DEBTS RECOVERY APPELLATE TRIBUNAL, DELHI

Misc. Appeal No.405/2018

(Arising out of O.A. No.15/2008 decided by DRT-II, Delhi)

Punjab National Bank

...........Appellant

Vs.

1. M/s Modipon Ltd.

2. Shri M.K. Modi

............Respondents

20.08.2019

CORAM:- Mr. Justice P.K. Bhasin, Chairperson

Appearances:

Mr. Sanjay Bajaj, advocate for the appellant

Sh. VivekSibal, Mr. Yash Patel and Mr. AbhayChauhan, advocates

for the respondents

ORDER

The appellant Bank is seriously aggrieved by an order dated

30.08.2018 passed by the learned Presiding Officer of the DRT-II, Delhi

Original Application No.15/2018 (O.A.) which stood disposed of four

years back. According to the appellant Bank9s case pleaded in its

Memorandum of Appeal as well as put forth during the course of

hearing of this appeal by its learned counsel the impugned order

passed by the learned Presiding Officer in a disposed of matter, when

he had become functus officioafter disposal of the Bank9s O.A. had

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already been disposed of on the basis of a settlement between the

parties, has caused loss of crores of public money to the 8public

exchequer9.The impugned order as per the submissionsof the learned

counsel for the appellant was passed on a miscellaneous application

moved by the respondents herein which was totally misconceived and

ill advised application and the learned Presiding Officer was persuaded

to believe that he could pass any order even in a matter which was

disposed of finally by a consent order on a joint application which had

been moved by the O.A. applicant and the two defendants in the O.A.

and he had become functus officio.

2. The appellant Bank had filed O.A. in the year 2008 for recovery a

huge amount of Rs.24,33,92,023.76 against respondents herein. Five

other financial institutions were also impleaded as pro-forma

defendants. The O.A. had remained pending for six years and then

without a full trial the appellant and two contesting defendants entered

into a compromise under which the respondents-defendants were to

pay Rs.19 crores. To have the O.A. disposed of as per that compromise

a joint application no. 310/2014 was moved in the DRT. On 25.04.2014

the DRT disposed of the O.A. as settled. The short order passed on that

date reads as under:-

<Compromise Application I.A. No. 310/2014 has been filed. The

room.=

3. Thereafter the formal recovery certificate was drawn up on 29^th

April, 2014 and the same reads as under:-

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in terms of the compromise. Disposing of this application, it is

ordered that the compromise application shall form part of the

recovery certificate. The applicant shall be entitled to recover the

debt under OTS in terms of Joint Application dated 25.04.2014 and

registered as IA No. 310/2014 in this Tribunal from D1 to D2 jointly &

In case the entire amount of OTS is not paid to the applicant by

defendants within the stipulated period i.e. by 28.03.2015, the

applicant shall be entitled to recover entire amount of debt as

claimed in OA no. 015/2008 from defendants togetherwith

pendentlite, future interest and other charges thereon till

payment/and or realization in full. In the event of payment of the

entire OTS amount as per compromise application, the Recovery

Certificate would be deemed to be satisfied.

Act, 1993 from the above named Certificate Debtors.=

4. The joint application moved by the parties which contained the

terms of settlement reads as under:-

That the applicant bank had filed the above noted Original

Application for recovery of 24,33,92,023.76p (Rupees Twenty Four

Crores Thirty Three Lacs Ninety Two Thousand & Twenty Three and

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paiseSeventy Six only) which is pending before this Hon’ble Tribunal

and is fixed for 25.04.2014 for final argument.

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That in case the defendants comply with the conditions as

stipula