IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN WEDNESDAY, THE 23RD NOVEMBER 2011 / 2ND AGRAHAYANA 1933 OP (DRT).No. 2784 of 2011(O) ------------------------------------------ AGAINST THE ORDER DATED 05/08/2011 IN IA 1481/2011 IN SA.140/2011 of DEBT RECOVERY TRIBUNAL, ERNAKULAM .................... PETITIONER ------------------- SHAJU SEBASTIAN, S/O.CHIRAYATH SEBASTIAN, EAST CHALAKUDY VILLAGE AND DESOM, THRISSUR DISTRICT. BY ADV. SRI.T.N.MANOJ RESPONDENT(S): --------------------------- 1. THE AUTHORIZED OFFICER, SYNDICATE BANK, REGIONAL OFFICE, PIONEER TOWERS, SHANMUGHAM ROAD, ERNAKULAM – 682 031. 2. SYNDICATE BANK, CHALAKUDY BRANCH, PAUL ARCADE, RAILWAY STATION ROAD, CHALAKUDY REPRESENTED BY ITS MANAGER,PIN- 680 307. 3. BIJU M.R., S/O.LATE M.N.RAJU, MAZHUVANPILLY HOUSE, KOODAPUZHA EAST CHALAKUDY.PIN- 680 307. 4. BINU M.R., S/O.LATE M.N.RAJU, MAZHUVANPILLY HOUSE, KOODAPUZHA EAST CHALAKUDY.PIN- 680 307. 5. THE DEBT RECOVERY TRIBUNAL, ERNAKULAM -PIN- 682 035. R1 & R2 BY ADV.SRI.R.S.KALKURA,SC R3 BY ADV. SRI.V.M.KRISHNAKUMAR SMT.P.R.REENA THIS OP (DEBT RECOVERY TRIBUNAL) HAVING BEEN FINALLY HEARD ON 23/11/2011,ALONG WITH WPC NO. 27774 OF 2011 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts OP(DRT)NO.2784/2011 APPENDIX PETITIONER'S EXHIBITS: P1 COPY OF THE ADVERTISEMENT IN MALAYALA MANORAMA DATED 10/6/2011. P2 COPY OF THE RECEIPT ISSUED BY 2ND RESPONDENT. P3 COPY OF THE LETTER DATED 12/8/2011 OF THE 2ND RESPONDENT. P4 COPY OF THE ORDER DATED 5/8/2011 OF THE DEBT RECOVERY TRIBUNAL. P5 COPY OF THE OBJECTIONS DATED 17/8/2011 FILED BY PETITIONER. RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.A.TO.JUDGE sts S. SIRI JAGAN, J. - - - - - - - - - - - - - - - - - - - - - - - O.P. (DRT) No.2784 & W.P.(C)No.27774 of 2011 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 23rd day of November, 2011 J U D G M E N T These two petitions are filed in respect of proceedings initiated by the Syndicate Bank against the petitioner in W.P. (C) No.27774/2011, under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act in which the properties belonging to that petitioner was sold to the petitioner in O.P. (DRT) No.2784/2011. O.P. (DRT) No.2784/2011 has been filed by the purchaser of the property challenging the order of the Debts Recovery Tribunal regarding the fixation of up set price in the sale proceedings under the Act. W.P (C) No.27774/2011 is filed by the borrower seeking permission to pay off the amounts due from him to the Bank so as to enable him to redeem his property. It is now admitted by all parties before me that the borrower has paid off the entire amounts due to the bank, on 15.11.2011. It is also O.P. (DRT) No.2784 & W.P.(C)No.27774 of 2011 -2- submitted that the 25% of the sale price paid by the purchaser has already been returned by the Bank to him. The bank is willing to close the account since they have already received the money due to them from the borrower. As such, the only issue remaining to be considered is how the purchaser's grievances have to be redressed. Admittedly, he has parted with considerable sum of money and use of that money was lost to him for at least sometime. He also had to incur expenses for the litigation before the Debts Recovery Tribunal and this Court. Therefore, appropriate compensation has to be given to the borrower. In the above circumstances, O.P. (DRT) No.2784 & W.P.(C) No.27774 of 2011 are disposed of with the following directions: The petitioner in W.P. (C) No.27774/2011 shall pay to the Bank interest at the rate of 12% on the 25% purchase price the purchaser had paid to the Bank from the date when he paid the amount to the bank till the date when the amount was O.P. (DRT) No.2784 & W.P.(C)No.27774 of 2011 -3- returned to him, along with Rs.1,00,000/- (Rupees One lakhs only) as compensation within three weeks. The same shall be paid by the bank to the purchaser within one week from the date when the borrower pays the above amounts to the bank. It would be open to the borrower to seek return of the security documents from the bank thereafter. If the borrower fails to comply with the above directions he will not be entitled to the benefits of this judgment and will also be liable for proceedings under the Contempt of Courts Act. In the event of non-compliance the borrower shall be liable to pay 12% further interest on the said amounts from today. Sd/- S. SIRI JAGAN JUDGE //True copy// P.A. TO JUDGE shg/