High Court Patna High Court - Orders

M/S Laxman Wire Industries Ltd vs Central Bank Of India &Amp; Anr on 1 September, 2010

Patna High Court – Orders
M/S Laxman Wire Industries Ltd vs Central Bank Of India &Amp; Anr on 1 September, 2010
            IN THE HIGH COURT OF JUDICATURE AT PATNA
                        CWJC No.14009 of 2010
                 M/S LAXMAN WIRE INDUSTRIES LTD
                               Versus
                   CENTRAL BANK OF INDIA & ANR
                              -----------

3. 01.9.2010 The petitioner seeks quashing of the order dated

31.5.2010 passed by respondent No.2, the Presiding

Officer, Debt Recovery Tribunal, Patna, by which he has

allowed the Appeal No. 10 of 2009 filed by the respondent

Central Bank of India and set aside the order dated

13.3.2000 passed by the Recovery Officer.

Learned counsel for the petitioner submits that by

order dated 13.3.2000 the Recovery Officer had held that

in terms of the certificate issued allowing interest at the

rate of 12% per annum the same amounted to the allowing

of simple interest and not compound interest. It is urged by

learned counsel that the said order was not challenged by

the Bank for almost nine years until filing of Appeal No.

10 of 2009 which was hopelessly barred by limitation. The

matter has been considered by the D.R.T. and it has been

ultimately held that the pendentelite and future interest is

to be calculated at the rate of 12% per annum with annual

rest till its realization.

2

It is also pointed out by learned counsels for the

parties that there have been several rounds of litigation in

the matter and subsequent to the order of the D.R.T. the

parties had agreed to take the matter to the Lok Adalat,

which had disposed of the same by order dated

27.12.2005. The said order has been challenged by the

respondent Central Bank in C.W.J.C.No.2587 of 2007. It

is stated that the petitioner also earlier filed

C.W.J.C.No.14722 of 2008 challenging the proclamation

of sale made by the Recovery Officer of the D.R.T., Patna.

The same was ultimately dismissed and the L.P.A. against

the same was also dismissed as withdrawn after some

arguments on the prayer of learned counsel for the

appellant-petitioner so that he may approach the

appropriate forum. Civil Review No. 336 of 2009 filed

subsequently was also dismissed as not pressed with the

observation that the dismissal of the review application

will not come in the way of the petitioner to raise all such

facts which may be required in adjudication of

C.W.J.C.No.2587 of 2007 filed on behalf of the Central

Bank of India.

3

In the aforesaid facts and circumstances, this Court is

of the view that the present matter should also be heard

and disposed of along with C.W.J.C.No.2587 of 2007. It is

so directed.

Learned counsel for the Central Bank states that in

the said case notices have been issued and there is

direction for listing the matter after service of notice.

Learned counsel for the petitioner states that he will be

filing appearance on behalf of the petitioner herein in that

case within one week from today.

Put up this matter along with C.W.J.C.No.2587 of

2007 among ‘0’ cases in the main list on 15th September,

2010.

In the meantime, the recovery proceeding in RP Case

No.79/99 against the petitioner shall remain stayed.

(Ramesh Kumar Datta,J.)

Spal/