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.
