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NON-REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 786 OF 2016 (Arising out of SLP (C) No. 20607 of 2010)

D.NAGESWAR RAO  APPELLANT                                 VERSUS

S.B.I & ORS.                               RESPONDENTS

J U D G M E N T  KURIAN,J.

1. Leave granted. 2. The  appellant  committed  default  in  repaying  the  loan  availed by him from the Respondent No.1-Bank.  Consequently,  the Bank initiated steps under The Recovery of Debts Due to  Banks and Financial Institutions Act, 1993 to recover the loan  amount and obtained a decree for an amount of Rs.92,94,183/-. 3. Since  the  appellant  could  not  satisfy  the  decreetal  amount,  the  Bank  proceeded  further  and  put  the  property  to  auction.   Respondent  No.3  is  the  auction  purchaser.   The  property was auctioned for an amount of Rs.48,80,000/-.  The  Respondent  No.3  had  deposited  the  entire  amount  of  Rs.48,80,000/-  before  the  Debt  Recovery  Tribunal,  though  belatedly, and the same is kept in an interest bearing account. 4.  When  the  matter  came  up  on  an  earlier  occasion,  we  directed the learned counsel for the Bank to take instruction  

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as to what is the amount outstanding as on today.  On written  instruction it is informed that after adjusting the amount of  Rs.60,00,000/- which the appellant deposited in pursuance of  the order of this Court, outstanding dues as on today is Rs.  1,02,06,815/-. 5.    The learned counsel for the appellant submits that the  appellant may be permitted to pay the said amount.  The only  indulgence  sought  is  that  he  may  be  permitted  to  pay  the  outstanding amount in installments. 6. Though, the request is seriously opposed by the learned  counsel for the Bank, having regard to the past conduct of the  appellant, in the interest of justice, we propose to give one  more opportunity to the appellant.  After all, the bank need  only get its money, even if the auction is confirmed in favour  of the respondent auction purchaser, it will not meet even 1/3  of the dues.  The appellant undertakes that the amount can be  paid in monthly installment of Rs.15,00,000/-.

7. The appeal is hence, disposed of as follows: 1)  The appellant will clear the outstanding dues of  Rs 1,02,06,815/-  by payment in monthly installments at  the rate of Rs. 15,00,000/- per month to be paid by 5th  of every month starting from March, 2016.

2) In case there is any default of two consecutive  installments, we make it clear that the appellant shall  not be entitled for any indulgence and his appeal will  stand dismissed and it will be open to the Bank to  proceed with the matter in accordance with law.

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3) The deposit made by Respondent No.3 will continue  before  the  Debt  Recovery  Tribunal  till  the  whole  outstanding dues are cleared by the appellant as above.  In case, the appellant clears the amount as per this  Judgment,  the  appellant  shall  pay  an  amount  of  Rs.5,00,000/- towards compensation to Respondent No.3  and the Bank shall also pay an amount of Rs.5,00,000/-  towards compensation to respondent No.3. The deposit  made  by  the  auction  purchaser,  along  with  interest  accrued shall be returned to him.  The payment as above  shall  be  made  within  one  month  from  the  date  of  appellant clearing the dues to the Bank.     

   ......................J.      [KURIAN JOSEPH]  

  .......................J.     [ROHINTON FALI NARIMAN

NEW DELHI; JANUARY 29, 2016

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