Allowed

Canara Bank v. Trends Times

DRT20 Dec 2022MA/251/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application to issue a Recovery Certificate. The Tribunal noted the original application was compromised via a National Lok Adalath award which specified default consequences if payment obligations were not met. Upon confirming default by respondents, the Tribunal directed the registry to issue the certificate.

What did the court decide?

Recovery Certificate to be issued in terms of the National Lok Adalath award dated 12.12.2015.

Canara Bank versus Trends Times — Environment and Pollution | DRT (2022)

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Fair order

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IN THE DEBTS RECOVERY TRIBUNAL-1 AT ERNAKULAM

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DATED THIS 20^th DAY OF DECEMBER, 2022

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PRESENT: Su. WILLYAHM, B.Sc., M.L. [DISTRICT JUDGE - Retd] PRESIDING OFFICER

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MA No. 251/2022 in

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OA No.436/2015

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Between

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Canara Bank SME Branch 1^st Floor, Aysha Building Jail Road, Kozhikode – 673 004 Represented by its Senior Manager

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----Applicant

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And

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M/s. Trends Times 14/805A, Bye Pass Road Pantheerankavu P.O. Calicut – 673 019 Represented by its Partners

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Aji Joseph Flat No.7, Queens Apartment Kuthiravattom P.O.

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Kottali, Calicut – 673 016

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Radha

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W/o. Gangadharan Rayaroth Meethal Chenoli P.O., Nochad Perambra, Calicut – 673 525

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MA No.251/2022 in OA 436/2015

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Kalliani Amma W/o. Late Ramunni Nair Rayaroth Meethal Chenoli P.O., Nochad Perambra, Calicut – 673 525

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----Defendants

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This petition coming on 16.12.2022 for hearing before me in the presence of Ms. M. S. Kiran, Advocate counsel for the Petitioner/Applicant and upon hearing arguments of learned counsel for the Petitioner/Applicant and upon perusing the material on records, this Tribunal delivered the following:

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O R D E R

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MA No.251/2022 in OA No.436/2015 :- This petition has been filed praying to issue Recovery Certificate in the Original Application pursuant to Annexure – A1 Award passed by the National Lok Adalath for the ends of justice.

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The petitioner bank has filed an affidavit of its Manager stating inter alia that the above Original Application has been filed for realization of a sum of Rs.11,24,659/- due in the OCC facility together with interest @14.50% per annum compounded monthly and costs from the date of Original Application till date of realization from the defendants and by sale of the Original Application schedule properties and also from other assets of the defendants.

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The Original Application has been compromised in National Lok Adalat held at DRT-1 on 12.12.2015 and as per the terms of compromise, the defendants were obliged to remit a sum of Rs.10,00,000/- in four installments to the applicant bank as set out in the terms of compromise. In the event of failure to pay the amount, benefit of the compromise be withdrawn and the bank was declared to be entitled to recover the entire amount as claimed in the Original Application with interest and costs till recovery in full from the defendants and by sale of the hypothecated and mortgaged properties shown in the Original Application and also from the other assets of the defendants. It is stated that the defendants have not paid any amount as per the said award and hence it is prayed to issue a Recovery Certificate as claimed in the Original Application.

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On perusal of records, it could be seen that the Tribunal had on 18.12.2015 disposed of the OA and connected IAs pursuant to the award passed in the National Lok Adalat held at DRT-1, Ernakulam

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Page 2 of 3

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MA No.251/2022 in OA 436/2015

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on 12.12.2015 by directing the Registry to refund Rs.7,000/- to the petitioner/applicant bank being the refund amount to which it was entitled under Section 19(3A) of the RDDBFI Act read with Rule 4(a) of the Debts Recovery Tribunal (Refund of Court Fee) Rules, 2013.

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As per the award, the defendants had to pay an amount of Rs.10,00,000/- to the petitioner/applicant bank on or before 30.03.2016. It was made clear in the award that in the event of failure to pay the amount as aforesaid, the defendants shall forfeit the benefits of compromise and they shall have no objection for issuance of Recovery Certificate for the entire amount claimed in the Original Application with interest and costs, less payments effected subsequent to passing of the award, on filing of necessary application before the Tribunal intimating the instance of such default.

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According to the petitioner/applicant bank, the defendants have not paid any amount as per the award dated 12.12.2015 and, therefore, they are entitled for a Recovery Certificate in terms of the default clause set out therein.

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In the light of the above, MA No.251/2022 stands allowed. The Registry is hereby directed to issue Recovery Certificate in terms of the award dated 12.12.2015.

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Dictated to Steno, taken down, transcribed, typed by her, corrected and pronounced by me in the Open Court, this the 20^th December, 2022.

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[Su. WILLYAHM]

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PRESIDING OFFICER

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Page 3 of 3

Canara Bank v. Trends Times

Case brief

What is this about?

What did the court decide?

Canara Bank v. Trends Times

Case brief

What is this about?

What did the court decide?

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