YFC Private Ltd. & Ors. Vs Bank of Baroda & Ors. (DART Kolkata)
The Debt Recovery Appellate Tribunal (DRAT), Kolkata, dismissed an appeal filed by YFC Private Ltd. & Ors. against Bank of Baroda & Ors., upholding the Debt Recovery Tribunal (DRT)’s refusal to grant a three-month extension for loan account restructuring. The underlying case is an Original Application (O.A.) filed by the bank in 2023 under Section 19 of the Recovery of Debts and Bankruptcy (RDB) Act, which remains pending.
The appellants, who are the borrowers, sought the extension after their initial restructuring proposal was declined in March 2025 and a fresh proposal was submitted in June 2025. The bank opposed the extension, arguing that O.A. proceedings shouldn’t be stalled by restructuring proposals.
The DRAT noted that the DRT had already granted multiple extensions, specifically on July 10, 2025, and July 31, 2025, before finally rejecting the request on September 4, 2025. The DRT’s refusal was primarily based on the statutory 180-day period prescribed for the disposal of O.A.s under the RDB Act and the fact that sufficient time had already been provided.
The DRAT found no reason to interfere with the DRT’s order, observing that the proceedings were being unduly delayed on the premise of restructuring. The Appellate Tribunal, therefore, dismissed the appeal in limine (at the threshold) and directed the DRT to decide the pending O.A. expeditiously. No specific judicial precedent was cited in the body of this order.
