ST GEORGE CASHEW TRADERS Vs. SOUTH INDIAN BANK LTD

JUDGEMENT

(1.) ORIGINAL Application (OA) was filed before the PO, DRT, Ernakulam, and the PO, DRT, passed order on 11.1.2000 ordering issue of Recovery Certificate as against defendants 1 to 10 and their assets and if it is not sufficient and then against D1 to D10. That order was subsequently modified by Order dated 6.7.2000 directing defendants 1 to 8, 10 and 13 to 18 to pay the decree amount as mentioned in the original order since D9 died and his LRs have been added subsequently. The appellants have filed appeal as against that order contending that D11 and D12 who are the insurers of the 1st defendant are liable to pay the amount since the stock and building have been insured with them for Rs. 15 lakhs and for Rs. 2,75,000/- and so D11 and D12 are also liable for the suit claim and they may be directed ot pay the amount covered under the Insurance Policy.

(2.) Counsel for the appellants submitted that since the Insurance Companies are also liable to pay the amount since the stock and building have been insured with them, decree ought to have been passed against the Insurance Companies also and in fact Para-14 of the order has empowered the applicant Bank to realise the debt liability from all the defendants and as per para-14 of the order, the Insurance Companies are also liable for the suit claim and they must also be directed to pay that amount and they cannot be absolved of their liability and they must also be fastened with the liability and decree must be passed as against D11 and D12 also. Counsel for the respondent Bank submitted that no decree was passed as against the Insurance Companies and the DRT has no jurisdiction to decide with regard to the liability of the Insurance Companies and the order and decree also did not provided for any decree as against defendants 11 and 12 and D11 and D12 are not at all liable and the order passed by the PO, DRT, is not liable to be interfered with.

(3.) THIS is a case against the lender and the borrower and that has been rightly decided by the PO, DRT, directing issue of Recovery Certificate as against D1 to D10. The liability of the Insurance Company cannot be decided in this Forum. The PO, DRT, Ernakulam, rightly ordered issue of Recovery Certificate as against Dl to D10 and their assets. There is no merit and substance in this appeal.