A K SINHA Vs. CANARA BANK

JUDGEMENT

(1.) The petitioners have filed the present writ petition under Articles 226/227 of the Constitution of India for quashing the order dated 4.7.2011 (Anneuxre P-1) passed by the Debt Recovery Appellate Tribunal, New Delhi (hereinafter called as "the DRAT") whereby the petitioners have been directed to deposit 50% of the amount of recovery certificate and with a further prayer for issuance of writ in the nature of Mandamus directing the DRAT to consider and decide the appeal filed by the petitioners against the order dated 18.6.2003 passed by the Debt Recovery Tribunal, Chandigarh (hereinafter called "the Tribunal").

(2.) From a perusal of the file, it would show that vide order dated 18.6.2003 recovery certificate was issued in favour of the respondent bank for a sum of Rs. 1,39,31,294/- alongwith pendente lite and future interest with quarterly rests from the date of filing of the case till its realisation under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter called as "the Act" ). The petitioners preferred an appeal before the the DRAT against the said order which was dismissed in default on 20.2.2006 and application for restoration of the appeal was dismissed on 24.12.2009 as it had refused to condone the delay. The petitioners had thereafter preferred Civil Writ Petition No.20258 of 2010 before this Court which was accepted on 12.1.2011 and the case was remanded to the DRAT to consider whether there was any ground made out for waiving or modifying the deposit of the decretal amount before the appeal of the petitioner could be heard on merits by affording an opportunity to the petitioner-company to deposit Rs. 20 lacs within a period of 30 days. It was also clarified that no direction for hearing the appeal on merits were being issued therein. It was further provided that in case the amount was not deposited, the appeal was liable to be dismissed. In pursuance of the order of this court, the DRAT admitted the appeal on 18.2.2011 subject to the petitioner's deposit of 75% of the principal amount in the sum of Rs. 1,39,31,294/- minus pendente lite and future interest within four weeks. The petitioners were also entitled to adjust the amount of payment made after the certificate was issued including Rs. 20 lacs paid as per the order passed by this Court. Aggrieved against the said order, the petitioners again approached this Court by filing Civil Writ Petition No.3987 of 2011. This Court vide order dated 14.3.2011 permitted the petitioners to withdraw the writ petition and to move a review application before the DRAT. Resultantly, the petitioners filed review application whereby they sought complete waiver of the requirement of pre-deposit in terms of provisions of Section 21 of the Act. The said application was opposed by the bank. The DRAT thereafter vide order dated 4.7.2011 allowed the review application and reduced the pre-deposit of amount to 50% of the principal amount and also adjusted Rs. 20 lacs which had been deposited in pursuance of the order of this Court. The amount was to be deposited within four weeks failing which the stay granted in their favour would stand vacated and bank could proceed against the petitioners as per law. Resultantly the present writ petition came to be filed.

(3.) It is pertinent to mention here that the bank also filed Civil Writ Petition No.20871 of 2011 challenging the same order which has been dismissed as not pressed.