IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TWENTY SEVENTH DAY OF APRIL TWO THOUSAND AND NINE PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO : 11816 of 2008 Between: State Bank of India, Thimmapur Branch, Mahabubnagar District, Rep. by its Branch Manager. ..... PETITIONER AND 1) The Debts Recovery Appellate Tribunal, Ministry of Finance, Government of India, Chennai, Rep. by its Registrar. 2) The Debts Recovery Tribunal, Ministry of Finance, Government of India, 5th Floor, Triveni Complex, Palance Heights Building, Abids, Hyderabad, Rep. by its Registrar. 3) M/s. Sharwani Enterprises, A Partnership Firm, Rep. by its Managing Partner, Sri Y. Ramulu, Office situated at Survey No. 1950, I.D.A., NH-7, Nadigaon Village, Kothur Mandal, Mahabubnagar District. 4) Y. Ramulu, S/o. Y. Dasaratham, Major, R/o. H.No. 10-119, Main Road, Shadnagar, Mahabubnagar District. 5) Y. Dasartham, S/o. Y. Narayana, Major, R/o. H.No. 10-119, Main Road, Shadnagar, Mahabubnagar District. 6) Y. Srinivas, S/o. Y. Dasaratham, Major, R/o. H.No. 10-119, Main Road, Shadnagar, Mahabubnagar District. 7) Y. Narsimhulu, S/o. Y. Dasaratham, Major, R/o. H.No. 10-119, Main Road, Shadnagar, Mahabubnagar District. 8) Y. Laxmaiah, S/o. Y. Dasaratham, Major, R/o. H.No. 10-119, Main Road, Shadnagar, Mahabubnagar District. 9) M/s. Raghavendra Commercial Corporation, Rep. by Managing Partner, Main Road, Shad Nagar, Mahabubnagar District. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a Writ, order or direction more particularly a Writ in the nature of Mandamus declaring the order dated 27-06-2007 in RA No. 40/2006 of the Hon'ble Debts Recovery Appellate Tribunal, Chennai as illegal to the extent of reducing the rate of interest from 15% per annum with quarterly rests to 6% per annum simple on the claim amount of Rs.42,01,257/- in O.A.No. 332/2002 of the Hon'ble Debts Recovery Tribunal, Hyderabad, and to pass such other order or orders as this Court may deem fit and proper in the circumstances of the case. Counsel for the Petitioner: MR.M.NARENDER REDDY Counsel for the Respondent No.: MR.A.RAJASHEKAR REDDY (ASST SOLICITOR GEN) The Division Bench of this Judgment follows Court made the following : on 3rd page THE HON'BLE MRS JUSTICE T.MEENA KUMARI A N D THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO : 11816 of 2008 O R D E R : (Per the Hon’ble Sri Justice Vilas V.Afzul Purkar) This writ petition is filed by the State Bank of India questioning the order of the Debts Recovery Appellate Tribunal, Chennai, in R.A.No.40/2006 dated 27.06.2007. 2. The facts in brief are that the petitioner-bank filed O.A.No.332/2002 before the Debts Recovery Tribunal seeking recovery of Rs.42,01,257/- with interest and costs from respondent Nos.3 to 8 herein. The said O.A. was allowed on contest by the Debts Recovery Tribunal against which an appeal in R.A.No.40/2006 was preferred by the borrowers before the Debts Recovery Appellate Tribunal, Chennai. In the aforesaid appeal, the Appellate Tribunal agreeing with the contentions of respondent Nos.3 to 6 modified the decree passed by the Debts Recovery Tribunal by reducing the rate of interest to 6% p.a. simple from 15% per annum to be compounded quarterly. Against that part of the order of the Appellate Tribunal, the present writ petition is filed. 3. After issuing notice to the parties in this writ petition, the respondent Nos.3 to 9, who are the borrowers and respondents before the Debts Recovery Tribunal, have appeared and filed counter affidavit. 4. We have heard both the learned counsel and as directed earlier an additional counter affidavit dated 20.04.2009 is also filed by the borrowers. 5. With a view to achieve quietus to the dispute and to settle the matter once for all, the respondents have proposed for modification of the order of the Appellate Tribunal, that they are prepared to pay simple interest @ 12% per annum and aforesaid suggestion was fairly accepted by the learned counsel for the petitioner. 6. In view of the said limited issue being the subject matter of the present writ petition, which is resolved amicably between the parties, we direct that the writ petition shall stand disposed of and the decree passed by the Debt Recovery Appellate Tribunal, Chennai, in R.A.No.40 of 2006 dated 27.06.2007 shall stand modified to the extent of awarding simple interest @ 12% per annum as against simple interest @ 6% per annum. 7. It is represented by the learned counsel for the respondents that in compliance with the directions of the Appellate Tribunal they have already paid substantial amount and the entire liability is wiped off. However, in view of the fact that the interest having been modified to 12% per annum simple as against granted earlier @ 6% per annum simple, four months time to pay the balance amount is sought. The said request is being reasonable, the same is accordingly granted. The respondents 3 to 6 shall pay the balance amount in terms of the present order within a period of four months from today. 8. With the aforesaid modification, the writ petition is disposed of. No costs. JUSTICE T.MEENA KUMARI JUSTICE VILAS V.AFZULPURKAR 27-04-2009. IsL / SuR ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1) 2 CD copies Form-NIC-OGS/WP{SPJS}