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Legal Heir Can’t Raise New Defence Not Taken by Deceased Borrower DRAT Kolkata

Case Law Details

TaxGuru Citation
2026 taxguru.in 2043
Case Name
Rani Bala Vs State Bank of India (DRAT Kolkata)
Date of Judgement/Order
Only available for paid members
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Rani Bala Vs State Bank of India (DRAT Kolkata)

The Debts Recovery Appellate Tribunal, Kolkata, heard an appeal challenging an order dated 13.10.2025 passed by DRT-III, Chandigarh in O.A. No. 200/2019. By the impugned order, the DRT had closed the appellant’s opportunity to file a written statement and struck off her defence.

The appellant contended that she was the legal representative of Defendant No.2, who had died on 17.12.2024. She argued that she could not file a written statement because her application seeking a legible copy of the original application paper book was not complied with, and that the impugned order deprived her of the opportunity to raise her defence before the DRT.

The Tribunal noted that Defendant No.2, who was the proprietor of Defendant No.1 firm, had been impleaded through his legal representatives after his death, and proceedings were being conducted ex parte against another legal heir. As a legal representative, the appellant stepped into the shoes of Defendant No.2. The Tribunal observed that there was no material to show that Defendant No.2 had ever raised any objection during his lifetime regarding non-supply of a legible paper book. It held that the appellant could not raise pleas which were never taken by the deceased defendant. The Tribunal further observed that such objections appeared to be intended to delay the proceedings.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,475

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