SRI SARASWATI GRANITES Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THIS pertains to the application filed on 20th August, 2001 under Section 22(2)(g) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 for setting aside the ex parte judgment dated 24.7.2001 passed in O.A. No. 36 of 1999.

(2.) 1 have perused the miscellaneous application along with counter reply filed by Decree Holder Bank and the written arguments filed on 2.1.2003 on behalf of the applicants and heard the arguments of both the parties on 20.12.2002. Nobody appeared for defendant Nos. 2 to 4 (Guarantor Defendants 3 to 5 in O.A. 36/99).

(3.) THE Decree holder Bank (Defendant No. 1) vehemently controverted the assertion of the petitioners mainly on the ground that there is no sufficient cause for non-contesting before the DRT, Patna during the long period since filing of the case in March 99 till final disposal on 24.7.2001. THEy have relied on Delhi High Court judgment reported in AIR 1998 page 213, to strengthen their points that negligence on the part of the Counsel is not itself sufficient to allow the application. It is also their case that the defendants had admitted the loan and has made several compromise proposals but the Bank has not received their dues as yet and, therefore, they should not suffer because of mere alleged negligence of the agent appointed by the petitioners. It was also contended during argument that the petitioner has not filed any written communication made between them and the Counsel nor has taken any action for the lapses of the Counsel and in the absence of material proof they should not be believed.