AMAL KUMAR CHOUDHARY S/O CHANDRA BHUSHAN PRASAD CHOUDHARY Vs. STATE BANK OF INDIA UNION OF INDIA THROUGH DEBT RECOVERY TRIBUNAL; PRACHI EXIM INDIA LTD; MAHENDRA NARAIN KUNWAR; SEEMA; SANJEEV KUMAR; REKHA CHAUDHARY; RAJIV RANJAN KUMAR; MANI MALA DEVI

JUDGEMENT

(1.) The challenge in the present Letters Patent Appeal is to an order passed by a learned Single Bench of this Court on 28th of June, 2012 whereby an order passed by the Debt Recovery Tribunal (for short, "the Tribunal") directing the Bank to pay Rs.5 lacs as compensation, was set aside.

(2.) The case has a chequered history, but it will suffice to give background briefly. M/s. Prachi Exim India Ltd., the Company incorporated, of which the appellant is a Managing Director, availed financial assistance from the Bank. However, there was default in making payments, which led the Bank to initiate proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, "SARFAESI Act"). The borrower challenged the action initiated by the Bank under the SARFAESI Act before this Court in CWJC No.9527 of 2007. The writ petition was allowed, but the said order was set aside in Letters Patent Appeal No.129 of 2008 on 17th of August, 2010. The Special Leave Petition against the said order was dismissed.

(3.) As per the Bank, mortgaged property was put to sale, but since the entire outstanding could not be recovered, the Bank initiated proceedings under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (for short, "the Act") by filing an application on 2nd of July, 2007 under Section 19 of the Act before the Tribunal for the recovery of Rs.34,71,481.11. The defendant put in appearance, but no counter claim was filed on first appearance. The Original Application was allowed on 9th of January, 2012 after returning the following findings: