R.BANUMATHI,J. - (1.) This appeal is preferred against the judgment dated 19.11.2015 passed by the High Court of Judicature at Bombay in ARA No. 15 of 2014 dismissing the appeal of the appellant Bank thereby affirming the judgment of the District Judge, Pune and the award passed by the MSMEDF Council directing the appellant Bank to pay Rs. 1,62,82,079/- with interest at the rate of 24% to respondent No. 1 and also pay cost of Rs. 5,00,000/- to respondent No. 1.
(2.) The matter has a chequered history of two decades. Brief facts which led to filing of this appeal are as follows:- The appellant Bank filed suit in Special Suit No. 628 of 1998 for recovery of Rs. 9.55 lakhs along with interest against one M/s Sona Aluminium Finishers (P) Ltd. The said suit was decreed on 30.01.1999. Since the decreed amount exceeded rupees ten lakhs, in view of Section 31-A of Recovery of Debts due to Banks and Financial Institutions (RDDBFI) Act, 1993, the recovery proceedings were transferred to the Recovery Officer, Debt Recovery Tribunal (DRT), Pune and registered as R.P. No. 06/2002. After attachment of the property, the property was auctioned on 08.03.2006. By order of DRT dated 14.07.2006, certificate of sale was issued in favour of auction purchasers-respondents No. 3 to 5. Since the Certificate Debtors (Mortgagor/Guarantor) were said to be creating obstruction in delivery of possession of the property to the auction purchasers, by order dated 26.07.2006, the Recovery Officer, DRT, Pune appointed respondent No.1 as "Court Commissioner". The appellant Bank was directed to pay service charges to the first respondent. Respondent No. 1 took possession of the property on 09.11.2006. Auction purchasers filed an application in R.P. No. 06 of 2002 on 13.11.2006 and DRT, Pune on the same date i.e. 13.11.2006 directed respondent No. 1 to hand over the possession of the subject property to the auction purchasers.
(3.) There was then a dispute between the appellant Bank and M/s Sona Aluminium Finishers (P) Ltd. - Certificate Debtor and the same came to be compromised; however the same failed due to non-compliance of the terms and conditions of the compromise. Appellant Bank sent letter dated 04.05.2007 informing the first respondent that they had decided to discharge the Court Commissioner with effect from 08.05.2007 and the Bank also paid the charges of respondent No. 1 up to 08.05.2007. However, the Recovery Officer by his order dated 12.06.2007 directed the appellant Bank to continue to pay the charges to respondent No. 1 which was challenged by the appellant Bank before the Presiding Officer, DRT, Pune by preferring Appeal No. 25 of 2007. In Appeal No. 25 of 2007, vide order dated 24.07.2008, DRT set aside the order of the Recovery Officer and directed the first respondent to take steps for recovery of its charges from the auction purchasers from 08.05.2007. Be it noted, respondent No. 1 had not challenged the order dated 24.07.2008; but filed an application on 07.11.2008 in R.P. No. 06/2002 seeking for direction to the auction purchasers to pay its charges. Only the auction purchasers challenged the order of DRT dated 24.07.2008 before Debt Recovery Appellate Tribunal (DRAT), Mumbai in Appeal No. 589 of 2008 wherein respondent No. 1 was one of the respondents. When the said appeal filed by the auction purchasers was pending before DRAT, the first respondent filed Writ Petition No. 10259 of 2011 seeking direction from the High Court to expedite hearing of the said appeal and dispose the same at an early date. The said writ petition was disposed of by order dated 16.01.2012 directing DRAT, Mumbai to decide the appeal within a period of three months and accordingly, the said Appeal No. 589 of 2008 was dismissed for default on 30.05.2012.;