INDIAN BANK Vs. D P RAVINDRAN & ORS

JUDGEMENT

(1.) Writ petitions in W.P. Nos. 9802 and 17275 of 2002 have been preferred by the borrowers and writ petitions in W.P. No. 18152 of 2002 has been preferred by the guarantor. Aggrieved by the interim order passed by the learned Single Judge in W.P. M.P. Nos. 28471 and 28472 of 2002 in W.P. Nos. 18152 and 17275 of 2002, the Bank preferred writ appeals in W.A. Nos. 1865 and 1866 of 2002. All these cases were heard together and disposed of by this common judgment.

(2.) The appellant-Indian Bank sanctioned credit facilities to Mr. S. Ravi, Proprietor of M/s. Kumar Bricks Works and to Mr. S. Kumar, Proprietor of M/s. N.S.K. Bricks Works. One Mr. V. Manoharan, became the guarantor for the borrower Mr. S. Kumar and one Ms. V. Chandrammel became the guarantor for the borrower Mr. S. Ravi and the property was mortgaged. The borrowers committed default in payment of loan and the guarantors also did not take steps to pay the amounts. In this background, the Bank preferred two suits in C.S. Nos. 864 and 865 of 1993, before the original side of this Court for recovery of loan. In C.S. No. 864 of 1993 for a sum of ? 11,39,095.66. Due to pecuniary jurisdiction, C.S. No. 865 of 1993 was transferred to the City Civil Court, Chennai, which passed preliminary decree in the said case on 8.10.1996 for a sum of ? 7,09,354.23 along with interest and costs. Admittedly, no appeal was preferred by any of the borrowers or guarantor against any of the aforesaid preliminary decrees, which reached finality.

(3.) In the meantime, Recovery of Debts Due to Banks and Financial Institutions Act, 1993, having come into effect, after the decrees, the Debt Recovery Tribunal (for short 'the DRT'), Chennai and registered as O.A. Nos. 1190 and 1191 of 2000. On 7.12.2000, the DRT, Chennai directed to issue Recovery Certificates for the deretal amounts with interest till the payment in full and action was taken to auction-sale the property.