19(5)(i)

Whether the DRT has the power to grant an extension of time as per Sec. 5 of the Limitation Act, 1963 to file a written statement under Section 19(5) of the Recovery of the Debts and Bankruptcy Act, 1993 – Om Shiv Estate Pvt. Ltd. Vs. Punjab National Bank – DRAT Mumbai

Hon’ble DRAT held that:

(i) As per Section 19(5) of the Recovery of the Debts and Bankruptcy Act, 1993 , the Presiding Officer can grant only one extension that too of only fifteen days to file the written statement in exceptional cases or special circumstances by reasons recorded in writing.
(ii) A written statement cannot be received beyond the stipulated time or extended time mentioned in Sec. 19(5)(i) of RDB Act.
(iii) The Appellants cannot resort to the decision of the Hon’ble Supreme Court in Suo Moto Writ Petition No. 3 of 2020 to get the time extended because the time for filing the written had expired long before the onset of the pandemic and hence, no extension is possible.

Whether the DRT has the power to grant an extension of time as per Sec. 5 of the Limitation Act, 1963 to file a written statement under Section 19(5) of the Recovery of the Debts and Bankruptcy Act, 1993 – Om Shiv Estate Pvt. Ltd. Vs. Punjab National Bank – DRAT Mumbai Read Post »

Service means, service of the notice on the defendants along with copy of the O.A. and all the documents, upon which the Bank is relying. A mere receipt of notice/summons or publication in the newspaper, cannot be said to be complete service. – M/s Siddhi Vinayak Industries & Others Vs. IDIBI Bank – DRAT Allahabad Bench

There is no dispute on the point that as per provision of section 19(5)(i) of the RDB Act, 1993, the defendants are required to file written statement within 30 days from the date of service and the period can be extended for further 15 days by the Tribunal recording special reasons. This provision has been held to be mandatory by the Hon’ble Madhya Pradesh High Court in W.P. No. 2271/2018 – M/s Crest Steel and Power Private Limited Vs. Punjab National Bank, decided on 10.05.2018. However, the term “service” of the summons cannot be restricted to a limited purpose. Service means, service of the notice on the defendants along with copy of the O.A. and all the documents, upon which the Bank is relying. A mere receipt of notice/summons or publication in the newspaper, cannot be said to be complete service. The written statement can only be prepared on the basis of the contents of the O.A. and the documents furnished by the Bank. If it is proved that the notice is served with all the relevant documents on a particular date, the period of 30 days starts from that date.

Service means, service of the notice on the defendants along with copy of the O.A. and all the documents, upon which the Bank is relying. A mere receipt of notice/summons or publication in the newspaper, cannot be said to be complete service. – M/s Siddhi Vinayak Industries & Others Vs. IDIBI Bank – DRAT Allahabad Bench Read Post »

The discretion under Section 19(5)(i) of RDB Act, 1993 to extend the period for further 15 days, in continuity of 30 days, lies with the Presiding Officer in exceptional circumstances, but not beyond that in any case – M/s Frost Infrastructure & Energy Ltd. Vs. Indian Overseas Bank – DRAT Allahabad Bench

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The discretion under Section 19(5)(i) of RDB Act, 1993 to extend the period for further 15 days, in continuity of 30 days, lies with the Presiding Officer in exceptional circumstances, but not beyond that in any case – M/s Frost Infrastructure & Energy Ltd. Vs. Indian Overseas Bank – DRAT Allahabad Bench Read Post »

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