44 days Delay in filing written Statement relating to 489 Cr Outstanding Public Money: DRAT directs to Pay 50 K to Canara Bank

Wind World Wind Resources Development Pvt. Ltd., the appellant, filed the appeal against the order dated 06.03.2024 passed by DRT whereby the application filed by the appellant for condonation of delay in filing the written statement to the O.A. was dismissed and the written statement was not taken on record.

Counsel for defendants no. 1 to 3 submitted that defendant no. I & 2 are before NCLT, Ahmadabad. Counsel for defendants no. 1 to 3 further submitted that she has already filed the status of matter pending before NCLT. Counsel for defendant no. 2 submitted that he has moved an I.A. No. 217/2024 for seeking condonation of delay of 14 days in filing the written statement. It is submitted that complete OA along with legible paper book was received on 08.01.2024 and written statement was filed on 20.02.2024. Delayed is caused due to defendant office were lying in Mumbai.

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Some delay has been caused and it is prayed to condone a 14-day delay. Hence, the Tribunal is of the view that WS filed by the defendant on 20.02.2024 is beyond the statutory period of 30-days. Moreover, no exceptional circumstances have been given in the IAS for an extension of time to file the WS. Even otherwise, this Tribunal has no power to consider the Written Statement filed after expiry of limitation period.

The appellant has challenged the above order on the ground that the appellant herein is not the principal borrower but a guarantor only, and the respondent bank has delayed the proceedings by not supplying the legible copy of the O.A. paper book.

Counsel for the appellant has drawn the attention of the Tribunal to the order dated 29.11.2023 passed by the Registrar, DRT, where the counsel for the appellant had categorically stated that the O.A. paper book supplied to him was not complete and the bank was directed to supply the same through e-mail within three days.

It has also been recorded in the said order that the bank had served the O.A. paper book after lapse of 70 days from the order passed by the Presiding Officer on 19.09.2023, which was not only violation of order of the Presiding Officer, but also causing unnecessary delay in the proceedings of that High Value O.A.

Registrar had then directed the counsel for the bank to serve the said pages to the appellant's counsel within 3 days.

Registrar wherein the counsel for the appellant had informed that respondents 1 and 2 were under proceedings before NCLT and in this regard he wanted to file necessary application before the DRT.

The record also reveals that on the said date, the counsel for the appellant had stated that she will file written statement along with application for condonation of delay, for appellant. Registrar, however, recorded in the said order that since appellant has failed to file written statement within the statutory period of 30 days, the matter was being placed before the Presiding Officer on 26.02.2024. for appropriate orders/directions.

It is submitted that the appellant being a corporate entity and approvals are required at every stage from the top management, therefore counsel for the appellant was unable to file written statement within 30 days of receipt of complete set of O.A. paper book as all documents were lying with its corporate office at Mumbai and approval was to be received therefrom.

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Accordingly, the written statement was filed on 20.02.2024 along with an application for condonation of delay in filing the written statement, which, however, the DRT dismissed vide the impugned order dated 06.03.2024. Counsel for the appellant prays for directing the DRT to take on record the written statement filed by him as delay in filing the written statement was neither intentional nor deliberate.

Counsel for the respondent bank, on the other hand, has submitted that the DRT has observed in the impugned order that the written statement filed by the appellant on 20.02.2024 was beyond the statutory period of 30 days and no exceptional circumstances have been given in the application for condonation of delay for extension of time to file the written statement and the DRT has, even otherwise, no power to consider the written statement filed after expiry of limitation period.

Counsel for the respondent bank has contended that the delay in filing the written statement was intentional and deliberate, as the appellant ought to have filed the written statement within 30 days of receiving a complete and legible copy of the O.A. paper book. He also submitted that the factum of defendants 1 and 2 being under the NCLT proceedings could have been brought to the notice of the DRT in the written statement itself, without taking time to file a separate application for bringing this fact to the notice of the Tribunal.

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The appellant ought to have filed its written statement within 30 days from the said date. However, according to the appellant, the delay in filing the written statement is because it wanted to bring to the notice of the DRT the fact that defendants 1 and 2 are before NCLT, and approval for filing the written statement had also to come from its corporate office at Mumbai.

A single bench of Justice Brijesh Sethi observed that the appellant has filed its written statement on 44th day on 20.02.2024, i.e. beyond the period of 30 days but within extended period of 15 days thereafter and that huge amount of public money of over Rs 489 crores is outstanding, the Tribunal believes that it will be in the interest of justice, if the appellant is allowed to contest its case on merit, by taking on record the written statement which already stands filed, subject to it paying a cost of Rs. 1 Lakh, out of which Rs.50,000/- to the counsel for the bank and Rs.50,000/- to Canara Bank.

On payment of the cost within 30 days, the DRT is directed to take on record the written statement filed by the appellant and proceed with the matter.

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