DEEPAK MITRA Vs. UNITED BANK OF INDIA

JUDGEMENT

(1.) This petition, at the instance of a Director of M/s. Mitra Prakashan Ltd., a Company that was incorporated under the Indian Companies Act, 1956 with its Head Office at Allahabad, has filed this petition for quashing the orders dated 17th October, 2011 and 13th February, 2012 passed by the Debts Recovery Appellate Tribunal, Allahabad in the appeal filed by the petitioner under Section 20 of the Recovery of Debts Due to Banks & Financial Institutions Act, 1993 (hereinafter referred to as the 'Act'). The said appeal was filed by the petitioner to assail the order dated 24th July, 2009 passed by the Debts Recovery Tribunal, Allahabad in Original Application No. 109 of 2002 which had been filed by respondent No.1-United Bank of India (hereinafter referred to as the 'Bank') under Section 19 of the Act for payment of the outstanding amount of Rs.3,76,50,871.90/- with interest by the Company and the four Directors of the Company.

(2.) The Debts Recovery Tribunal had allowed the Original Application filed by the Bank by the order dated 24th July, 2009 and issued the recovery certificate for an amount of Rs.3,76,50,871/- with pendente lite and future interest @ 19% per annum with quarterly rest from 30th January, 2011 till the realisation of the amount. The counter-claim filed by the petitioner who was impleaded as defendant No.4 in the Original Application for claiming Rs.35,66,17,673/- with interest was, however, dismissed by the Debts Recovery Tribunal by the said order dated 24th July, 2009.

(3.) Feeling aggrieved by the said order passed by the Debts Recovery Tribunal, the petitioner preferred an appeal before the Debts Recovery Appellate Tribunal, Allahabad (hereinafter referred to as the 'Appellate Tribunal') under Section 20 of the Act and with the appeal an application was also filed by the petitioner under Section 21 of the Act for waiver of the amount required to be deposited as the said Section stipulates that such appeal shall not be entertained by the Appellate Tribunal unless the appellant has deposited 75% of the debt so due from him as determined by the Debts Recovery Tribunal under Section 19 of the Act.