An appeal against the dismissal of an Original Application dated 30.09.2013 by Debts Recovery Tribunal, Pune. The appellate court dismissed the appellant bank's contention regarding the calculation of dues and interest, upholding the DRT's findings.
The appeal is dismissed.
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BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Mr Justice Ashok Menon, Chairperson
Appeal No. 62/2014
Between
Punjab National Bank … Appellant/s
V/s.
N.s J. K. Industries & Anr. …Respondent/s
Mr Anup Khaitan, i/b M/s Anup Khaitan & Co., Advocate for Appellant Bank.
Ms N. K. Khasbardar, Advocate for Respondents.
This appeal was filed originally by the Oriental Bank of Commerce (OBC) assailing the dismissal of the Original Application (O.A.) No. 29 of 2006 by the Debts Recovery Tribunal, Pune (D.R.T.) by judgment and order dated 30.09.2013 filed under the provisions of the Recovery of Debts Due to the Banks and Financial Institutions Act, 1993 (“RDDB & FI Act”, for short). The original appellant was thereafter substituted by the Punjab National Bank during the pendency of the appeal.
The first respondent is a proprietorship represented by its sole proprietrix. She approached the Global Trust Bank (GTB) for a grant of overdraft facilities and was accordingly, granted overdraft loans from 1998 to 2001. She executed a demand promissory note on different dates, letter of lien was also executed in favour of GTB in respect of all the facilities which were granted from time to time. The
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second respondent stood a guarantee for the repayment of the debt. He also executed an affidavit cum declaration on 09.11.2001 creating an equitable mortgage of his properties. The first respondent had executed a letter of acknowledgement on 23.05.2001 acknowledging the outstanding dues to the tune of ₹1,13,53,345. The second respondent had also agreed to bring down the liability within the limit of 90% of the termed deposits which were offered as security. Acknowledgment of debt was again executed by the first respondent on 03.03.2003 confirming an outstanding balance of ₹1,23,27,633.36.
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interest claimed by the applicant is exorbitant and against the directions of the RBI.
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an expert cannot be accepted without examining him.
After considering the facts and circumstances that the OBC the applicant had itself appointed a Chartered Accountant for calculating the dues per the guidelines of the RBI from time to time. The Tribunal is not an expert in the calculation of the accounts. The Chartered Accountant who had prepared the report for the respondents had also filed an affidavit in support of his calculation. Hence, there were two reports of Chartered Accountants on either side to verify the accounts. The D.R.T had rightly relied upon the account statement given by the Chartered Accountants appointed by the Bank. The Ld. Presiding Officer has considered every aspect in great detail and I do not find any reason to upset the findings of the Ld. P.O.
Resultantly, the appeal is dismissed.
mks-01.
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2 issues framed by the court
Whether the Drain Recovery Tribunal (DRT) order finding an excess of interest and inaccurate calculation of dues by the bank should be disturbed.
Whether the Chartered Accountant's report relied upon by the bank should be accepted without examining the expert.
Colour shows how this judgement treated each authority
Indian Bank vs. Blue Jaggers Estates Ltd.Referred¶20
Indian Bank vs. Blue Jaggers Estates Ltd. (2010) 8 SCC 129 · Who else cites this
State of Maharashtra vs. DamuReferred¶20
State of Maharashtra vs. Damu (2000) 6 SCC 269 · Who else cites this
1 provisions across 1 enactments
Punjab National Bank
N.s J. K. Industries & Anr.
Ashok Menon
As recorded by the court registry
14 orders share this CNR
Judgements on the same questions, provisions and authorities, from every court
