Nirman Sudha Vs Housing .and Urban Development Corporation Ltd. (HUDCO) (DRAT Allahabad)
The present appeal before the Debt Recovery Appellate Tribunal (DRAT), Allahabad, was filed under Section 20 of the Recovery of Debts and Bankruptcy Act, 1993 (“RDB Act”) challenging an order dated 08.08.2017, in which the Miscellaneous Application (M.A.) filed by the appellants was dismissed as barred by time. The case arose from financial assistance granted in August 2004 by the respondent financial institution (FI) to the appellants, who executed a deed of guarantee, created an equitable mortgage over their property, and executed various loan documents. When the borrowers defaulted, the account was classified as Non-Performing Asset (NPA), prompting the respondent-FI to issue a legal notice on 16.03.2015. Subsequently, the respondent-FI filed Original Application (O.A.) No. 115/2015 seeking recovery of Rs. 41,04,137 along with interest and costs.
The appellants appeared through counsel on 21.05.2015 but failed to file a written statement despite being granted time and repeatedly filed interlocutory applications, resulting in adjournments. On 14.01.2016, as no one appeared for the appellants, the Tribunal directed ex-parte proceedings, and the final hearing was conducted on 11.02.2016 ex-parte, with judgment reserved for 16.03.2016. Following the ex-parte judgment, the appellants filed an application on 18.02.2016 to recall the orders dated 14.01.2016 and 11.02.2016, which was dismissed by the Tribunal.
