INDIAN BANK Vs. TECHNO FUTURA INTERNATIONAL LTD.
DEBTS RECOVERY APPELLATE TRIBUNAL
Techno Futura International Ltd. and Ors.
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K. Gnanaprakasam, J. -
(1.) APPEALS MA -S4/2006 and MA -55/2006 have been preferred against the common order dated 12.12.2005, passed by the DRT -I, Chennai , in MAs 268 and 201/2005 in OA -538/2000. MA -268/2005 was filed praying the DRT to set aside the order dated 13.10.2004 and recall the issuance of recovery certificate issued in the OA. MA -201/2005 was filed before the DRT to modify the order dated 22.11.2003 by extending the time for payment of the balance settlement amount.
(2.) THE appellant Bank and respondents have settled their claim before the Lok Adalat and an award was passed by the Lok Adalat on 22.11.2003, permitting the respondents to effect payments within the time given and the same was not complied with by the respondents. The Bank had applied for the issuance of the recovery certificate and the respondents filed an application to defer the issuance of the recovery certificate and the same was dismissed for default by DRT's order dated 13.10.2004. The respondents filed an application for extension of time for the payment of the amount due as per the award of the Lok Adalat dated 22.11.2003, and DRT by its order dated 12.12.2005 granted four weeks time for payment of the balance amount, and the same is under challenge in these appeals.
I have heard the learned Advocate for the appellant and the respondents and also perused the appeal records.
The fact that the appellant and the respondents have settled the claim before the Lok Adalat, which culminated in passing of an award on 22.11.2003, is not in dispute. The terms of the award run as follows:
The total claim by the Bank - Rs. 524.73 lakh The amount of settlement - Rs. 150.00 lakh
The defendant has already paid a sum of Rs. 37.5 lakh on 4.8.2003.
The defendant is today paying a sum of Rs. 3 lakh by cheque bearing No. 254915 dated 21.11.2003.
The defendant agrees to pay the remaining Rs. 109.50 lakh by 20.3.2004 with PLR interest from 1.8.2003.
In case of any default by the defendant, the Bank is at liberty to claim as per their claim in the OA.
Court fee is ordered to be refunded under Section 21(1) of the L.S.A. Act.
(3.) AS per this award, the defendant agreed to pay the remaining Rs. 109.50 lakh by 20.3.2004 with PLR rate of interest from 1.8.2003. The award further reads that in case of any default by the defendant, the Bank is at liberty to claim as per their claim in the OA. It is the contention of the appellant, as the respondents have not paid the amount within the given time, the Bank is entitled to claim the entire amount as claimed in the OA. It is further contended that the DRT has no power to extend the time, which was agreed to by the parties and in pursuance of the same, the award was also passed by the Lok Adalat.;
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