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2014 Supreme(Ori) 710

A.K.GOEL, A.K.RATH
Surya Prakash Sahoo – Appellant
Versus
Debts Recovery Appellate Tribunal – Respondent


Advocates:
For Petitioner:Ms. Aparna Das
For Opp.Parties:Mr. D. P. Sarangi, Advocate (for opp.party No.2)
Mrs. M. Jesthy, Advocate (for opp.party No.3)
Mr. S. K. Padhi, Sr. Advocate (for C.B.I.)

JUDGMENT

A.K. GOEL, C.J. : This petition seeks quashing of order dated 22.10.2009 passed by the Debts Recovery Appellate Tribunal, requiring the appellant to deposit a sum of Rs.5,00,000/- (Rupees five lakhs) as pre-deposit for entertaining the petitioner’s appeal against order Debt Recovery Tribunal issuing certificate of recovery against the petitioner as gurantor. The opposite party-State Bank of India initiated proceedings for recovery of the loan against Bibhuti Bhusan Swain-opposite party No.3 as Principal Debtor (in short ‘PD’) and Banamali Sahoo, the father of the petitioner as guarantor. It was stated that a loan of Rs. 15 lakhs was sanctioned in the year 2005 in favour of the PD and the guarantor executed the document to create equitable mortgage of his property on 5.2.2005. The cash credit limit was enhanced to Rs.20 lakhs on 8.3.2006 and the PD and the guarantor executed further documents. After availing the cash credit limit, PD failed to repay the loan amount which was classified as NPA from 1.3.2008. Application was filed before the Tribunal to recover a sum of Rs.22,62,890.00. The guarantor was declared ex parte and proceeding was contested by the PD. According to th






























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