Tags Debt

Supreme Court of India (Division Bench (DB)- Two Judge)

Appeal (Civil), 1410 of 2016, Judgment Date: Feb 16, 2016


                                                              NON-REPORTABLE


                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION


                        CIVIL APPEAL NO. 1410 OF 2016
                 (Arising out of SLP ( C) No. 26542 of 2008)



PUNJAB & SIND BANK                                                 APPELLANT

                                      VERSUS

DEBTS RECOVERY APPELLATE TRIBUNAL
AND OTHERS                                                       RESPONDENTS



                                  J U D G M E N T

KURIAN, J.

1.    Leave granted.

2.    The  appellant-bank  is  aggrieved  by  the  impugned  judgment  dated
07.04.2008 of the High Court in C.W.P. No. 7730 of 2007.  The appellant  had
challenged the order dated 09.01.2007 passed by the Debt Recovery  Appellate
Tribunal, New Delhi in Misc. Appeal No.134 of 2006  whereby  the  respondent
No.2 herein had been ordered to be deleted as a defendant/guarantor  in  the
Original  Application  No.343/2004,  pending  before   the   Debt   Recovery
Tribunal, Chandigarh.


3.    The High Court at page 7 of the impugned judgment has held as  follows
:
      “From the above pleadings of the parties, it  is  crystal  clear  that
the bank has admitted that respondent No.2 had resigned from  the  Board  of
Director of respondent No.3-Company and  another  Director  has  executed  a
fresh guarantee substituting him.  Thus, it does not lie  in  the  mouth  of
the petitioner bank to say that respondent  No.2  is  not  absolved  of  his
liability even from the documents  placed  on  record.   The  stand  of  the
petitioner  bank  to  the  effect  that  the  guarantee  deed  executed   by
respondent Nos. 4 and 5 on 13.5.2003 was additional guarantee, is  falsified
from fresh guarantee deed, executed by respondent Nos. 4 and 5, which  shows
that they had executed this guarantee deed for a  sum  of  Rs.6,70,51,800.85
Ps., the exact amount, which was outstanding on that day.
      We also find that the loan amount of  the  petitioner  bank  has  been
secured by respondent company by  executing  mortgage  deeds  of  sufficient
valuable  properties.   In  addition  personal  guarantees  have  also  been
executed by respondent Nos. 4 and 5.”


4     The learned senior counsel appearing for the  appellant  submits  that
as  a  matter  of  fact,  there  is  no  guarantee  furnished   by   anybody
substituting the guarantee furnished by  respondent  No.2.   Learned  senior
counsel for  the  Bank  submits  that  from  other  proceedings  before  the
Tribunal, it is clear that one Mr. Sharanpal Singh  Juneja  had  executed  a
fresh guarantee in place of respondent No.2.   Since  the   High  Court  has
proceeded on the basis that there is already a guarantee  executed  by  Shri
Juneja  substituting  the  respondent  No.2,  we  find  there  is  an  error
apparent on the face of the record for which the appellant has  to  approach
the High Court itself by way of an application for  review.   Therefore,  we
dispose of this appeal permitting  the  appellant  to  move  an  appropriate
application for review.  We make it clear that in  case  review  application
is filed within a month from today, the same shall not be dismissed  on  the
ground of limitation since the  appellant  has  been  prosecuting  the  case
before this Court.

5     We make it clear that if there are any other errors which  have  crept
in the impugned judgment  of  the  High  Court,  it  will  be  open  to  the
appellant to take out the same in the review application.

6     We also make it clear that it will be open to the respondent  No.2  to
take up all available contentions before the High Court.

7.    The appeal is disposed of with no order as to costs.

                                                          .................J.
                                                              [KURIAN JOSEPH]


                                                       ....................J.
                                                      [ROHINTON FALI NARIMAN]
NEW DELHI;
FEBRUARY 16, 2016