2006 (12) TMI 229

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....iven credit to the sole proprietress of Victory Cashews and since there is a default in payment of the loan, proceedings were initiated by the bank, before the Debts Recovery Tribunal, Chennai. The original, application is pending before the Tribunal in OA No. 232 of 2001. 2. In the meanwhile, the banker, who is the respondent herein, issued a notice under section 13(4) of the Securitisation an....

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....nd that was discussed in detail in the judgment. Relying on the said judgment, the learned counsel for the petitioner forcefully contended that since the original application is pending before the Debts Recovery Tribunal, Chennai, the respondent bank cannot invoke the provisions of NPA Act. 5. While so, Mr. V. Rajasekaran, learned counsel appearing for the respondent bank, relied on the judgmen....

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....ision may deal with myriad circumstances which we do not wish to spell out herein. 6. Thus, it is clear that through the latest pronouncement, the Apex Court has clarified that even if original application is pending before DRT, there is no bar to initiate action under NPA Act by the banker and withdrawal of such application pending before DRT is not a pre-condition for taking recourse to NPA A....