HIND DRUG DISTRIBUTORS Vs. STATE OF BIHAR

JUDGEMENT

(1.) The present writ petition has been filed for a direction to the respondent Bank for issuing the No Dues Certificate to the petitioners in view of the order dated 21.02.2013 (Annexure-3) passed in SARFAESI Application No. 211 of 2012 by the Debts Recovery Tribunal, Patna and payments made by the petitioners, and to return the original title deeds of the mortgaged properties of the guarantors along with other connected documents; for quashing the entire proceeding registered as O.A. No. 410 of 2015 (State Bank of India SARB Patna Branch Vs. M/S Hind Drug & Distributors and others); and for connected reliefs.

(2.) Learned counsel for the petitioners makes a short submission to the effect that the original loan of Rs. 32,00,000/- was settled in SARFAESI proceedings, culminating in the final demand of Rs. 24,10,587/- by the respondent Bank in its letter dated 06.03.2013 pursuant to the order dated 21.02.2013 passed by the Debts Recovery Tribunal, Patna in SA No. 211/2012 under the SARFAESI proceedings. The petitioners have since made a payment of Rs. 24,30,000/- in the aggregate which has been accepted by the Bank. In that view of the matter, the initiation of proceedings in OA No. 410 of 2015 under the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 ("the RDDBFI Act") for recovery of the entire amount of the same loan of Rs. 32,00,000/- is wholly arbitrary, illegal and unsustainable in law.

(3.) Learned counsel for the respondent Bank, on the other hand, invites attention to the order dated 21.02.2013 passed by the Debts Recovery Tribunal, Patna which required the petitioners to make payment of the amount (later calculated at Rs. 24,10,587/- by the bank as aforesaid) within a period of three months from the date of order whereas the petitioners had made payments from time to time until as late as on 14.03.2016. It is therefore submitted that in view of the petitioners not having fulfilled the conditions of the order passed in SA No. 211 of 2012 and having failed to observe the time limit for payment, the respondent Bank has rightly undertaken steps for recovery under the RDDBFI Act for recovery of the loan amount.