INDIAN BANK Vs. P VIJAYAKUMARI

JUDGEMENT

(1.) THE bank has filed this writ petition to set aside the order of the Debt Recovery Appellate Tribunal extending the time given to the respondents 1 and 2 to pay the bank as per the award of the Lok Adalat dated 30. 11. 2006 in M. A. No. 203 of 2006.

(2.) THE facts of the case for disposal of the writ petition is as follows:- The first respondent, who is the proprietrix of Sakthi Industries availed loans from the petitioner bank for four different purposes, viz. , (1) Open Cash Credit; (2) Supply Bills Purchase; (3) Medium Term Loan (building) and (4) Medium Term Loan (machinery) with interest at 20. 25%. There was an hypothecation agreement in respect of movables, plant and machinery and the first respondent also deposited the documents of title deeds of properties by way of equitable mortgage. The loan amount, according to the bank, was not properly settled and therefore, notice was issued for recovery of the same and on the failure on the part of the first respondent to settle the claim, Original Application No. 450 of 2000 was filed by the bank against the first respondent Proprietrix of the company and V. Padmanabhan, the guarantor, the second respondent for recovery of a sum of Rs. 62,96,582. 68 with interest at 19. 8% per annum with quarterly rests from the date of application till date of realisation. The other reliefs sought for are as follows:-

(3.) THE petitioner bank and the respondents 1 and 2 settled their claim, before the Lok Adalat on 10. 9. 2004 and an Award was passed by the Lok Adalat as follows:-