D.NAGESWAR RAO Vs. S.B.I & ORS
Supreme Court of India (Division Bench (DB)- Two Judge)
Appeal (Civil), 786 of 2016, Judgment Date: Jan 29, 2016
NON-REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 786 OF 2016
(Arising out of SLP (C) No. 20607 of 2010)
D.NAGESWAR RAO APPELLANT
VERSUS
S.B.I & ORS. RESPONDENTS
J U D G M E N T
KURIAN,J.
1. Leave granted.
2. The appellant committed default in repaying the loan availed by him
from the Respondent No.1-Bank. Consequently, the Bank initiated steps
under The Recovery of Debts Due to Banks and Financial Institutions Act,
1993 to recover the loan amount and obtained a decree for an amount of
Rs.92,94,183/-.
3. Since the appellant could not satisfy the decreetal amount, the Bank
proceeded further and put the property to auction. Respondent No.3 is the
auction purchaser. The property was auctioned for an amount of
Rs.48,80,000/-. The Respondent No.3 had deposited the entire amount of
Rs.48,80,000/- before the Debt Recovery Tribunal, though belatedly, and the
same is kept in an interest bearing account.
4. When the matter came up on an earlier occasion, we directed the
learned counsel for the Bank to take instruction as to what is the amount
outstanding as on today. On written instruction it is informed that after
adjusting the amount of Rs.60,00,000/- which the appellant deposited in
pursuance of the order of this Court, outstanding dues as on today is Rs.
1,02,06,815/-.
5. The learned counsel for the appellant submits that the appellant may
be permitted to pay the said amount. The only indulgence sought is that he
may be permitted to pay the outstanding amount in installments.
6. Though, the request is seriously opposed by the learned counsel for
the Bank, having regard to the past conduct of the appellant, in the
interest of justice, we propose to give one more opportunity to the
appellant. After all, the bank need only get its money, even if the
auction is confirmed in favour of the respondent auction purchaser, it will
not meet even 1/3 of the dues. The appellant undertakes that the amount
can be paid in monthly installment of Rs.15,00,000/-.
7. The appeal is hence, disposed of as follows:
1) The appellant will clear the outstanding dues of Rs 1,02,06,815/-
by payment in monthly installments at the rate of Rs. 15,00,000/- per month
to be paid by 5th of every month starting from March, 2016.
2) In case there is any default of two consecutive installments, we
make it clear that the appellant shall not be entitled for any indulgence
and his appeal will stand dismissed and it will be open to the Bank to
proceed with the matter in accordance with law.
3) The deposit made by Respondent No.3 will continue before the Debt
Recovery Tribunal till the whole outstanding dues are cleared by the
appellant as above. In case, the appellant clears the amount as per this
Judgment, the appellant shall pay an amount of Rs.5,00,000/- towards
compensation to Respondent No.3 and the Bank shall also pay an amount of
Rs.5,00,000/- towards compensation to respondent No.3. The deposit made by
the auction purchaser, along with interest accrued shall be returned to
him. The payment as above shall be made within one month from the date of
appellant clearing the dues to the Bank.
......................J.
[KURIAN JOSEPH]
.......................J.
[ROHINTON FALI NARIMAN
NEW DELHI;
JANUARY 29, 2016