CENTRAL BANK OF INDIA vs THANKAPPAN ACHARI on 19 May 2018

**FINAL ORDER**

The present application is filed on 17.03.2016 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 bank. The applicant has filed the OA for issuance of Recovery Certificate and for recovery of the amount due in terms of the common award dated 06.12.2009 in PLP.13515/2009 and PLP 13516/2009 passed by the Lok Adalat which was organised by the Thiruvananthapuram District Legal Services Authority.

2. The applicant is Central Bank of India, a nationalized bank, a body corporate incorporated under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 with head office at Bombay and carrying business of banking at various places, including at Thiruvananthapuram. The Chief Manager of its main branch is duly authorized to verify, sign and file this application on behalf of the applicant bank.

3. The defendant is a sole proprietor of a Small Scale Industry unit, namely M/s.Lakshmi Design Centre.

4. It is the case of the applicant that the defendant had approached the applicant bank and submitted a loan application for a term loan of Rs.7,50,000/- on 24.03.2006 and cash credit to the limit of Rs.6,25,000/- for his SSI unit. After executing various documents applicant bank sanctioned the aforesaid loans to the defendant. As there was no proper repayment of monthly installments towards the loan accounts, the applicant declared the loan accounts of the defendant as NPA and issued a notice demanding the defendant to repay the amount with accrued interest.

5. As defendant did not clear the outstanding inspite of demand notice applicant filed PLP.No.13515/2009 and PLP.No.13516/2009 against the defendant before the Thiruvananthapuram District Legal Service Authority for recovery of a sum of Rs.9,04,986/- and Rs.9,10,597/- together with contractual rate of interest. Thereafter, the matter was referred to the Lok Adalath on 06.12.2009, organized by the Thiruvananthapuram District Legal Service Authority and defendant had agreed to settle the entire liability for Rs.16,00,000/- with the conditions stipulated in the common award passed by the Lok Adalath. As the defendant did not pay any amount as per the common award, the applicant was constrained to file the OA for recovery of the amount due as per common award passed in Lok Adalath dated 06.12.2009 in Lok Adalath case Nos.PLP.13515/2009

and PLP.13516/2009. It is stated that as on the date of filing the OA an amount of Rs.24,03,548/- is due from the defendant.

6. After filing of the OA, the applicant has taken out summons on defendant as directed by the Tribunal and filed proof of service on 23.05.2016. The summons issued to the defendant was duly served on him and service of summons was completed as per the regulations. Insptie, of service of summons defendant neither appeared nor was he represented and thus he was declared *exparte* on 05.04.2017.

7. 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 common award dated 06.12.2009 in Lok Adalath case No.PLP.13515/2009 and PLP.No.13516/2009 of the District Legal Service Authority, Thiruvananthapuram for recovery and payment to the applicant bank, the sum of Rs.24,03,548/- (Rupees Twenty four lakhs three thousand five hundred and forty eight only) together with future interest @ 8% per annum from 16.03.2016 till realisation and also the costs of the applicant bank in this proceedings, from the defendant.

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 him, corrected by me and then pronounced in the open court on this the 19^th day of May, 2018]

**APPENDIX**

Witness for Applicant: Nil

Witness for Defendant(s): Nil

**Exhibits on the part of the applicant**

<table border="1"> <thead> <tr> <th><u>Ext.No.</u></th> <th><u>Date</u></th> <th><u>Particulars of documents</u></th> </tr> </thead> <tbody> <tr> <td>A1</td> <td>06.12.2009</td> <td>Common award dated 06.12.2009 in Lok Adalath case No.PLP.13515/2009 and PLP.No.13516/2009 of the District Legal Service Authority, Thiruvananthapuram.</td> </tr> </tbody> </table>

 A white rectangular redaction box is placed over the middle-right section of the document, partially obscuring the text.

The present application is for the Recovery of Debt due to Bank from Financial Institutions Act, 1993 - hereinafter referred to as 'the Act' by the applicant bank. The applicant has filed the OA for issuance of Recovery Certificate and the Recovery of the amount due in terms of the common award dated 06.12.2009 in PLP.13515/2009 and PLP.13516/2009 passed by the Lok Adalat which was organised by the Thiruvananthapuram District Legal Services Authority.

2. The applicant is Control Bank of India, a public limited company, a body corporate incorporated under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 with head office at Bombay and carrying business of banking at various places, including at Thiruvananthapuram. The Chief Manager of its main branch is duly **IN THE DEBTS RECOVERY TRIBUNAL-2, KERALA AT ERNAKULAM**

Dated this the 19^th day of May, 2018

**Present: S.V.Gowramma, B.A., LL.B** **Presiding Officer**

TA.No.1400/2016 (OA.No.257/2016)

**Between**

Central Bank of India, Represented by its Chief Manager, Main Branch, Thiruvananthapuram District. ...Applicant **And**

Thankappan Achari ...Defendant

**FINAL ORDER**

[PRESIDING OFFICER]