M/s. Meenakshi Agencies Rep. by its Proprietor E. Kala v. The Authorised Officer, Indian Bank, Circle Office, Moopanar Arcade, Besant Road, Kumbakonam & Ors

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 13.11.2009CORAM:THE HONOURABLE MR. JUSTICE S.J.MUKHOPADHAYAAndTHE HONOURABLE MR.JUSTICE R.SUDHAKARW.P.No.16830 of 2009andM.P.No.1 of 2009M/s.Meenakshi AgenciesRep. by its Proprietor E.Kala,No.28, South Street, Thopputhurai,Vedaranyam-614 810... Petitioner v.1.The Authorised Officer, Indian Bank, Circle Office, Moopanar Arcade, Besant Road, Kumbakonam.2.The Debts Recovery Tribunal-III, Spencer Towers, Mount Road, Chennai-2.3.The Debts Recovery Appellate Tribunal, IV Floor, Indian Bank Circle Office, No.55, Ethiraj Salai, Chennai-8. .. Respondents Writ Petition filed under Article 226 of the Constitution ofIndia for issuance of Writ of Mandamus, directing the thirdrespondent herein to take up the appeal filed by the petitioner andothers, pending in I.N.No.535 of 2009 for the purpose ofconsideration of grant of interim orders as expeditiously aspossible.For Petitioner : Mr.S.R.RaghunathanFor Respondent No.1: Mr.P.V.Murlidhar https://hcservices.ecourts.gov.in/hcservices/ O R D E R(Order of the Court was made by S.J.MUKHOPADHAYA, J.)The Writ Petition was preferred by the petitioner for adirection to the third respondent to take up the appeal filed by thepetitioner and others, pending in I.N.No.535 of 2009.2. When the case was taken up, it was brought to the notice ofthe Court that when the petitioner/M/s.Meenakshi Agencies moved theDebts Recovery Tribunal-III, Chennai in S.A.No.90 of 2009, the saidTribunal, by order dated 10.07.2009, noticed the submissions of thepetitioner that the petitioner has agreed to pay the total dues withsimple interest at the rate of 15% p.a. from 01.05.2009. Therespondent Bank having agreed to the said submissions, the Tribunalhas passed the following consent orders which has been extractedhere-under :4. After hearing both the sides for paymentof the dues by the applicant as contended by himand as per the memo filed, the followingarrangement for payment of the dues within thetime frame fixed is recorded hereunder:-(i) The applicants permit the respondent bankto appropriate the sum of Rs.10 lakhs lying "nolien" account to the loan account of theapplicants today against the present dues i.e.,Rs.62,37,270.50p and after the said sum of Rs.10lakhs are adjusted the applicants should pay thebalance amount of Rs.52,37.270.50p as under:-(ii) 25% of Rs.25,37,270.50p on or before15.07.2009 i.e., the date of sale fixed in thesale notice dated 10.06.2009.(iii) 25% of the balance amount on or before14.08.2009 together with costs incurred by therespondent bank towards publication of statutorynotices (on the respondent bank's furnishing thedetails of expenditure incurred by the bank withina week).(iv) 25% of the balance amount due togetherwith interest (on reducing balance @ 15% simpleinterest calculated from 01.05.2009 to 30.10.2009)is payable in two instalments i.e., 12.5% of theamount on or before 30.09.2009 and the balance12.5% of the balance amount on or before https://hcservices.ecourts.gov.in/hcservices/

30.10.2009.The counsel for the respondent bank, who isbriefed by the Authorised officer, who is presentin the Court did not make any objections for theabove said arrangement of the payment of the dues.Hence, the respondent bank has to stay furtheraction in pursuance of the sale notice dated10.06.2009. However, the stay order shall be inoperation subject to the above terms.All the above mentioned payments from (i) to(iv) to be made in the loan account of theApplicant with the Respondent Bank directly andfile proof thereof. This order is passed on thememo filed by the counsel for the applicants andthe counsel for the applicants also agreed to theabove arrangement while dictating the order.5. In the event of payment of amount asstated in sub para (i) to (ii) of para 4, by theapplicants, the stay continues further until thenext payment mentioned para 4(iii) and oncompliance of the condition mentioned in para 4(iii), the stay continues upto 30.09.2009 andthereafter upto 30.10.2009. No extension of timefor compliance of the conditional order shall begranted for any reason whatsoever. In the eventof non compliance of any one of the conditionsstipulated in para 4(i) to (iv) above, the interimstay shall stand automatically vacated withoutthere being any need to pass further orders andthe respondent bank is entitled to take furtheraction to sell the secured asset according to lawknown to them."3. Against the said order, the petitioner is stated to havepreferred an appeal before the Debts Recovery Tribunal No.III,Chennai in I.N.No.535 of 2009. The Debts Recovery Tribunal, Chennaiis not functioning in the absence of the Chairperson, and hence, thepresent Writ Petition was preferred by the petitioner to dispose ofthe said appeal.4. When the learned counsel for the appellant was confronted asto how an appeal is maintainable against the consent order, it wasagreed that the appeal is not maintainable against the consent orderand in this background, the petitioner has agreed to pay the totalamount in terms with the order dated 10.07.2009, passed by the DebtsRecovery Tribunal in S.A.No.90 of 2009. https://hcservices.ecourts.gov.in/hcservices/

