Our Client settles at less than 5% of dues due to impact of counter-claim against Bank:-
This is just for your information that one of our clients have
settled with the bank for amount less than 5% of the total dues vide State
Bank of Mysore vs. Akasha Textiles, OA No - 3163/2000 in DRT-II Mumbai. Such settlement
could be possible because of the impact of counter-claim as may be seen from the
client’s mail reproduced below:-
-----Original Message-----
From: vulcan22@vsnl.com [mailto:vulcan22@vsnl.com]
Sent: Friday, July 13, 2007 3:46 PM
To: ramkishan@drtsolutions.com
Subject:
Dear Shri Ram Kishan,
Trust this finds you fine.
I am writing to you after a long delay. This is to
inform you that the SBM DRT case has been settled. Finally the bank came around.
I paid Rs. 62 lacs against the suit amount of Rs. 8.65 crore in Sept.2000. It
took bank to close the case in 6.5 years. On 20th March 2007, SBM withdrew the
OA and I counterclaim. Charge has been released and form 17 filed.
There is no denying
that the bank came under pressure to settle because of Counter Claim. Auditors
had raised this issue in their report for possible claim for Rs.1158 crore.
Credit goes to you solely to compile material and backing me with solid support.
I once again thank you for the trouble that you
have taken for me.
With best regards,
Yours Sincerely,
G.C.Garg.
Important Victory of Our Client against Bank:-
One of our important clients at Chandigarh who filed damage suit of Rs. 1825
crores against a public sector Bank on 13.01.05 registered an important victory
on 03.03.07 when the Court waived the entire court fee despite all opposition by
the defendant Bank. The alleged dues of the Bank are Rs. 30 crores. Since the
damages are much more than the alleged claim of the bank, no recovery action can
be executed till the said damage suit is finally decided. The usual delay in the
litigation does not affect our client as the damages are increasing day by day
due to interest charges at rate which is much higher than the increase in the
alleged claim of the bank. The said damage suit was drafted by us and all
necessary advice and guidance was provided on all dates of proceedings.
Counter-claim is the only defence for the borrowers against Notice under
Securitisation Act
and or Original Application under the DRT Act:-
Under the present provisions of law,
the only legal defence for the borrowers is
Counter-claim giving quantum of loss and damages suffered due to wrong doings of
the lenders. The pleadings must be prepared by a person having mastery of facts
and mastery of law. The documents such as project report, application for
financial assistance, loan sanction letters, correspondence, balance sheets,
annual reports need to be referred to properly keeping in view the law of
pleadings, law of torts, law of damages, principles of natural justice, equity
and good conscience. If you are unable to get such pleadings prepared, our
professional services may be utilized. With our drafting of pleadings, you get
additional advantage of expert advice during course of litigation from beginning
to end. Since our clients are from all parts of the country and due to our
focussed attention, you get complete and exhaustive guidance. All our clients
are having upper hand over the lenders. In many cases the lenders have come
forward to waive total interest and settle at fraction of the principal amount.
In one of the case the proposal of the lender is waive the total claim provided
the borrower withdraws the damage claim, which the borrower has declined.
Many of our clients and visitors of this web sites desired to
know the success and results of counter-claims prepared by us. Keeping in view,
their desires, this special page has been introduced. In this respect, the
progress is as under:-
(1) The provision of counter-claims in DRT Act 1993 was
specifically introduced only in 2001. We started preparing the counter-claims in
the year 2002.
(2) We need only documents and brief history of the case. The
documents must contain the project report, sanction letters, correspondence,
balance sheets, appraisal reports if any etc. With such inputs we prepare the
entire pleadings as well as the counter-claim in money value. Since we have long
experience in this line and are handling cases from all over the country, we
have acquired specialization and expertise in preparing the counter-claims based
on law of torts. We have introduced the application of the law of torts in
banking cases for the first time in the country. Even top law firms and Supreme
Court Advocates are awarding contracts to us to prepare the counter-claims as it
is not possible for them to prepare the same based on the technical documents
like project reports and balance sheets keeping in view the provisions of law
including the law of torts and law of damages.
