Full Judgment Text
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
JUDGMENT
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
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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:
JUDGMENT
1) The appellant will clear the outstanding dues of
Rs 1,02,06,815/- by payment in monthly installments at
th
the rate of Rs. 15,00,000/- per month to be paid by 5
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.
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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
JUDGMENT
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