to continue the stay, on the basis of the exigency and need.
[Dictated to Athistamani, PS, in open court, transcribed by her, corrected and signed by me this 15th of September, 2025]
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