# In the matter of INMA International Ltd. and Ors. v. Indian Overseas Bank & Ors.

> HC judgment dated 2025-04-03. Citation: TCN-2025-HC-00024. The case involves six writ petitions challenging a common order dated 14.11.2019 by the Debt…

- **Court:** HC
- **Order date:** 3 Apr 2025
- **Citation:** TCN-2025-HC-00024
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/inma-international-ltd-and-ors-v-indian-overseas-bank-ors-04efbf2a

## Summary

### Background

The case involves six writ petitions challenging a common order dated 14.11.2019 by the Debt Recovery Appellate Tribunal (DRAT) in R.A. Nos. 110, 111, and 138 of 2019. Three petitions were filed by INMA International Limited and the other three by Indian Overseas Bank. The core issue revolves around the scope of sub-section (8) to Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act). The dispute originated from loan facilities availed by INMA International Limited for engineering constructions, where payments were delayed by the principal contractor, leading to financial constraints and NPA classification. The respondent bank initiated recovery proceedings before the Debts Recovery Tribunal (DRT), and a counter claim was filed by the petitioners

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## Facts

INMA International Limited, engaged in engineering constructions, secured a contract for the Chennai Metro Rail Project in 2012. Indian Overseas Bank sanctioned loan facilities, including cash credit and a letter of guarantee. Payments were delayed by the principal contractor, leading to financial difficulties for INMA. The loan accounts were classified as NPA in December 2014, and a SARFAESI notice was issued in January 2015. INMA approached various banks, including New India Co-operative Bank, to settle dues. New India Co-operative Bank discovered discrepancies in CIBIL reports, showing an inflated outstanding amount of Rs.32 crores instead of Rs.15 crores. This was due to an error in migrating account numbers. INMA issued a legal notice to the bank and CIBIL. The

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## Issues and analysis

### Issue 1: Whether DRT was within its jurisdiction in entertaining the claim for damages, after finding that …

**Ratio:** The jurisdiction of DRT/DRAT is limited to adjudicating claims related to debts arising

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**Reasoning:** The court reasoned that the object of the RDB Act is to ensure expeditious recovery of

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**Interpretation:** The expression 'damages' in Section 19(8) of the RDB Act should be narrowly

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**Application:** In this case, the claim for damages was founded on tort, arising from the

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## Parties

- **Judges:** K.R.SHR…; MOHAMMED S…
- **Appellants:** M/s.INMA Internati…
- **Respondents:** INMA International…; Indian Overseas…
- **Advocates:** Mr.E.Ompr…; Mr.B.Thilak…; +4 more

## Timeline

- **2012-12-06 — Work order…**: Work order was issued to 1st…
- **2014-12-30 — Loan accounts…**: Loan accounts of 1st…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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