ORIENTAL BANK OF COMMERCE Vs. SUNDER LAL JAIN

JUDGEMENT

(1.) Leave granted.

(2.) This appeal, by special leave, has been preferred against the judgment and order dated 17.8.2005 of Delhi High Court, by which a direction was issued to the appellant Oriental Bank of Commerce to declare the respondents" account as Non-Performing Asset (NPA) from 31st March, 2000 and to apply the Reserve Bank of India Guidelines to their case and communicate the outstandings which shall be recoverable by quarterly instalments over a period of two years.

(3.) The respondents Sunder Lal Jain & another were sanctioned credit facility for Rs.20 lakhs on 12.12.1996. The respondent defaulted in repayment of the amount and their account was declared as NPA on 31.3.2001. On 21.2.2002, the appellant Oriental Bank of Commerce filed a petition against the respondents being O.A. No.21 of 2002 before the Debt Recovery Tribunal-III, Delhi (for short "the DRT"). The DRT passed a decree in favour of the appellant for recovery of Rs.20,27,862/- along with interest on 14.11.2003. The appellant initiated execution proceedings for recovery of the amount from the respondents and a recovery certificate was issued on 8.12.2003. The respondents did not file any appeal challenging the decree passed by the DRT. Instead, the respondents filed WP(C) No.559 of 2005 and WP(C) No.560 of 2004 before Delhi High Court praying that a direction be issued to the appellant, Oriental Bank of Commerce, to declare their account as NPA from 31.3.2000 and apply RBI Guidelines for reconciliation and settling the accounts with them. The petitions were disposed of by a short order on 17.8.2005 which reads as under :-