Hon’ble Dilip Gupta, J.—Writ Petition No. 29076 of 2011 has been filed by the Union Bank of India, Sarvodaya Nagar, Kanpur (hereinafter referred to as the ‘Bank’) for quashing the order dated 18th February, 2011 passed by the Chairperson of the Debts Recovery Appellate Tribunal, Allahabad (hereinafter referred to as the ‘Appellate Tribunal’) in Appeal No. 614 of 2005 filed by respondent Nos. 2 and 3-Arun Kapoor and Anant Ram Kapoor against the order dated 10th August, 2005 passed by the Debts Recovery Tribunal, Allahabad (hereinafter referred to as the ‘Tribunal’) in T.A. No. 1415 of 2000.

2. Writ Petition No. 29083 of 2011 has been filed by the Bank for quashing the order dated 18th February, 2011 passed by Appellate Tribunal in Appeal No. 663 of 2005 filed by Atul Kapoor and Smt. Asha Kapoor against the order dated 10th August, 2005 passed by the Tribunal in T. A. No. 1415 of 2000.

3. It transpires that M/s Asha Edible Oils Private Limited-respondent No. 6 (hereinafter referred to as the ‘Company’) was granted credit facilities by the Bank. Respondent Nos. 2 to 5 are the Guarantors to the said credit facilities provided by the Bank but as the Company defaulted in payment, Original Application under Section 19 of the Recovery of Debts Due to the Bank and Financial Institutions Act, 1993 (hereinafter referred to as the ‘Act’) was filed by the Bank before the Debts Recovery Tribunal, Jabalpur for recovery of Rs. 12,38,91,472.00 with pendentilite and future interest. This application was subsequently transferred to Debts Recovery Tribunal, Allahabad and was numbered as T.A. No. 1415 of 2000. In the meantime, an order dated 5th October, 1999 was passed by the High Court in Company Application No. 5 of 1996 and the Company was directed to be wound up and Official Liquidator was appointed to proceed in accordance with law.

4. The Bank filed its claim for an amount of Rs. 12,38,91,472.00 with interest, pendentilite and future before the Official Liquidator. The Bank, however, filed its willingness before the Official Liquidator to accept amount of Rs. 78,16,428.42 towards full and final settlement of its claim and thereafter the order dated 2nd July, 2003 was passed by the Company Judge directing the Official Liquidator to make the payment to the Bank. The order is as follows :

“The official liquidator in his report No. 301 of 2002 has submitted that he may be allowed to disburse the amount of Rs. Rs. 78,16,428.42p. to the Union Bank of India towards full and final settlement of the claim of the bank submitted before O.L. The Union Bank of India by its application No. 83970 of 2003 dated 6.5.2003 has agreed to accept the amount towards full and final settlement of its claim. In view of this situation and lack of objection by any other party the official liquidator is directed to make the said payment to the bank.”

In terms of the aforesaid order, an amount of Rs. 78,16,428.42 was paid to the Bank.

5. T.A. No. 1415 of 2000 filed by the Bank, which was pending before the Tribunal, was finally allowed by the Tribunal by the order dated 10th August, 2005 against the defendant Nos. 2 to 5 but was dismissed against the Company. A recovery certificate to the tune of Rs. 12,38,91,472.00 subject to adjustment of Rs. 78,16,428.42, which was received by the Bank from the Official Liquidator, was issued with interest at the rate of Rs. 17.5% per annum with quarterly rests from the date of filling of the application till its realisation.

6. It is against this order dated 10th August, 2005 that two appeals were filed under Section 20 of the Act. Appeal No. 614 of 2005 was filed by Arun Kapoor and Anant Ram Kapoor (defendant Nos. 2 and 3 in T.A. No. 1415 of 2000 and respondent Nos. 2 and 3 in Writ Petition No. 29076 of 2011), while Appeal No. 663 of 2005 was filed by Atul Kapoor and Asha Kapoor (defendant Nos. 4 and 5 in T.A. No. 1415 of 2000 and respondent Nos. 4 and 5 in Writ Petition No. 29083 of 2011). These two appeals were allowed by a comm