IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 8TH JULY 2009 / 17TH ASHADHA 1931 WP(C).No. 13744 of 2007(J) -------------------------------------- A.NO.9/2006 of DEBT RECOVERY TRIBUNAL, ERNAKULAM ............................................................. PETITIONER(S): --------------------- R.PRIYA, MANAGING DIRECTOR, PRIYA RUBBER ESTATES & PLANTATIONS (P) LTD., PLOT NO.1662, ANNA NAGAR WEST, CHENNAI- 40. BY ADVS. SRI.DR.K.P.SATHEESAN SRI.K.K.GOPINATHAN NAIR RESPONDENT(S): ------------------------- 1. THE RECOVERY OFFICER, DEBT RECOVERY TRIBUNAL, ERNAKULAM. 2. THE BRANCH MANAGER, CANARA BANK, CANTONMENT BRANCH, THIRUVANANTHAPURAM. 3. M/S.VELLAPPALLY TRADERS PVT.LTD., VELLAPPALLY BUILDINGS, VELLAPPALLY LANE, KOTTAYAM, REPRESENTED BY ITS MANAGING DIRECTOR, MATHEW VELLAPPALLY. BY ADVS. SRI.JOSEPH MARKOSE, SENIOR ADVOCATE FOR R3 SRI.P.GOPINATH MENON, SC, CANARA BANK FOR R2 SRI.MATHEWS K.UTHUPPACHAN FOR R3 SRI.B.KRISHNA MANI FOR ADDL.R4 SRI.V.K.SHAMSUDHEEN, GOVERNMENT PLEADER. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 08/07/2009, ALONG WITH WPC NO. 24482 OF 2004, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 13744 of 2007(J) A P P E N D I X EXHIBITS FOR THE PETITIONER :- EXT.P1 : COPY OF THE ORDER DATED 20.2.2006 IN W.P.(c)No.4927/2006. EXT.P2 : COPY OF THE ORDER DATED 28.3.2006 IN W.P.(c)No.4927/2006. EXT.P3 : COPY OF THE NOTICE ISSUED BY THE FIRST RESPONDENT ON 29.3.2006. EXT.P4 : COPY OF THE JUDGMENT DATED 31.3.2006 IN W.P.(c)No.4927/2006. EXT.P5 : COPY OF THE NOTICE PUBLISHED BY THE RECOVERY OFFICER DATED 29.3.2006. EXT.P6 : COPY OF THE BIDDING PROCEDURE SHEET OF THE RECOVERY OFFICER DATED 30.3.2006. EXT.P7 : COPY OF THE ORDER DATED 4.7.2006 IN W.P.(c)No.17283/2006. EXT.P8 : COPY OF THE PETITION ALONG WITH THE AFFIDAVIT IN I.A.No.14578/2006 IN W.P.(c)No.17283/2006. EXT.P9 : COPY OF THE JUDGMENT DATED 17.10.2006 IN W.P.(c)No.17283/2006. EXT.P10: COPY OF THE PROCEEDINGS FROM 5.5.2006 TO 13.4.2007 IN APPEAL No.9/2006 OF THE DRT, ERNAKULAM. EXT.P11: COPY OF THE FINAL ORDER IN APPEAL No.9/2006 OF THE DRT, ERNAKULAM. EXT.P12: COPY OF THE PAYMENT SLIP ISSUED BY CANARA BANK DATED 25.6.2007. EXT.P13 : COPY OF THE JUDGMENT DATED 5.2.2009 IN W.A.No.2003/2007. EXHIBITS FOR THE RESPONDENTS : EXT.R3(a) : COPY OF STATEMENT FILED BY THE CANARA BANK BEFORE THIS HONOURABLE COURT IN W.P.(c)No.4927 OF 2006. //TRUE COPY// P.A.TO JUDGE ami C.N.RAMACHANDRAN NAIR,J. -------------------------------------------- W.P.C. NO. 13744 OF 2007 -------------------------------------------- Dated this the 23rd day of July, 2007 O R D E R The sale of petitioner's property by the first respondent in favour of the third respondent for Rs. 1.77 crores, which is confirmed by DRT, is under challenge. The State has a claim of over Rs. 1 crore over the very same property. The sale proceeds obtained also falls short of Rs. 1 crore to discharge the bank's liability, which is above Rs. 2.7 crores. In the circumstances, this Court felt that the property should be resold for realisation of better price snot only to protect petitioner but the second respondent which is a nationalised bank and for meeting the tax liability due to the State. Even though sale was again ordered and the Bank has notified the property for sale on 25.7.2007, counsel for the petitioner submitted that petitioner has submitted a proposal for settling the liability with the Bank and will also clear the arrears of tax due to State. Petitioner has further offered to pay to the third respondent the amount deposited by them and along with it a reasonable compensation. In view of the proposal submitted by the petitioner for 2 settlement of liability due to second respondent-Bank under OTS scheme, I feel sale can be extended on further condition that petitioner will release the amount deposited under interim orders of this Court, which is around Rs. 95 lakhs for the Bank to adjust the same against demand and to convey the balance liability due under the OTS scheme from the petitioner. After payment is made by the petitioner as above, second respondent will release the amount deposited by the third respondent together with accrued interest and give a statement of interest payment to the petitioner. Petitioner will pay to the third respondent so much of the amount to make up the interest to 15% per annum from the date of deposit till date of payment by the Bank to the third respondent. The payment of balance interest to the third respondent should be made by the petitioner on or before 31.8.2007. Government Pleader will file a statement about the liability due to the State from the petitioner for ordering payment in favour of the State. Post on 4.9.2007 Hand over the order to counsel on both sides. (C.N.RAMACHANDRAN NAIR) Judge 3