Court Grants Interim Injunction to Protect Petitioner's Interests

The Court granted an ad interim injunction in favor of the petitioner to prevent potential irreparable loss, considering substantial payments made and the risk of actions against properties. The interim orders aimed to maintain the status quo and protect the petitioner's interests until the writ petition's disposal, safeguarding against third-party rights on the properties during legal proceedings.

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Issues involved:
1. Interpretation of loan account classification as Non Performing Assets (NPA) and outstanding dues.
2. Discrepancies in the amount payable according to various tribunal orders.
3. Validity of the order of Debts Recovery Appellate Tribunal regarding the calculation of interest rates.
4. Granting of interim orders to prevent irreparable loss to the petitioner.

Analysis:
1. The petitioner's counsel highlighted that a substantial sum had been paid since the loan account was classified as NPA, including an amount mentioned in the interim order. The respondent Bank, however, claimed that there was still a significant outstanding amount due as per the orders of Debts Recovery Tribunal-II Chennai and a counter claim. The petitioner made a payment without prejudice to their rights, emphasizing discrepancies in the amount owed.

2. The petitioner pointed out that the respondent Bank, in a separate filing before the National Company Law Tribunal (NCLT), contended that the petitioner was liable to pay a different sum as per the order of Debts Recovery Tribunal. The Bank argued that the DRT order was erroneous and insisted on recovering the entire advances with contractual interest. This discrepancy in the amount claimed raised questions about the accuracy of the financial obligations.

3. The counsel for the petitioner drew attention to the order of the Debts Recovery Appellate Tribunal, which acknowledged the Bank's entitlement to interest but had not quantified the amount to be paid. The petitioner sought interim orders due to the pending quantification of the interest amount. The validity and calculation of interest rates as per the tribunal's order were under scrutiny, indicating a need for clarity on the financial aspects of the case.

4. Considering the circumstances, the Court found that the petitioner had made substantial payments and faced potential actions against their properties, leading to irreparable loss. To prevent such hardship, the Court granted an ad interim injunction until a specified date. The balance of convenience favored the petitioner, warranting protective measures to maintain the status quo regarding the properties in question until the writ petition's disposal. The interim orders aimed to safeguard the petitioner's interests and prevent any third-party rights on the properties during the legal proceedings.

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