STATE BANK OF INDIA vs P.K NIGELESH on 3 November 2018

FINAL ORDER

1. This is an application presented on 31.12.2016 under S.31A of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 – hereinafter referred to as „the Act‟ – by the applicant/decree holder bank in OS No.76/2013 of the Sub Court, Chavakkad for issuing Recovery Certificate in terms of the decree dated 21.11.2013 for recovery of the amount due thereunder.

2. The defendants were duly served with summons and have filed proof of service on 09.05.2016. The defendants neither appeared nor were represented by counsel to contest the case. Since there was no appearance for the defendants nor were represented by any counsel, the defendants were placed exparte on 21.08.2017.

3. The applicant bank had filed OS.No.76/2013 before the Sub Court, Chavakkad for recovery of amount due and obtained a decree dated 21.11.2013 allowing it to recover the sum of Rs.9,73,301/- with interest thereon @12%p.a from 25.05.2012 to 21.11.2013 and thereafter @ 6%p.a till realization and also its costs from the 1stdefendant and by sale of the plaint schedule property.

4. According to the applicant bank, the defendants did not pay the amount due under the decree, and the applicant bank is entitled to get the total sum of Rs.14,53,512/- [Rupees Fourteen Lakhs Fifty three thousand Five hundred and Twelve only] as on 31.12.2015. The prayer is to issue Recovery Certificate for recovery of the aforesaid amount together with future interest and costs from the 1st defendantand by sale of the decree schedule property.

5. In view S.31A incorporated by way of amendment made to the Act as per Act 1 of 2000, which came into force on 17.01.2000, deals with issuance of Recovery Certificate in respect of decrees for recovery of debt passed by any court prior to the commencement of Act 1 of 2000 and which remained unexecuted, I am of the view that S.31A r/w Ss.1(4), 17(1) and 18 of the Act bars jurisdiction of civil court to recover the amount of Rs.10 lakhs and above due to a bank or a financial institution or a consortium of banks or financial institutions under a decree passed by any court subsequent to the commencement of Act 1 of 2000, and this by necessary implication empowers the Tribunal to issue Recovery Certificate for recovery of amount due under such a decree also (i.e., the decree passed on or after 17.01.2000). Any other interpretation will make S.31A of the Act redundant and a decree holder bank, which obtained a decree subsequent to the commencement of Act 1 of 2000 for recovery of amount in excess of Rs.10 lakhs, would be unable to approach for recovery of such amount either before the Tribunal or the civil court in view of the bar under Ss.17(1) and 18 r/w S.1(4) of the Act.

6. Thus, in view of the above, the applicant bank is entitled to get a final order directing to issue Recovery Certificate on the following lines:- “In the result, it is ordered to issue Recovery Certificate in terms of the decree dated 21.11.2013 in OS No.76/2013 of the Sub Court, Thiruvananthapuram for recovery and payment to the applicant bank,the sum of Rs.14,53,512/- (Rupees Fourteen

Lakhs Fifty Three thousand Five hundred and Twelve only) together with future interest on the sum of Rs.9,73,301/- [Rupees Nine Lakhs Seventy three thousand Three hundred and one only] @6% per annum from 21.11.2013 till realization from the 1stdefendant and by sale of decree schedule properties and also the cost of this proceedings from the 1st defendant”

7. Schedule to the decree shall be part and parcel of the final order of the OA and Recovery Certificate of present OA;

8. Communicate copy of this order to both parties as provided in R.16 r/w R.2(c) of the Debts Recovery Tribunal (Procedure) Rules, 1993.

[Dictated to the steno, transcribed by her, corrected by me and then pronounced in the open court on this the 03rd day of November, 2018]

(S.V.GOWRAMMA)

Presiding Officer

APPENDIX Sl.No. Date Description of Document

21.11.2013 Certified copy of the judgment in O.S No.76/13 of the Sub Court, Chavakkad.

21.11.2013 Certified copy of the decree in O.S No. 76/13 of the Sub Court, Chavakkad

[PRESIDING OFFICER]

A SCHEDULE PROPERTY

District

: Thrissur

Sub-District : Kottappadi

Taluk

: Chavakkad

Firka

: Chavakkad

Village

: Guruvayur

Desom

: Guruvayur

Jenm

: Tenure

Re.Sy. No. : 99/7 (Old Sy.No.99/18 part)

Extent

: 6.25 Cents BOUNDARIES

East : Passage

North : Property of Raman Nair & others West : Property of Jayakrishnan

South : Property of Poosagam DESCRIPTION OF PROPERTY

6.25 Cents in Re.Sy.No.99/7(Old Sy.No.99/18 part) of Guruvayoor Village comprised in Doct.No.341/2004 dated 01.03.2004 of the office of the S.R. Kottappadi.

B SCHEDULE PROPERTY

District

: Thrissur

Sub-District : Kottappadi

Taluk

: Chavakkad

Firka

: Chavakkad

Village

: Guruvayur

Desom

: Guruvayur

Jenm

: Tenure

Re.Sy. No. : 99/7 (Old Sy.No.99/18 part)

Extent

: 6.25 Cents

BOUNDARIES

East : Passage

North : Property of Raman Nair & others West : Property of Krishnan

South : Property of Poosagam DESCRIPTION OF PROPERTY

355/2720 Sq.ft of undivided and inseparable share in the A Schedule property.

C SCHEDULE PROPERTY

District

: Thrissur

Sub-District : Kottappadi

Taluk

: Chavakkad

Firka

: Chavakkad

Village

: Guruvayur

Desom

: Guruvayur

Jenm

: Tenure

Re.Sy. No. : 99/7 (Old Sy.No.99/18 part)

Extent

: 6.25 Cents BOUNDARIES

East : Passage

North : Property of Raman Nair & others West : Property of Jayakrishnan

South : Property of Poosagam DESCRIPTION OF PROPERTY

Flat No.G1 with plinth area of 640 Sq.ft on the Ground floor of the building constructed in A Schedule property

[PRESIDING OFFICER]

IN THE DEBTS RECOVERY TRIBUNAL-II, KERALA AT ERNAKULAM Dated this the 03rdday of November, 2018 Present: S.V.Gowramma, B.A., LL.B Presiding Officer T.A 646/2016 [OA.No.62/2016] Between

State Bank of India

(Erstwhile SBT), …Applicant And

Shri. P.K.Nigelesh,

& others

…Defendants

FINAL ORDER