5. The learned counsel for the petitioner brought to the noticeof this Court that in view of the interim order of the Tribunal, thepetitioner has deposited certain amount and he has also filed acalculation chart showing the amount paid and the amount due to thebank in terms of the order passed by the Debts Recovery Tribunalincluding the amount to which they are entitled to pay towardsinterest.6. The chart showing the calculation is as follows:- Rs.Value of Demand as per 13(2) Notice :52,24,311.00Value of SARFAESI APPEAL :62,37,270.00Less: Amounts already paidOn 10.07.200910,00,000(Amount deposited in No Lien in May 2009 adjusted)On 15.07.200913,09,204On 03.09.2009 8,09,350On 30.10.2009 5,00,000On 03.11.2009 5,00,000========= :41,18,554.00 ============= 21,18,716.00Add: S.I calculated on diminishing balance balance @ 15% p.a. as on 11.11.2009(Calculation done as per DRT Order) Amount Interest for Interest Rs. No. of Days Amt. Rs.52,37,270 45 96,62739,28,066 48 77,30431,18,716 58 74,16326,18,716 2 2,14721,18,716 9 7,818 ======= 2,58,059.00 =============Total 23,76,775.00 =============7. A separate affidavit has been filed by the petitioner askingfurther four weeks time to pay the entire amount due as per the abovesaid calculation.8. The learned counsel appearing on behalf of the Bank did notdispute the quantum shown in the calculation and the fact that the https://hcservices.ecourts.gov.in/hcservices/ amount as shown has already been deposited and also accepted thequantum of amount due to be paid as shown in the calculation. He onlyprayed that some more amount should be ordered to be depositedtowards publication of statutory notices etc.9. We have heard the learned counsel on behalf of the partiesand perused the records.10. Having taken into consideration the fact that the petitioneragreed to pay the amount in terms of the order passed, as ordered bythe Debts Recovery Tribunal, Chennai dated 10.07.2009 and that a sumof Rs.41,18,554/- has already been deposited by the petitioner duringthe pendency of the case to show his bona-fide, we allow thepetitioner to deposit the amount of Rs.23,76,775/- on or before15.12.2009. If the amount is deposited as per the order passed bythe Tribunal as stated above by the petitioner, the Tribunal mayclose the case pending before it, if total amount stands satisfied.However, we will make it clear that as we have not allowed any othercosts, the Tribunal will not insist on the payment of cost forpublication. 11. So far as the amount of Rs.10,00,000/- already depositedwith the bank and kept in 'no lien' account, is concerned, the Bankmay adjust the said amount towards the dues of the petitioner. The Writ Petition stands disposed of with the above saidobservation. There shall be no orders as to costs. The connectedMiscellaneous Petition is closed.Sd/-Asst. Registrar//True Copy//Sub Asst. Registrarmf/dpTo1.The Authorised Officer, Indian Bank, Circle Office, Moopanar Arcade, Besant Road, Kumbakonam.2.The Debts Recovery Tribunal-III, Spencer Towers, Mount Road, Chennai-2. https://hcservices.ecourts.gov.in/hcservices/

3.The Debts Recovery Appellate Tribunal, IV Floor, Indian Bank Circle Office, No.55, Ethiraj Salai, Chennai-8.+ 1 cc to Mr.S.R.Rajagopal,Advocate,SR.61008W.P.No.16830 of 2009andM.P.No.1 of 2009PKB(CO)EM/1.12.09