J.M. Malik, Chairperson—This appeal is directed against the order of D.R.T. dated 15.9.2005. The learned D.R.T. issued the recovery certificate in favour of the respondent bank for a sum of Rs.79,82,568.86 together with pendente lite and future interest @ 13.84% per annum with quarterly rests with costs against the defendant Nos. 1 to 3, who are arrayed as appellants in this case, on the application moved by the bank under Section 19 of Debts Recovery Act, 1993.

2. In the appeal, appellants have made the following key averment. The action taken by the bank for recovery of their dues was at a premature stage. The recovery application was filed without declaring the account ‘Non-Performing Asset’ (in short NPA). The R.B.I. has made certain norms for declaring an account as NPA and the said norms are the directives, which are required to be followed strictly by the banks and other Financial Institutions before initiating the proceedings for recovery of their dues. Furthermore, an account can be declared as NPA if the period of six months has elapsed from the last entry made in the book of accounts. In the instant case, the said directive was given the go by. In the instant ca