PUNJAB & SIND BANK Vs. RAMANJIT KAUR

JUDGEMENT

(1.) THIS writ petition questions the legality of the order dated 26.09.2014 passed by Debts Recovery Appellate Tribunal (hereinafter referred to as "the DRAT") in appeal No. 308/2011 arising out of OA No. 276/1996 (Delhi -II) whereby relief in the form of reduced rate of pendente lite and future interest has been granted on considerations of equity, fairness and reasonableness to the respondents No. 1 and 5 (hereinafter "the contesting respondents").

(2.) THE respondents No. 2 to 4 did not appear or contest before the DRT or DRAT. The issues raised here essentially pertain to the liability of the contesting respondents. Therefore, notice to respondents No. 2, 3 and 4 is dispensed with.

(3.) M /s Skipper Builders Pvt. Ltd. was the principal borrower; it requested and was granted ODP limit to the tune of Rs. 6.50 Lacs. The contesting respondents were amongst the guarantors/mortgagors. Property No. 6/13, Vasant Vihar, New Delhi and No. C -148, Naraina Industrial Area, Ring Road, New Delhi were accepted as security by way of equitable mortgage. The borrower became irregular in availing credit facility. It approached the bank for release of the afore -mentioned mortgaged properties and in their lieu offered property No. 8/25, West Patel Nagar, New Delhi as security. The ODP limit was reduced and converted into term loan of Rs. 4 Lacs. On 03.01.1979, a sum of Rs. 4 Lacs was credited in the earlier ODP account which was running irregular by debiting the new LAP account. The borrowing company executed various documents on 03.01.1979 at which stage the first respondent with another (second respondent) executed guarantee agreements. In spite of various communications, the borrowing company did not pay the amount with interest accrued thereon. On 19.12.1981, debit balance of Rs. 6,85,791.80 was acknowledged and fresh documents executed. An application was eventually filed for recovery of Rs. 19,41,696/ - outstanding in the ODP account along with Rs. 24,50,965/ - outstanding on debit sought in the LAP account.