D.NAGESWAR RAO Vs. S.B.I & ORS

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

Appeal (Civil), 786 of 2016, Judgment Date: Jan 29, 2016

                                                              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 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 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:

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


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