DRAT Penalizes Guarantors with Interest for Negligent Appeal Pursuit

M. Balasubramaniam Vs Federal Bank Limited (ITAT Chennai) Debt Recovery Appellate Tribunal (DRAT) in Chennai has directed several guarantors, including M. Balasubramaniam, to pay their pro-rata share of a defaulted loan to Federal Bank Limited, but with a significant rider: the amount must be paid with simple interest at 6% per annum calculated from September 2002. The tribunal imposed the interest penalty after concluding that the appellants demonstrated a “lackadaisical attitude” and negligence in prosecuting their appeal, which had been delayed for years due to dismissals for no...