Telangana High Court
M/S. Srinivasa Talkies And 4 Others vs The Debt Recovery Appellate Tribunal ... on 12 September, 2024
THE HON'BLE THE CHIEF JUSTICE ALOK ARADHE
AND
THE HON'BLE SRI JUSTICE J. SREENIVAS RAO
WRIT PETITION No.12678 of 2009
ORDER:
(per the Hon'ble the Chief Justice Alok Aradhe)
Ms. B. Shailaja, learned counsel appears for
Ms. K. Udaya Sri, learned counsel for the petitioners.
Mr. A. Krishnam Raju, learned Standing Counsel for
State Bank of Hyderabad appears for respondent No.3.
2. In this Writ Petition, the petitioners have assailed the
validity of the order dated 25.05.2005 passed by the Debts
Recovery Tribunal, Hyderabad, in O.A.No.225 of 2003, as
well as the order dated 31.01.2007 passed by the Debts
Recovery Appellate Tribunal, Chennai, dismissing R.A.No.41
of 2006 preferred by the petitioners.
3. Facts giving rise to filing of this Writ Petition briefly
stated are that the petitioners obtained a loan of Rs.3,50,000/-
from respondent No.3 - State Bank of India, Hyderabad
(hereinafter referred to as 'the Bank'), for construction of a
cinema talkies. The petitioners secured the amount of loan by
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creating an equitable mortgage in respect of the schedule
properties. The petitioners could not repay the amount of loan.
Thereupon, the Bank was constrained to file a suit, namely,
O.S.No.25 of 1990 before the learned Senior Civil Judge,
Sattupalli, for recovery of a sum of Rs.5,93,264/-.
4. In the aforesaid civil suit, a preliminary decree was
passed on 31.03.2001. Against the aforesaid preliminary
decree, defendant Nos.1, 2, 8 and 9 filed an appeal, namely,
A.S.No.2481 of 2001 before the erstwhile High Court of
Andhra Pradesh. The aforesaid appeal was allowed vide
judgment and decree dated 12.12.2001 by which a Bench of
this Court modified the decree passed by the trial Court and
directed the defendants to pay a sum of Rs.5,93,264/- along
with interest @15% per annum with quarterly rests from the
date of suit till the date of decree and thereafter, simple interest
@ 15% per annum from the date of decree till the date of
realization. The Bank filed an Execution Petition, namely,
E.P.No.46 of 2002 before the Civil Court. The aforesaid
proceeding, on constitution of the Debts Recovery Tribunal,
was transferred to the Tribunal and was numbered as
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O.A.No.225 of 2003. The Debts Recovery Tribunal by an
order dated 24.05.2005 allowed the aforesaid O.A. and issued
the recovery certificate.
5. Being aggrieved, the petitioners filed an appeal, namely,
R.A.No.41 of 2006, before the Debts Recovery Appellate
Tribunal. The Debts Recovery Appellate Tribunal by an order
dated 31.01.2007 inter alia held that the petitioners are not
entitled to claim the benefit of One Time Settlement
(hereinafter referred to as 'OTS') Scheme issued by the
Reserve Bank of India dated 29.01.2003 as OTS Scheme is
applicable only to the cases where the decree has not been
passed. The Debts Recovery Appellate Tribunal affirmed the
order dated 24.05.2005 passed by the Debts Recovery Tribunal
and dismissed the appeal. In the aforesaid factual background,
this Writ Petition has been filed.
6. Learned counsel for the petitioners submitted that the
Debts Recovery Tribunal grossly erred in issuing a recovery
certificate for a sum of Rs.12,20,623/-. It is further submitted
that the Debts Recovery Tribunal as well as the Debts
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Recovery Appellate Tribunal grossly erred in awarding
interest @15% per annum. It is argued that the Debts
Recovery Tribunal erred in awarding an amount of Rs.66,507/-
on account of Advocate Fee and other charges.
7. On the other hand, learned counsel for the respondent
Bank has supported the order passed by the Debts Recovery
Tribunal.
8. We have considered the rival submissions made on both
sides and have perused the record.
9. Admittedly, the Bank had filed O.S.No.25 of 1990
before the learned Senior Civil Judge, Sattupalli, for recovery
of a sum of Rs.5,93,264/-. It is not in dispute that in the
aforesaid civil suit, a preliminary decree was passed on
31.03.2001. Against the aforesaid decree, defendant Nos.1, 2,
8 and 9 preferred an appeal, namely, A.S.No.2481 of 2001.
The aforesaid appeal was allowed by judgment and decree
dated 12.12.2001 and the judgment and decree passed by the
trial Court was modified and the defendants were directed to
pay a sum of Rs.5,93,264/- together with interest @15% per
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annum with quarterly rests from the date of the suit till the date
of decree and thereafter, simple interest @15% per annum
from the date of decree till realization. The aforesaid judgment
and decree has attained finality and therefore, the contention
urged on behalf of the petitioners that the interest could not
have been awarded @ 15% does not deserve acceptance.
10. So far as the submission that the petitioners are entitled
to OTS Scheme issued by the Reserve Bank of India dated
29.01.2003 is concerned, it is noteworthy that the guidelines
relating to the aforesaid Scheme was considered by the
Supreme Court in X-Calibre Knives (Petitioner) Ltd. v. State
Bank of India 1 and it was held that the guidelines of the
aforesaid Scheme apply only in cases where the decree has not
been passed. In the instant case, the decree against the
petitioners has already passed on 31.03.2001 and therefore, the
aforesaid Scheme floated by the Reserve Bank of India on
29.01.2003 subsequently does not apply to the facts of the
case. The Debts Recovery Appellate Tribunal has therefore
rightly negatived the contention of the learned counsel for the
(2005) 10 SCC 265
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petitioners that the petitioners are entitled to benefit of the
OTS Scheme issued by the Reserve Bank of India dated
29.01.2003.
11. For the aforementioned reasons, we do not find any
ground to interfere with the concurrent findings of fact
recorded by the Debts Recovery Tribunal as well as the Debts
Recovery Appellate Tribunal.
12. In the result, the Writ Petition fails and is hereby
dismissed.
Miscellaneous applications, if any pending, shall stand
closed. There shall be no order as to costs.
___________________
ALOK ARADHE, CJ
____________________
J. SREENIVAS RAO, J
12th SEPTEMBER, 2024.
kvni
