Writ Petition (Civil) No. 7709 of 2005. Case: Hoka Konyak Vs Union of India (UOI) and Ors.. Gawahati High Court

Case Number:Writ Petition (Civil) No. 7709 of 2005
Party Name:Hoka Konyak Vs Union of India (UOI) and Ors.
Counsel:For Appellant: D.K. Mishra, A. Dutta and K. Goswami, Advs. And For Respondents: H. Talukdar, L. Talikdar and G. Das, Advs.
Judges:Ranjan Gogoi and B.P. Katakey, JJ.
Issue:Financial Institutions Act, 1993 - Sections 19(7), 25(b) and 29; Negotiable Instruments Act, 1881 - Section 118; Civil Procedure Code (CPC) - Order 8, Rule 5 - Order 10, Rule 1 - Order 12, Rules 2 and 6 - Order 15, Rules 1, 2 and 5
Citation:IV (2010) BC 399
Judgement Date:December 10, 2009
Court:Gawahati High Court
 
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Judgment:

B.P. Katakey, J.

  1. The Petitioner, who was the Defendant No. 2 in Money Suit No. 2 of 1990 filed in the Court of the learned Additional Deputy Commissioner (Judicial), Mon, Nagaland by the State Bank of India, Naginimora Branch, the Respondent No. 3 herein has by the present petition challenged the proceeding pending before the learned Debts Recovery Tribunal, Guwahati, initiated against him amongst other Defendants in the suit for realization of an amount of Rs. 15,76,768.01 in terms of the judgment and decree dated 25th May, 1994 passed by the Additional Deputy Commissioner (Judicial).

  2. The facts relevant for the purpose of the present writ petition may be noticed as under:

    The State Bank of India-Respondent No. 3 filed Money Suit No. 2 of 1990 against the present Petitioner and three others (who are Respondent Nos. 4, 5 and 6 in the present writ petition) for realization of a sum of Rs. 15,76,768.01 together with interest contending, inter alia, that the present Respondent Nos. 4, 5 and 6, who were the principal debtors had failed to repay the loan amount. It has further been contended in the plaint that the present Petitioner was the guarantor in respect of the said loan and agreeing to pay the Bank the loan amount in the event the principal debtors are unable to pay the loan amount. In the said suit though the Petitioner entered appearance on 6.9.1991 and filed an application on 11.9.1991 praying for time to file written statement, however, did not appear before the Court thereafter. The principal debtors (Respondent Nos. 4, 5 and 6), however, filed the written statement admitting the claim of the Plaintiff Bank and prayed for allowing them to repay the loan on instalment and with simple interest. The prayer of the said Defendants for simple interest, however, was contested by the Bank stating that the interest to be awarded in terms of the contractual rate of interest. On the basis of such admission in the written statement filed by the Defendant Nos. 1, 3 and 4 (Respondent Nos. 4, 5 and 6 in the writ petition) the learned trial Court by judgment dated 25.5.1994 decreed the suit of the Plaintiff for an amount of Rs. 15,76,768.01 with interest at the rate of 121/2% with quarterly rest with effect from 21.3.1990.

  3. The Plaintiff Bank, thereafter, filed an application before the Recovery Officer-Debts Recovery Tribunal, for issuance of a certificate under Section 19(7) of the Recovery of Debts Due to Bank and Financial...

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