Ms Dhanalakshmi Srinvasan Chari and EDU Trust vs HUDCO on 28 March 2024

ORDER

1. The Original Application was is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 against the defendants’ seeking issuance of a Recovery Certificate for recovery of a sum of Rs.52,64,39,354/- together with interest at the rate of 15.5% per annum with quarterly rests from the date of filing of the OA till the date of realisation along with costs of the application and for sale of schedule mentioned properties.

2. This Ld. Presiding Officer, DRT-I Chennai by its proceedings dated 29.12.2017 has ordered as follows: - “The case is taken up for passing final order. Detailed order is recorded vide separate sheets. In the result: The OA is allowed, with costs for a sum of Rs.52,64,39,354/- together with interest at the rate of 10% p.a. from the date of filing of the OA till date of realisation. It is further ordered that the amount paid by the defendants during the pendency of the OA shall be deducted from the OA claim of Rs.52,64,39.354/- and the applicant shall claim the balance amount only along with interest on the balance sum @10% p.a. Considering the undertaking affidavit filed on 27.11.2017 by the defendants, the Tribunal in terms of Section 27 of RDDB & FI Act, passes the following further order: - That the defendants are granted time till 31.3.2018 for payment of the amount payable as above, subject to the condition that (a) the defendants shall on or before 9.1.2018 make down payment of 25% of the amount payable as per the Recovery Certificate, by crediting the said amount to the loan account of the defendants lying with the .

(b) and the remaining balance outstanding amount shall be discharged by the defendants on or before 31.3.2018 either in parts or in lump sum.

In default of any of the above conditions, the stay of Recovery Proceedings granted upto 31.3.2018 shall stand vacated by the Recovery Officer and the Certificate Creditor can proceed for recovery of the remaining amount of debt due and payable by the Certificate Debtors to the Certificate Creditors, with interest at 14% p.a. on the defaulted amount.” However, in the operativel portion of detailed order of Ld. Presiding Officer, DRT- I dated 29.12.2017 does not quantify the amount for which the Recovery Certificate is to be drawn and the rate of interest that has been awarded, though the same details were given in the order passed by Ld. Presiding Officer, DRT-I Chennai under Section 27 of the RDB Act.

3. It is also seen that as the defendants could not comply with the terms of payment, they filed MA No.12 of 2018 praying the Tribunal to extend the time for repayment of the remaining amount by a period of 12 weeks. Having heard the Ld. Counsels and taking into account the memo dated 5.6.2018 filed by the applicant, this Tribunal vide order dated 12.06.2018 passed the following order: - “Therefore, under the circumstances, the petitioners are granted time till 2.7.2018 for payment of the entire balance amount due and payable as per the final order dated 29.12.2017 as follows: - i) Rs.1 crore shall be paid on or before 22.6.2018 ii) The entire remaining balance amount payable as per the final order dated 29.12.2017 together with interest @14% on the outstanding amount shall be paid on or before 1.7.2018.

In default of any of the above conditions, the petition shall stand dismissed”

4. While so, one of the defendants approached the Hon’ble High Court of Madras by filing W.P. No.15179 of 2018 challenging the order of the Tribunal dated 12.6.2018 made in MA No.12 of 2018 in OA No.98 of 2017 and to quash the same and consequently, direct the 2nd respondent bank to hand over the original title deeds of the properties belonging to the Petitioner Trust.

5. Initially, the Hon’ble High Court of Madras by its order dated 22.6.2018 had granted interim stay of the order of this Tribunal and the same was extended by its order dated 18.07.2018. However, when the case came up for hearing before the Hon’ble High Court on 16.08.2023, and the Hon’ble High Court after recording the submission of the petitioner and the endorsement made in the case bundle disposed of the writ petition granting liberty to the petitioner to approach the Recovery Officer, DRT-II Chennai for appropriate relief, by filing necessary calculation memo with regard to the payment so far paid and thereafter making payment for the outstanding amount, if any.

6. While so, in view of the gazette notification of the Government dated 4.10.2022, the case stood transferred from DRT-I Chennai to this Tribunal and this Tribunal took up the case for hearing on 22.06.2023 and the report of the Registry was called for and the Registry submitted the status of the case and on perusal of the same it was seen that the Recovery Certificate was not issued by DRT-I Chennai pursuant to the order of the Tribunal dated 29.12.2017. Therefore, it has become incumbent on this Tribunal to pass the detailed order and to issue the Recovery Certificate.

7. Heard the Ld. Counsels appearing on behalf of both sides. Perused the records.

8. After hearing the Ld. Counsel appearing on behalf of both sides, taking into account the proceedings and final order dated 29.12.2017 this Tribunal is of the view that following order be passed:

(a) Applicant is permitted to realize a sum of Rs.52,64,39,354/- together with interest at the rate of 10% per annum (simple) from the defendants jointly and severally, from the date of filing of the OA till 31.03.2018 after deducting all the amounts received by them during the pendency of OA till 31.03.2018 and thereafter at the rate of 14% per annum (simple) for the remaining amount of debt due and payable by the defendants to till date of realization in full along with costs.

(b) Applicant is permitted to realize cost of the proceedings and shall file cost memo within 7 days from the date of receipt of the copy of this order.

(c) The Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the above order.

(d) It will be open for the parties to require the Recovery Officer to quantify the remittances, if any, made by the certificate debtor and appropriate the same to the recovery and proceed further in accordance with law and as per the direction of the Hon’ble High Court.

9. A copy of this order be communicated to the parties concerned in terms of Rule 16 of the Debts Recovery Tribunal (Procedure) Rules, 1993. (Dictated to PS, transcribed by him, corrected, signed and pronounced by me in Open Court on this the 28th day of March, 2024) Sd/- (T. RAJESH) PRESIDING OFFICER DRT-II, CHENNAI