FEDERAL BANK vs ANTONY GEORGE on 20 February 2018

FINAL ORDER

1. The applicant bank has filed the above application on 23.03.2016 under S.31A of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 – hereinafter referred to as ‘the Act’ – as decree holder in OS No.130/2007 of the Sub Court, Nedumangad for issuing Recovery Certificate in terms of the decree dated 13.08.2009 for recovery of the amount due thereunder.

2. The defendants were duly served with summons and they filed their vakalath on 31.05.2016. Though Vakalath is filed by defendants, they did not file written statement within the time

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stipulated. Hence chance of filing written statement closed on 14.03.2017.

3. The applicant bank had filed OS.No.130/2007 before the Sub Court, Nedumangad for recovery of amount due and obtained decree dated 13.08.2009, which was subsequently amended as per order in IA.No.739/2011 dated 28.07.2011 and IA.No.746/2013 dated 28.11.2015 allowing it to recover the sum of Rs.7,67,653/- with interest thereon @14.5% p.a. and Rs.81,399/- with interest thereon @ 14.5% p.a and Rs.42,602/- with interest @ 9% p.a till realization and also its costs amounting to Rs.1,02,503/- from the defendants 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 hence they are entitled for a recovery of a sum of Rs.18,76,158/- (Rupees Eighteen lakhs seventy six thousand one hundred and fifty eight only] as on 23.03.2016. The prayer is to issue Recovery Certificate for recovery of the outstanding amount due as per decree together with future interest from the defendants and by sale of the decree schedule property.

5. The applicant bank in the OA has claimed a costs of Rs.1,03,163/-. However, on verification of decree it is found that the Sub Court, Nedumangad in OS No.130/2007 had allowed the cost of Rs.1,02,503/- only. Hence the applicant is entitled only Rs.1,02,503/- as costs.

6. 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

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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.

7. Therefore, in the instant case though the decree had been passed after 17.01.2000, that is on 13.08.2009, in view of S.31A r/w Ss.1(4), 17(1) and 18 of the Act, as discussed above, I am of the view that Recovery Certificate has to be issued to recover under the decree on hand the sum of Rs.15,47,937/-[Rupees Fifteen lakhs forty seven thousand nine hundred and thirty seven only] together with future interest on the sum of Rs.7,67,653/- [Rupees Seven lakhs sixty seven thousand six hundred and fifty thee only] @14.5% per annum from 24.03.2016 till realization; the sum of Rs.1,62,440/- [Rupees One lakh sixty two thousand four hundred and forty only] together with future interest on the sum of Rs.81,399/- [Rupees Eighty one

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thousand three hundred and ninety nine only] @ 14.5% per annum from 24.03.2016 till realization and the sum Rs.62,618/- [Rupees Sixty two thousand six hundred and eighteen only] together with future interest on the sum Rs.42,602/- [Rupees Forty two thousand six hundred and two only] @ 9% per annum from 24.03.2016 till realization from the defendants along with the costs of Rs.1,02,503/- [Rupees One lakh two thousand five hundred and three only] awarded as per the decree dated 13.08.2009 together with costs of this proceeding from the defendants and by sale of decree schedule property.

8. Thus, in view of the above discussion, 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 13.08.2009 in OS No.130/2007 of the Sub Court, Nedumangad for recovery and payment to the applicant bank, (a) the sum of Rs.15,47,937/-[Rupees Fifteen lakhs forty seven thousand nine hundred and thirty seven only] together with future interest on the sum of Rs.7,67,653/- [Rupees Seven lakhs sixty seven thousand six hundred and fifty thee only] @14.5% per annum from 24.03.2016 till realization from the defendants and by sale of decree schedule property; (b) the sum of Rs.1,62,440/- [Rupees One lakh sixty two thousand four hundred and forty only] together with future interest on the sum of Rs.81,399/- [Rupees Eighty one thousand three hundred

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and ninety nine only] @ 14.5% per annum from 24.03.2016 till realization from the defendants and by sale of decree schedule property;

(c) the sum Rs.62,618/- [Rupees Sixty two thousand six hundred and eighteen only] together with future interest on the sum Rs.42,602/- [Rupees Forty two thousand six hundred and two only] @ 9% per annum from 24.03.2016 to till realization from the defendants and by sale of decree schedule property; and (d) the costs of Rs.1,02,503/- [Rupees One lakh two thousand five hundred and three only] awarded as per the decree dated 13.08.2009 together with costs of this proceeding from the defendants and by sale of decree schedule property.

9. The decree schedule property shall be appended to this order.

10. 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 him, corrected by me and then pronounced in the open court on this the 20th day of February, 2018]

(S.V.GOWRAMMA)

TA.No.94/2016 (OA.No.292/2016)

[PRESIDING OFFICER]

IN THE DEBTS RECOVERY TRIBUNAL-II, KERALA AT ERNAKULAM

Dated this the 20th day of February, 2018

TA.No.94/2016 (OA.No.292/2016) Between The Federal Bank Ltd., Nedumangad Branch. …Applicant And

Antony George & another.

...Defendants

FINAL ORDER

TA.No.94/2016 (OA.No.292/2016)

TA.No.94/2016 (OA.No.292/2016)

TA.No.94/2016 (OA.No.292/2016)

[Presiding Officer]

IN THE DEBTS RECOVERY TRIBUNAL-II, KERALA AT ERNAKULAM

Dated this the 15th day of January, 2018

OA.No.230/2017 Between Union Bank of India, represented by its Branch Manager. …Applicant And

S.Suresh & another

...Defendants

FINAL ORDER