- (1.) Heard Sri Vikram D. Chauhan, Advocate for petitioners and Sri Satish Chaturvedi, Advocate for respondent-Bank.
(2.) Petitioner no. 1, M/s B.K. Jewellers, (hereinafter referred to as the "Firm") is a Proprietorship Firm having its office/showroom at Mukesh Palace, Kinari Bazar, Agra and petitioner no. 2 is the Proprietor of aforesaid Firm. The Firm is carrying on business of Jewellary and sale and purchase of Gold and Silver ornaments.
(3.) A current account was opened by petitioners in the name of Firm with State Bank of India Seo Ka Bazar, Agra being Current Account No. 11/1797. On 05.11.1998 demand draft No. 191529 dated 03.11.1998 for a sum of Rs. 6,55,000/- drawn at Main Branch at Chipitola, Agra payable in favour of Firm was deposited in aforesaid current account by petitioner no. 2. It was sent for collection through local clearing to main branch of Bank and the amount of Rs. 6,55,000/- was credited in the Firm's account on 07.11.1998 being the proceeds of said draft. The draft amount Rs. 6,55,000 was withdrawn from current account on 12.11.1998 through Cheque No. 863707 dated 12.11.1998. Thereafter on 19.11.1999 the Draft Reconciliation Department of the Bank at Mumbai sent a fax massage to Zonal office at Agra advising that aforesaid draft was procured without consideration. It was one of the stolen draft and has been encashed/cleared from Bank. Having discovered that draft was drawn without consideration and was not a legal tender and its amount was credited in current account of petitioner no. 1 wrongly, the Bank advised the Firm to refund Rs. 6,55,000/- vide letter dated 08.12.1999. Since amount was not refunded, the Bank filed application under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as the "Act, 1993"), before Debts Recovery Tribunal (hereinafter referred to as the "Tribunal"), registered as O.A. No. 14 of 2002 for recovery of a total sum of Rs. 10,51,631/- (Rs. 6,55,000/- principal amount+Rs. 3,96,631/- interest from 12.11.1998 to 31.10.2001 at the rate of 16.25% per annum with quarterly rest and future interest on aforesaid amount at the same rate and cost etc.).;