PUNJAB & SIND BANK Vs. TEJWANT SINGH

JUDGEMENT

(1.) Issue notice. Sh. Rajendra Singhvi, Advocate accepts notice; Shri N.K. Kaul, learned senior counsel appears on his behalf. The Court heard the counsel for parties finally. The petitioner-bank (hereafter "the bank") is aggrieved by an order of the Debts Recovery Appellate Tribunal (hereafter "the DRAT") allowing an appeal preferred by the respondent (hereafter "the judgment debtor").

(2.) The brief facts are that the bank had initiated proceedings, being Suit No. 2509/1998 before this Court claiming a decree for Rs. 79,61,034/-; the judgment debtors were arrayed as defendants. The suit claimed future interest @ 17.5% in respect of the outstanding in the LAP account and 19% per annum in respect of the outstanding in the ODP account with effect from 27.09.1988. The claim in the suit inter alia was as follows:

(3.) During the pendency of the suit, the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 was brought into force; consequently the proceedings was transferred to the file of the Debts Recovery Tribunal (DRT) and registered as OA 205/1995. The DRT, after considering the materials and documents on the record and submissions of parties, held that the bank had proved its claim and decreed it in full. So far as the interest was concerned, the relevant part of the DRT's order reads as follows: