INDIAN BANK Vs. DEBTS RECOVERY TRIBUNAL

JUDGEMENT

(1.) THIS Writ Petition is directed against the order dated 15.06.2006 in R.A.No.51/2005 on the file of the Debts Recovery Appellate Tribunal, Chennai directing the Bank to accept the amount as per one time settlement in full and final satisfaction of their claim against respondents 2 and 3.

(2.) THE second respondent took a loan from the Indian Bank, Kadambathur Branch [hereinafter referred to as 'the Bank'] in the year 1989. It was essentially a poultry loan given under the Agricultural Sector. THE third respondent stood as the guarantor. Since the Principal Debtor failed to pay the installments as per the terms of contract, the Bank initiated action for recovery. THE Bank filed O.S.No.335/1992 before the Subordinate Court, Tiruvallur, which was later transferred and renumbered as T.A.No.958/1997 before the Debt Recovery Tribunal-I Chennai.

(3.) THE second Respondent in his counter affidavit contended that the Writ Petition is liable to be dismissed on the ground of delay and laches. According to the second Respondent, subsequent to the appellate Decree, a sum of Rs.19,000/- was paid in full and final satisfaction of the claim as per the Appellate Decree and the same was accepted by the Bank without protest. Subsequently, the mortgaged property was sold in favour of a third party on the basis of Sale Deed dated 12.08.2008 and it was registered as Doc.No.11614/2008 before the Sub Registrar, Sri Perumbadur. It was long thereafter, the Bank has filed the present Writ Petition. THErefore, the second Respondent prayed for dismissal of the Writ Petition on the ground of delay and laches.