RA 42/2018
1
IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI
Dated the 7th of December, 2023
PRESENT:
Hon’ble Mr. Justice S. Ravi Kumar
CHAIRPERSON
RA 42/2018
(OA 441/2013 on the file of DRT-1, Ernakulam)
Between
1. Mrs. Renuga Devi,
W/o. B.V.Rengaraj,
401, Main Road,
Kumarapalayam,
Bhavani Town, Tamil Nadu.
2. Ravindran,
S/o Aiyalu Naidu,
275-D, Railway Officers Quarters,
Poonamallee High Road,
Chennai, Tamil Nadu – 600 008.
3. Sridharan,
S/o Aiyalu Naidu,
Alagar Naickenpatty Village,
Uthamapalayam, Theni,
Tamil Nadu.
4. Ahalya Naidu,
D/o Aiyalu Naidu,
Alagar Naickenpatty Village,
Uthamapalayam, Theni,
Tamil Nadu.
RA 42/2018
2
5. Sudharsanan,
D/o Aiyalu Naidu,
Alagar Naickenpatty Village,
Uthamapalayam, Theni,
Tamil Nadu.
6. Lord Prabhasan,
S/o Aiyalu Naidu,
Alagar Naickenpatty Village,
Uthamapalayam, Theni,
Tamil Nadu.
7. B. V. Rangaraj,
S/o B.R. Venkatachalapathy,
401, Main Road,
Kumarapalayam,
Bhavani Town,
Tamil Nadu.
……. Appellants
AND
Tamilnad Mercantile Bank Ltd.,
Having its registered Office at Thoothukudi
And Branch among other places at Pannaipuram,
Uthamapalayam, Theni, Tamil Nadu.
…..Respondent
Counsel for Appellants
:
M/s. S.Sukumar
Counsel for Respondent
:
Mr. S. Sethuraman
RA 42/2018
3
1.
This Appeal is against Order dated 17.08.2017 of DRT-I,
Ernakulam in OA 441/2013.
2.
Brief facts leading to this Appeal are as follows:-
Respondent Bank filed Suit in OS No. 72/2006 before
Sub-Judge, Kattappanna for recovery of Rs.6,22,793/- with
interest and costs, and said Suit is decreed on 30.06.2010.
Appellants herein preferred an Appeal against said Order in
RFA No. 811/2011 before Hon’ble High Court of Kerala, and
said Appeal is dismissed on 26.02.2015. Bank filed EP before
Sub-Judge, Kattappanna, for recovery of Decree amount in
EP 34/2011.
But, Sub-judge dismissed said EP on the
ground that it has no pecuniary jurisdiction, as EP amount
crossed Rs.10 Lakhs, by relying on judgement of Hon’ble High
Court of Kerala, granting liberty to Bank to approach DRT for
execution.
Bank filed Application under Section 31A of
Recovery of Debts and Bankruptcy Act, 1993 [hereinafter
referred to as RDB Act, 1993] before DRT and Tribunal below
4
allowed said Application and ordered for issue of Recovery
Certificate in terms of Decree dated 30.06.2010 in OS No.
72/2006 of Sub Court, Kattappanna; aggrieved by the same,
present Appeal is preferred.
3.
Advocate for Appellants mainly contended that the Order
of Tribunal below is not legal as Section 31A of RDB Act, 1993,
has no application to the case on hand.
He further
submitted that as per the definition of ‘debt’ under Section 2(g)
of RDB Act, 1993, Decree would also fall within the definition
of ‘debt’, therefore, Bank has to file an Application under
Section 19 (1) of RDB Act, 1993, and hence, matter has to be
remitted back to the Tribunal below to treat the Application
under Section 19 (1) of RDB Act, 1993, and decide the same.
4.
Advocate
for
Bank
opposed
said
contention
and
submitted that, if the Application of Bank is to be treated as
an Application under Section 19(1) of RDB Act, 1993, it would
amount to setting the clock back and nullifying the Decree
passed by Civil Court, which is confirmed by Hon’ble High
5
Court of Kerala and became final.
He further submitted, as
the amount exceeded Rs.10 Lakhs by then, EP Court rightly
directed Bank to approach DRT, and Tribunal below, by
considering the issue with reference to the settled proposition
of law, issued Recovery Certificate, and there is no illegality in
the Order dated 17.08.2017.
5.
First and foremost contention of Appellants is that
Section 31A of RDB Act, 1993, which came into force by way
of amendment with effect from 17.01.2000, has no application
to the present case. He submitted, according to said provision,
Decree passed by any Court prior to 17.01.2000, which have
not been executed, then, Decree holder can apply to the
Tribunal for Recovery Certificate.
As Decree in this case is
long after the amendment, Tribunal cannot issue a Recovery
Certificate.
6.
On the other hand, it is the contention of Bank that in a
similar set of facts, Hon’ble High Court of Kerala upheld
6
Recovery Certificate issued by Tribunal, and relying on that
judgement, Tribunal below ordered Recovery Certificate.
7.
I have perused the impugned Order. In para 9, Tribunal
below, while referring to the judgement of Hon’ble High Court
of Kerala in V.D. Mathew Vs. State Bank of Travancore,
reported in (2008) 3 KLT 30, held that, Bank is entitled for
issue of Recovery Certificate.
I have perused the judgement
of Hon’ble High Court of Kerala. In that case, the Decree was
passed on 10.12.2004, which is subsequent to 17.01.2000,
the day on which amendment came into force.
When Bank
approached the Tribunal for issue of Recovery Certificate, as
the amount was beyond Rs.10 Lakhs, and Tribunal below
issued
Recovery
Certificate,
which
is
challenged
before
Hon’ble High Court, and Hon’ble High Court upheld the Order
of Tribunal.
So, the objection of Appellants cannot be
accepted in view of the above referred judgement.
8.
Other contention of Appellants is that, Bank has to file
an Application under Section 19(1) of RDB Act, 1993, for
7
recovery, since the definition of ‘debt’ includes the Decree.
Advocate for Bank opposed said proposition contending, it
amounts t
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