NEERAJ SYAL Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) These two petitions which raise similar questions concerning the scope and powers of the Debt Recovery Tribunal ("DRT") and the Debt Recovery Appellate Tribunal ("DRAT") are being disposed of by this common judgement.

(2.) The facts in W.P.(C) No. 414/2019 are that proceedings under the Recovery of Debts and Bankruptcy Act, 1993 ("RDB Act") were initiated before the DRT by the State Bank of Mysore (now State Bank of India) (hereafter "Bank") against the legal representatives (LRs) of the original borrower late Mr. K. B. Syal by way of O.A. No. 22/2006. This was disposed of by an order dated 10th February, 2011 allowing the Bank"s claim in the sum of Rs.30,88,494/- together with simple interest at 10% p.a. from the date of declaration of non-performing asset till full realisation. Consequent thereto, Recovery Certificate (RC) No. 166/2013 was issued. The said recovery proceedings are stated to be pending.

(3.) While the above RC was pending before the Recovery Officer, DRT-III, a settlement scheme was announced by the Bank. Pursuant to the settlement the Bank issued a letter dated 14th November, 2018 to the borrower firm i.e. M/s. Richies Fashion, the proprietor of which was Mrs. Rashmi Syal.