MSTC Ltd. v. Standard Chartered Bank

MSTC Ltd.

…Appellant

Standard Chartered Bank

…Respondent

Case No: Appeal No. 10/2023

Date of Judgement: 07/08/2023

Judges:

Mr Justice Ashok Menon, Chairperson

For Appellant: Mr Gaurav Joshi Senior Counsel along with Mr Rohit Gupta, Ms Anamika Singh and Ms Nashrin Shaikh, Advocate.

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Facts:

Standard Chartered Bank (SCB) filed an Original Application (O.A.) No. 43 of 2012 before the Debts Recovery Tribunal-I, Mumbai (D.R.T.) against MSTC Ltd. for recovery of ₹191,03,54,070.96 including principal amount of ₹144,16,24,008.39 and interest of ₹47,41,56,060.63 due as on 06/03/2012 along with future interest at 12.25% per annum. SCB filed an Interlocutory Application (I.A.) No. 302 of 2017 under Rule 12(5) of the Debts Recovery Tribunal (Procedure) Rules, 1994 seeking a direction from the D.R.T. to MSTC Ltd. to pay ₹222,51,00,000/- admitted as due in its annual reports. The D.R.T. allowed the application vide order dated 16/09/2017 and directed MSTC Ltd. to pay ₹222,51,00,000/- to SCB within 30 days. MSTC Ltd. challenged this order before the Debts Recovery Appellate Tribunal (DRAT).

Arguments by MSTC Ltd. (Appellant):

Arguments by Standard Chartered Bank (Respondent):

Cases Cited:

Sections and Laws Referred:

Rule 12(5) of the Debts Recovery Tribunal (Procedure) Rules, 1994 (now Rule 12(8))

Order XII Rule 6 of the Code of Civil Procedure, 1908

Sections 128 and 129 of the Companies Act, 2013

Indian Accounting Standard (Ind AS) 37