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Supreme Court of India 2020-01-21 allowed

STANDARD CHARTERED BANK vs MSTC LIMITED

Bench: 2 — Rohinton Fali Nariman, V. Ramasubramanian

In Brief

Standard Chartered Bank purchased receivables from MSTC Limited under a Receivables Purchase Agreement. When an insurance claim was denied, the Bank filed a recovery application before the Debt Recovery Tribunal (DRT) in 2012. MSTC challenged the DRT's jurisdiction, a dispute resolved in appeal only in 2017. The Bank then filed an application for judgment on admission, which the DRT allowed. MSTC sought review, but the DRT dismissed it as time-barred. The Bombay High Court set aside this dismissal, holding that the Limitation Act applied to review petitions. The Supreme Court reversed the High Court, holding that the Limitation Act applies only to original applications under Section 19, not to independent review petitions under Rule 5A, which have a strict 30-day deadline with no condonation power. Appeals from tribunal orders, including review dismissals, lie to the Appellate Tribunal under Section 20."

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Debt Recovery Limitation Procedure Civil Procedure Statutory Tribunal Administrative Law Banking Law

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