R NARAYANAMOORTHY Vs. REGISTRAR DEBT RECOVERY

JUDGEMENT

(1.) THE present writ petition is filed against the order of the Debt Recovery Appellate Tribunal confirming the order of the Debt Recovery Tribunal in refusing to grant permission to the borrower to cross-examine the officer of the Life Insurance Corporation, who has filed proof affidavit in respect of the claim made in O.A.No.618 of 1997.

(2.) ADMITTEDLY, the third respondent/Life Insurance Corporation has filed the original application for recovery of amount stated to have been borrowed by the petitioner. The dispute is relating to the quantum of interest payable in respect of the borrowed amount. The officer of the Life Insurance Corporation has filed a proof affidavit claiming the amount of interest at 17= %. It was in those circumstances, the petitioner has filed an interlocutory application in I.A.No.128 of 2008 seeking permission to cross-examine the said officer on the ground that there has been some discrepancies in respect of the interest, as it is seen in the proposal given by the Bank while granting loan, which also includes the deposit of title deeds. It is no doubt true that at the time of obtaining the loan, which is stated to be an extent of Rs.8.00 lakhs, certain promissory notes have been executed by the petitioner and according to the learned counsel appearing for the Life Insurance Corporation, the amount has been advanced periodically as and when the progress in construction is shown.

(3.) IT is the contention of the learned Senior Counsel for the petitioner that the rejection of the plea made by the petitioner for cross-examination is not on any sound reasoning. On the other hand, the application itself has been filed for cross-examination on the admitted situation that there has been ambiguity in respect of the quantum of interest and that aspect has not been properly appreciated by the Tribunal as well as the Appellate Authority. In this regard, it is relevant to extract Rule 12(6) of Debts Recovery Tribunal (Procedure) Rules, 1993, which is as follows:-