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IN THE HIGH COURT OF JUDICATURE AT MADRAS
S. MANIKUMAR, V. BHAVANI SUBBAROYAN, JJ.
State Bank of India – Petitioner
Vs
M/s. M.P. Shantex Private Limited & Ors. – Respondents
Writ Petition No.27073 of 2017
Decided On : 22-08-2017
Recovery of Debts Due to the Bank and Financial Institution Act, 1993 - Section 25 - SARFAESI Act - Section 13 (2) and (4) - Recovery Certificate - Loan - Defendants jointly and severally to pay to first applicant Bank a sum together with interest thereon at rate of 14.00% p.a., with monthly rests under Cash Credit Account No. from date of this Application till the date of payment in full on or before a date to be specified and to draw a Recovery Certificate for same - Defendants jointly and severally to pay to first applicant Bank a sum oftogether with interest thereon at rate of 14.25% p.a., with monthly rests under term Loan -I Account No. from date of this Application till date of payment in full on or before a date of this Application till date of payment in full on or before a date to be specified and to draw a Recovery Certificate for same - Pass an order directing defendants jointly and severally to pay to first applicant Bank a sum together with interest thereon at rate of 14.25% p.a., with monthly rests under Term Loan - II Account No. from date of this Application till date of payment in full, on or before a date to be specified and to draw a Recovery Certificate for same – Held, authorised officer in his P/A has stated that pending proceedings A/B has taken SARFAESI proceedings and mortgaged property which is more fully described in schedule B property No.3 in main application has been sold in public auction on to one and sale proceeds have been appropriated towards loan account after deducting Rs.1 lakh towards TDS - Hence, in view of affidavit averments this petition is allowed. Part satisfaction of Rs.1 crore is recorded - In view of part satisfaction being recorded - Learned counsel for petitioner made submissions and also invited Section 19 (24) of RDDB Act and FI Act and further contended that even original Application instituted by Bank should be disposed of as expeditiously as possible and within 120 days from date of receipt of application, and whereas in case on hand, I.A.No. has not been disposed of even after expiry of 180 days from date of filing and therefore prayed for relief sought for this Court is not inclined to issue any mandamus for reason that Tribunals are flooded with innumerable applications filed by Banks or Financial Institutions for recovery of Debts due and payable and simultaneously there are also applications filed by borrowers/guarantors or any person aggrieved by any of measures taken - Court only state that Tribunals have to consider nature of relief sought for in interim applications and wherever there is urgency same have to be given priority - Having regard to above, Court direct Tribunal to consider grievance expressed by writ petitioner to take appropriate decision - With above directions, this writ petition is disposed of.
S. Manikumar, J.
Material on record, discloses that on 16/7/2008, the respondent has availed credit facility from State Bank of India, Coimbatore. Arrears in December 2013 was stated to be 300 crores. Bank has issued Demand Notice, under Section 13 (2) of the SARFAESI Act and also possession notice, under Section 13 (4) of the Act. Thereafter, Bank has filed O.A.No.368 of 2014, on the file of the Debts Recovery Tribunal, Coimbatore, for the following prayers.
(a). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.116,08,69,104.00 together with interest thereon at the rate of 14.00% p.a., with monthly rests under the Cash Credit Account No.30440299561 from the date of this Application till the date of payment in full, on or before a date to be specified and to draw a Recovery Certificate for the same.
(b). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.2,56,07,699.00 together with interest thereon at the rate of 14.25% p.a., with monthly rests under the term Loan -I Account No.30449341798 from the date of this Application till the date of payment in full, on or before a date of this Application till the date of payment in full, on or before a date to be specified and to draw a Recovery Certificate for the same.
(c). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.1,07,60,640.00 together with interest thereon at the rate of 14.25% p.a., with monthly rests under the Term Loan - II Account No.30449398235 from the date of this Application till the date of payment in full, on or before a date to be specified and to draw a Recovery Certificate for the same.
(d). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.17,70,75,840.00 together with interest thereon at the rate of 14.25% p.a., with monthly rests under the Term Loan - III Account No.31145219993 from the date of this application till the date of payment in full, on or before a date to be specified and to draw a recovery certificate for the same.
(e). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.5,33,68,353.00 together with interest thereon at the rate of 14.25% per annum with monthly rests under the Term Loan - IV (CL) Account No.31223720265 from the date of this application till the date of payment in full, on or before a date to be specified and to draw a recovery certificate for the same.
(f). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.18,94,054.00 together with interest thereon at the rateof 14.25% p.a., with monthly rests under the Term Loan - V Account No.30040062386 from the date of this application till the date of payment in full, on or before a date to be specified and to draw a recovery certificate for the same.
(g). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.3,63,16,533.00 together with interest thereon at the rate of 14.25% p.a., with monthly rests under the term Loan – VI Account No.32956419982 from the date of this application till the date of payment in full, on or before a date to be specified and to draw a recovery certificate for the same.
(h). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.89,96,127.00 together with interest thereon at the rate of 14.25% p.a., with monthly rests under the term loan – VII Account No.32956617258 from the date of this application till the date of payment in full, on or before a date to be specified and to draw a recovery certificate for the same.
(i). to pass an order directing the defendants jointly and severally to pay to the first applicant Bank a sum of Rs.5,89,65,166.00 together with interest thereon at the rate of 14.25
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