(3) Past several years, the counter-claims prepared by us are under
adjudication in various DRTs and civil courts in the country. In most of the
cases, the bankers are finding difficult to submit their replies or written
statements to the counter-claims prepared by us. In some case, they have
requested extension after extension of time. In many cases, the bankers have
come forward for settlements. It is worthwhile to mention following specific
cases. The names of the parties, banks and place have not been mentioned due to
obvious reasons. If some one specifically approaches to us to have the details,
we shall provide the same after satisfying that such information will not be
misused. The success and results of the counter-claims prepared by us are as
under:-
Case Mark - 05/Mal/Cha/1825
The borrower filed a damages suit of
Rs. 1825 crores against a public sector bank in civil court in January '05. The
bank dues are stated to be nearly Rs. 30 crores for an industrial finance. It is
learnt that the bank sought the best legal advice in the country. Accordingly
the bank approached the borrower for settlement. The proposal of the bank was
that the entire bank dues would be waived as well as the entire property under
mortgage or hypothecation would be freed. The borrower flatly refused and
preferred to contest the counter-claim in the court of law. This counter-claim
was drafted by us and was thoroughly scrutinized by the borrower from all angles
by best legal brains of the country. The client registered an important victory
when the Court waived the court fee and declared the plaintiffs Indigent
Persons. Now the bank cannot execute any recovery action till this damage suit
is finally decided.
.Case Mark - 02/Kal/Ind/1834
The borrower filed a counter-claim of Rs. 1834 crores against
a public sector bank in DRT in 2002. The bank took considerable time of several
months to reply to the said counter-claim. In desperation, the bank has
appointed a very senior Supreme Court advocate to contest the case in DRT. The
bank being one of the biggest bank in the country has most experienced law
department as well as large numbers of most competent and experienced lawyers as
counsels for DRTs, even then one of the most senior Supreme Court advocate has
been assigned the task of contesting in the most lower court of DRT. This
counter-claim was drafted by us at the stage when the bank was went upon closing
the factory and taking over the personal properties of the borrower and
guarantors in 2002 itself. Now due to the counter-claim, the bank has been
restrained from all such actions as since the counter-claim is much larger than
the alleged debt and hence there is no debt due.
.Case Mark - 04/Gar/Mum/1030
The borrower filed
his written statement in January '03. It was drafted by one of the leading law
firms. No counter-claim was set up. The case came up for final hearing. At this
stage the borrower came to us whether they can raise their counter-claim. We
examined the documents. Since in practically every case, the counter-claim can
be filed, we took up this case and in order to have breathing time for drafting
and filing the counter-claim, we prepared few interim applications which were
taken up for adjudication. In the meantime we prepared the counter-claim of Rs.
1030 crores. There were few rounds of settlement and hence the counter-claim
prepared by us by held in abeyance and it was filed nearly after one year as the
settlement could not be reached. Finally the counter-claim was filed in August
'05. Thus the case where final hearing was due in November '03 and borrower was
expecting decree could get not only get time due to our professional advice, the
counter-claim was also filed as late as August '05. The said leading law firm
was convinced by our approach and the borrower gained new confidence.
.Case Mark - 03/Aan/Mum/16
The borrower
approached us in 2003. We prepared damage suit of Rs. 16 crores against a
co-operative bank. The bank made several attempts under Securitisation Act to
take possession of the factory and other assists. The borrower alongwith his
advocates were in constant touch with us. The borrower filed a writ petition in
High Court. During the proceedings, the bank even took possession of the
factory. In the appeal to DRT, all the facts were submitted in detail as per our
pleadings of the damage suit. The PO DRT ruled in favour of the borrower and
ordered that the possession taken under the Securitisation act was illegal. The
bank has been ordered to return the possession with costs. Such fight was
possible due to our exhaustive pleadings as well as guidance during the
litigation. The advocates also worked hard and argued meticulously at every
stage of the litigation.
