IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF DECEMBER 2017 PRESENT THE HON’BLE MR. H.G.RAMESH ACTING CHIEF JUSTICE AND THE HON’BLE MR. JUSTICE P.S.DINESH KUMAR WRIT PETITION NO.38284/2017 & WRIT PETITION NOS.54238-54239/2017 (GM-DRT) BETWEEN:
1. M/S KAROL LUBRICANTS INDIA LTD. A COMPANY REGISTERED UNDER THE COMPANIES ACT HAVING ITS OFFICE AT NO.111 SHAMPUR ROAD, K.G.HALLI NEAR DR. AMBEDKAR MEDICAL COLLEGE BANGALORE – 560 045 REPRESENTED BY ITS DIRECTOR MR. ANWAR SHARIEFF 2. MR. ANWAR SHARIEFF S/O LATE JAMALUDDIN AGED ABOUT 57 YEARS R/AT NO.154, 6TH CROSS PILLANNA GARDEN, BANGALORE – 560 084 3. MR. FIAZ SHARIEFF S/O SRI JAMALUDDIN AGED ABOUT 54 YEARS R/AT NO.154, 6TH CROSS PILLANNA GARDEN, BANGALORE- 560 084 ...PETITIONERS (BY SRI A.MADHUSUDHANA RAO, ADVOCATE) AND:
1. M/S.KOTAK MAHINDRA BANK LTD.
1ST FLOOR, CEEBROS CENTRE NO.39, MONTIETH ROAD EGMORE, CHENNAI- 600 008 REPRESENTED BY ITS MANAGER 2. M/S.UNION BANK OF INDIA HAINS ROAD BRANCH BANGALORE- 560 002 REPRESENTED BY ITS MANAGER 3. MR.MUNIR SHARIEFF S/O. SRI JAMALUDDIN AGED ABOUT 55 YEARS R/AT NO.154, 6TH CROSS PILLANNA GARDEN BANGALORE-560 084 …RESPONDENTS THESE WRIT PETITIONS ARE FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 11.07.2017 PASSED BY THE DEBT RECOVERY APPELLATE TRIBUNAL, CHENNAI IN I.A.NO.41/2017 IN AIR NO.305/2005 AT ANNEXURE-L AND ALLOW THESE WRIT PETITIONS.
THESE WRIT PETITIONS COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE ACTING CHIEF JUSTICE MADE THE FOLLOWING:
O R D E R Ag.CJ (Oral):
1. Heard. These writ petitions are directed against the order dated 11.07.2017 (Annexure-L) passed by the Debt Recovery Appellate Tribunal, Chennai. This order is passed by the Tribunal in exercise of the power under the proviso to Section 21 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993.
2. The impugned order reads as follows:
“…………………………………………………………………………………………. Heard on IA-43/2017 application for waiver.
Appellants have challenged the order dated 17.7.2014 of DRT, