M M MUSHROOMS Vs. CANARA BANK

JUDGEMENT

(1.) HEARD learned Counsel for the appellants. The appellants who were defendants in O. A. 507/1999 before DRT, Chandigarh, filed an application to set aside the ex pane final order dated 8.6.2000. The learned Presiding Officer of the DRT, Chandigarh considered the application and directed that the application for setting aside the ex parte final order will be allowed, subject to the condition that the appellants deposit Rs. 2 lakhs (Rupees two lakhs only) within 2 months with the applicant Bank, which may be adjusted towards the loan account, with a further condition that in case the recovery application is dismissed, the said amount will be refunded to the appellants with interest. The appellants were also directed to pay cost of Rs. 2,000 (Rupees two thousand only). The learned Presiding Officer made this conditional order with the stipulation that if the amount is not deposited on time as fixed, the application for setting aside the ex, parte final order will stand dismissed.

(2.) The appellants are aggrieved only with the portion of the order which directed the appellants to deposit Rs. 2 lakhs (Rupees two lakhs only). The learned Counsel for the appellants contends that the learned Presiding Officer of the DRT, Chandigarh having satisfied himself that there is sufficient ground for setting aside the ex parte final order ought not to have imposed such a condition that the appellants should deposit Rs. 2 lakhs (Rupees two lakhs only). According to the appellants, this is a penalty and cannot by sustained. He concedes that the appellants have not filed the Written Statement but contends that the appellants may even file Counter Claim against the applicant-Bank and under the circumstances the direction for deposit of Rs. 2 lakhs (Rupees two lakhs only) would be pre-judging the matter and, therefore, has to be set aside.

(3.) TAKING into consideration the fact that the appellants should be given an opportunity to put forward their case, the DRT, Chandigarh has passed the conditional order for setting aside ex pane order, subject to deposit of Rs. 2 lakhs (Rupees two lakhs only).