STATE BANK OF INDIA Vs. RAC PACKAGE INDUSTRIES
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) THIS regular appeal has been filed as against the order dated 14.11.2005 in IA-371/2005 in OA-394/2002 on the file of DRT-II, Chennai.
(2.) The appellant Bank filed the OA against five respondents for recovery of a sum of Rs. 28,74,474.87p. together with interest at the rate of 12.5% p.a. with quarterly rests. The defendants entered appearance and took time for filing reply statement. At that stage, the defendants have approached the applicant Bank for a settlement and also given a proposal. The defendants have agreed to pay Rs. 21.02 lakh out of Rs. 28.74 lakh and agreed to pay a sum of Rs. 50,000/- on or before 30.9.2004 and the remaining amount on or before 28.8.2005 with Bank's PLR simple rate of interest and failure to comply with the above said compromise, the applicant Bank is at liberty to claim the entire amount as claimed in the OA.
The matter was referred to the Lok Adalat held by the Tribunal on 28.8.2004, and the Lok Adalat passed an award on 28.8.2004, which runs as under:
When the matter was taken up for hearing, the parties have come to the following settlement:
Claim Amount is Rs. 28.74 lakh
Settlement amount is Rs. 21.02 lakh
The defendant agrees to pay a sum of Rs. 50,000/- on or before 30.9.2004 and the remaining amount on or before 28.8.2005 with Bank's PLR simple rate.
If the defendant fails to pay the amount as per the above compromise, the Bank is liberty to claim the entire claim amount without reference to this compromise.
The DRT recorded the settlement reached before the Lok Adalat and passed an order dated 14.10.2004 on the same terms, that in terms of the award, the OA has been disposed of.
(3.) IT is the case of the appellant that the defendants have not paid as per the award passed by the Lok Adalat, and therefore, they have filed an application IA-371/2005 praying the Tribunal to pass an award against the defendants for a sum of Rs. 28.74 lakh with further interest at the contractual rate. That petition was heard by the DRT-II, Chennai and it ordered for the issuance of the recovery certificate against the 1st defendant only for a sum of Rs. 28,74,474.87p. together with interest at 12.5% p.a. with quarterly rests from 1.12.2002 till the date of realisation along with costs and for other reliefs. Aggrieved by the same, this appeal has been filed.
I have heard the learned Advocate for the appellant and the 5th respondent.;
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