LAWS(PAT)-2017-11-171

CENTRAL BANK OF INDIA Vs. KAILASH ART INTERNATIONAL

Decided On November 21, 2017
CENTRAL BANK OF INDIA Appellant
V/S
Kailash Art International Respondents

JUDGEMENT

(1.) Some fine points of the civil laws, as contained in the Code of Civil Procedure, have come up for consideration in the present Letters Patent Appeal.

(2.) Central Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (hereinafter referred to as 'the Bank') has preferred the present appeal questioning the judgment dated 11.12.2013 passed by a learned Single Judge of this Court in CWJC No. 1665/2009. The learned Single Judge has allowed the Writ Application and thereby accepted the prayer of the petitioners to quash the order dated 31.08.2009 passed by the Presiding Officer, Debts Recovery Tribunal, Patna in M.A.No. 07/2009 as also the order dated 19.04.2007 passed in OA (Ex.) Case No. 15/2006 and the resultant certificate issued by the Debts Recovery Tribunal, Patna in the said execution case for realization of a sum of Rs. 18,99,760.69 being the total of (i) decreed amount of Rs. 1,49,628.89 plus (ii) interest @ 14% per annum with quarterly rests from 01.02.1998 to 31.12.2005 amounting to Rs. 17,27,177.80 plus (iii) amount of cost awarded with subsequently incurred Rs. 22,954.00 with further interest @ 14% per annum with quarterly rests from 01.01.2006 till its realization against the respondents judgment debtors from their person and properties.

(3.) It is an admitted fact that on 07.06.1983 Danapur Branch of the Bank sanctioned a Cash Credit Loan Limit of Rs. 70,000/- in favour of M/s Kailash Art International (respondent no. 1), who happened to be a sole proprietorship firm owned by one Saryug Prasad Singh (respondent no. 2). Father of the respondent no. 2 (since deceased) and Smt. Savitri Devi (respondent no. 3) stood guarantors to the said financial assistance provided by the Bank. Default in repayment led to filing of a Title Mortgage Suit bearing no. 572/1987 in the court of learned Subordinate Judge-III, Danapur claiming Rs. 1,49,628.89 with interest and cost. The defendants in the suit appeared but did not contest the same leading to passing of an ex parte judgment and decree dated 21.04.1995 by the learned court.