CHAND NARAIN LANGAR Vs. PUNJAB AND SINDH BANK

JUDGEMENT

(1.) AS both the Writ Petitions have been preferred by the common petitioner against the common respondents and arise out of the orders passed by the Debts Recovery Appellate Tribunal, Chennai (for short, 'appellate Tribunal') in a common proceedings, they were heard together and disposed of by this common order.

(2.) THE petitioner preferred an appeal before the Appellate Tribunal against the decree passed by the Debts Recovery Tribunal (for short, 'tribunal'), Hyderabad. In the said appeal, he preferred a petition under proviso to Section 21 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as 'the Act') for waiver of the amount as required to be deposited under Section 21 of the Act. The Appellate Tribunal, Chennai, vide the impugned order dated 10. 4. 2007, directed the petitioner to deposit a sum of Rupees One Crore only, with the first respondent-Bank in instalments, i. e. Rs. 25 lakhs on or before 16. 4. 2007 and the balance Rs. 75 lakhs in three equal instalments at Rs. 25 lakhs each, on 16. 5. 2007, 16. 6. 2007 and 16. 7. 2007. The conditional interim order of stay was passed, subject to the payment of the aforesaid amounts and on being failure to pay the first instalment on or before 16. 4. 2007, the Bank was given liberty to proceed against him for realisation of the amount. W. P. No. 16069 of 2007 had been preferred by the petitioner against the said order dated 10. 4. 2007.

(3.) LEARNED counsel for the petitioner placed relevant facts to suggest that the petitioner was justified in claiming complete waiver of the amount for hearing of the appeal, in view of the undue hardship faced by him. The following facts were highlighted: according to the petitioner, as the respondents 2 to 5 who availed the credit facility of Rs. 65 lakhs, out of which, a margin money was retained by the first respondent-Punjab and Sindh Bank; the credit facility was for the project of making the Voter's Identity Card for the Election Commission of India (for short, 'eci') meant for the people of Girdhi (in the State of Jharkhand) and Samastipur Constituencies (in the State of Bihar), which were the constituencies of Bihar; the Electronic System Punjab Limited, (for short 'espl'), Mohali, now merged with Electronic Corporation of Punjab Limited, got the order from the ECI and in turn, they placed the order on the principal borrower, namely M/s. S. R. Imaging System, the second respondent herein, a partnership firm. The Election Cards were delivered to ESPL in Bihar. In general terms of the Bank agreement, the Bills ought to have been routed through the Bank, but the ESPL did not route the Bills through the Bank, resulting in the non-receipt of proceeds by the Bank in the said transaction. With such a conduct of the ESPL, the Bank and the principal borrower, according to the petitioner, conspired, which calls for interference.