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P.K.Kerala Varma vs State Bank Of India
2023 Latest Caselaw 7744 Mad

Citation : 2023 Latest Caselaw 7744 Mad
Judgement Date : 6 July, 2023

Madras High Court
P.K.Kerala Varma vs State Bank Of India on 6 July, 2023
                                                                                   WP No.8608 of 2023

                                      IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                       DATED:   06.07.2023

                                                              CORAM :

                            THE HON'BLE MR.SANJAY V.GANGAPURWALA, CHIEF JUSTICE
                                                                AND
                                        THE HON'BLE MR.JUSTICE P.D.AUDIKESAVALU
                                                   WP No.8608 of 2023
                                             and WMP Nos.8776 and 8783 of 2023

                     P.K.Kerala Varma                                              .. Petitioner

                                                          versus



                     State Bank of India,
                     Bank Road,
                     Kozhikode-673 001.                                            .. Respondent



                     Prayer: Petition filed under Article 226 of the Constitution of India for
                     issuance of a Writ of Certiorari to call for the records relating to the
                     order dated 09.03.2023 passed in I.A.No.101 of 2023 in AIR No.101
                     of 2023 by the Debt Recovery Appellate Tribunal, Chennai and quash
                     the same.



                                  For the Petitioner             :      Mr.Anil Relwani

                                  For the Respondent      :      Mr.M.L.Ganesh
                                                                 Stdg. Counsel

                                                              *****


                     Page 1 of 6


https://www.mhc.tn.gov.in/judis
                                                                               WP No.8608 of 2023

                                                          ORDER

(Order of the Court was made by The Hon'ble Chief Justice)

We have heard Mr.Anil Relwani, learned counsel for the

petitioner and Mr.M.L.Ganesh, learned counsel for the respondent

bank.

2. The learned counsel for the petitioner submits that the

petitioner had filed an application before the Recovery Officer calling

for the details of the amount deposited in the account of the principal

borrower. The application was partly allowed. The same was

challenged by the bank before the Presiding Officer, Debts Recovery

Tribunal (DRT). The Presiding Officer, DRT set aside the said order

on the ground that the Recovery Officer cannot sit over the recovery

certificate already issued and remitted the matter to the Recovery

Officer. The Recovery Officer, thereafter, rejected the application of

the present petitioner. The petitioner filed an appeal before the

Presiding Officer, Debts Recovery Tribunal. The said appeal is

dismissed. Aggrieved thereby, the petitioner filed an appeal before

the Debt Recovery Appellate Tribunal (DRAT). The DRAT directed the

petitioner to deposit a sum of Rs.28,86,597/-. According to the

https://www.mhc.tn.gov.in/judis WP No.8608 of 2023

learned counsel for the petitioner, when the appeal filed before the

DRAT is not against any order adjudicating the claim, the DRAT

cannot direct pre-deposit. Reliance is placed on the judgment of a

Division Bench of this Court dated 11.04.2019 passed in C.R.P. (NPD)

No.1492 of 2017 (Sree Jeya Soundharam Textile Mills Pvt. Ltd.

vs. Canara Bank and Others) with other matters.

3. According to the learned counsel for the bank, the amount

outstanding against the principal borrower is more than Rs.82.95

crore as in the year 2013, whereas the amount outstanding against

the petitioner is Rs.1.20 crore and odd. However, the petitioner is

directed to deposit only Rs.20 lakhs by the DRAT.

4. The contention of the petitioner certainly could have been

considered more particularly in view of the judgment of the Division

Bench of this Court dated 11.04.2019 referred to above. However, it

also needs to be considered that independent proceedings were filed

against the present petitioner for recovery. The same was decreed to

the tune of Rs.20 lakhs with interest at the rate of 15.5% p.a. The

said decree was of the year 2001. Now, the amount outstanding as

per the decree against the present petitioner is Rs.1.20 crore and

https://www.mhc.tn.gov.in/judis WP No.8608 of 2023

odd. The petitioner had filed an appeal against the adjudicated

amount before the DRAT. The DRAT directed the present petitioner to

deposit an amount of Rs.20 lakhs. The petitioner did not deposit the

same; on the contrary, challenged the same before this Court by

filing W.P.No.16041 of 2002. The Division Bench of this Court under

order dated 20.06.2007 dismissed the same. The petitioner did not

comply with the order of depositing of Rs.20 lakhs, which order had

become final, inter alia, the appeal came to be dismissed for non-

deposit of the amount.

5. The proceedings of the petitioner do not appear to be

bonafide. The same is only to wriggle out of the liability and to

prolong and protract the proceedings. As stated by the bank, the

amount due from the principal borrower is more than Rs.82 crores in

the year 2013. However, as far as the petitioner is concerned, as

independent proceedings were filed and the liability of the petitioner

is now restricted to Rs.20 lakhs with interest at 15.5% p.a. from the

year 2001, the petitioner certainly ought to have complied the earlier

order passed by the DRAT and confirmed by this Court. Today also,

the DRAT has not even directed the petitioner to deposit 25% of the

amount outstanding as on date.

https://www.mhc.tn.gov.in/judis WP No.8608 of 2023

6. As the conduct of the petitioner does not appear to be bona

fide, we are not inclined to entertain the writ petition. No farthing has

been deposited by the petitioner though the order of pre-deposit in

the appeal filed by the petitioner earlier was passed on or about

March, 2002. Even after 20 years, the petitioner is now directed to

deposit only Rs.28 lakhs and odd. In view of the factual matrix, we

are not inclined to entertain the writ petition.

The writ petition as such is disposed of. There will be no order

as to costs. Connected miscellaneous petitions are closed.

                                                           (S.V.G., CJ.)             (P.D.A., J.)
                                                                           06.07.2023

                     Index : yes/no
                     Neutral Citation        : Yes/No
                     sra


                     To:

                     State Bank of India,
                     Bank Road,
                     Kozhikode-673 001.







https://www.mhc.tn.gov.in/judis
                                             WP No.8608 of 2023



                                   THE HON'BLE CHIEF JUSTICE
                                                AND
                                        P.D.AUDIKESAVALU, J.

                                                          (sra)




                                          WP No.8608 of 2023




                                                   06.07.2023







https://www.mhc.tn.gov.in/judis

 
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