IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT CHENNAI Dated the 27th of June, 2025 Justice PRESENT: Hon’ble Mr. G. Chandrasekharan CHAIRPERSON R.A.:173/2017 (OA 53/2004 on the file of DRT-II, Chennai))

Between

1. M/s. H.M. Hajee Moosa, 60/1, Godown Street, Chennai 600 001, Rep. by its Managing Partners, Abdul Razak Osman, Mohamed Hani Osman.

2. Ms. Nargis Abdul Razak, No. 15, Rutland Gate, 5^th Street, Nungambakkam, Chennai – 600 034.

3. Mr. Mohomed Hanif Osman, No. 15, Rutland Gate, 5^th Street, Nungambakkam, Chennai – 600 034.

4. Mrs. Farzana Hanif, No. 15, Rutland Gate, 5^th Street, Nungambakkam, Chennai – 600 034.

5. Ms. Rizwana Abdul Razak, No. 15, Rutland Gate, 5^th Street, Nungambakkam, Chennai – 600 034.

6. Mr. Abdul Razak Osman, No. 15, Rutland Gate, 5^th Street, Nungambakkam, Chennai – 600 034. 7. M/s. Hamosons, Rep. by A3 and A6, H.M. Centre, No. 15 A, Nungambakkam High Road, Chennai – 600 034.

…… Appellants And

1. The Chief Manager, Indian Bank, Assets Recovery Management Branch-II, EthirajSalai, Egmore, Chennai – 600 008.

Also at Indian Bank, Madras George Town Branch, No.155, Thambu Chetty Street, Chennai – 600 001.

2. Mrs. Zubeida Bai Osman (Since Deceased), 3. Mrs. Munira Haroon, W/o Mr. Haroon A. Tayub, 49/A, Bharathi Ulla Road, Race Course, Madurai – 625 002.

Old Address:

Mrs. Munira Haroon, W/o Mr. Haroon A. Tayub, Plot No. 89, Park Town Colony, K.K. Nagar, Madurai – 625 020.

4. Mrs. Shireen Iqbal, W/o Mr. Iqbal Abdulah, P.B. No. 2756, Ajman, United Arab Emirates.

( R3 and R4 are given up).

…… Respondents

Counsel for Appellants : M/s. Vignesh Venkatachalam

Counsel for 1st Respondent : M/s. Aiyar and Dolia

ORDER

1. This Appeal is filed against the order dated 08.05.2013 passed by Learned Presiding Officer, DRT -II, Chennai, in OA

53/2004.

2. Appellants are the Defendant Nos. 1, 3, 4, 5, 6, 7 and 10 in the OA. First Respondent Bank filed OA 53/2004 against the Defendants, for recovery of Rs.14,38,694.48p with future interest at 19.89%, with quarterly rests, in terms of Final Decree dated 13.11.2002, passed by Learned II Additional Judge, City Civil Court, Chennai in O.S. No. 2578/1999 from 20.02.2004 till the date of realization, with costs. The OA was hotly contested by the Appellants before the Tribunal. After elaborate enquiry, Learned Presiding Officer passed order that the 1^st Respondent Bank is entitled to Recovery Certificate, to recover a sum of Rs.4,86,134.13p with interest at the rate of 19.89% p.a. with quarterly rests on Rs.4,86,134.13p from 08.09.1998 ( date of filing of the Suit) till the date of recovery in full, after deducting the proportionate amount from Rs.2.35 Crores and Rs.3,91,355.13p, out of total sale proceeds of Rs.20.50 Crores received by Bank, by sale of the property described in Schedule ‘B’ to the OA, with costs of Rs.36,461/- awarded in the Suit in the terms of Preliminary Decree dated 27.07.2000 and with the costs of the present OA.

3. Though several grounds are raised in the Appeals, Learned Counsel for the Appellants restricted his arguments only with respect to two grounds; i) the interest ordered at 19.89% p.a. with quarterly rests, is exorbitant and unconscionable and ii) without filing proof in support of the claim of costs amount, excessive amount is claimed as costs.

4. Learned Counsel for Appellants submitted that Section 19(20) of Recovery of Debts and Bankruptcy Act, 1993 (RDB Act, 1993), gives power to the Tribunal to order interest. Section 34 of the CPC gives discretion to the Court to award interest not exceeding 6% p.a. from the date of decree till the date of payments.

5. Learned Counsel for Appellants submitted that based on these provisions, Learned Presiding Officer ought to have reduced the interest from 19.89% from the date of OA and ought to have ordered interest at 6% p.a. from the date of order till the date of realization. It is the further submission of Learned Counsel for the Appellants that originally, the Bank filed a Suit before Learned II Additional Judge, City Civil Court, i