GURMEET SINGH Vs. LIC, JABALPUR

JUDGEMENT

(1.) THEY are heard. This is an appeal preferred by the appellants under Section 20 of the RDDBFI Act, 1993 challenging the judgment passed by the DRT on 29th November, 2010, by which the Tribunal has allowed the original application filed by the Bank and has directed to issue the recovery certificate against the appellants to the tune of Rs. 10,13,858/ - along with cost and future interest @ 16% per annum from 19th December, 2004 till realization. During the pendency of the present appeal, the appellant No. 2 -Mohindra Singh has expired, therefore, on the application, his legal heirs have been substituted. The appellant No. 1 was the borrower and the deceased -appellant No. 2 was the guarantor. The loan was sanctioned by the respondent -LIC for a sum of Rs. 2.50 lacs for construction of the shopping complex for commercial use and the same was sanctioned on the application so moved by the appellant No. 1.

(2.) THE deceased -appellant No. 2 was the guarantor towards the said loan. Since the amount was not paid by the appellants, therefore, the respondent filed an original application for recovery of its dues under Section 19 of the REDDBFI Act, 1993 before the Tribunal.

(3.) THE Tribunal was of the opinion that Article 62 of the Limitation Act for the purpose of filing of the Original Application under Section 19 of the RDDBFI Act, 1993 would apply.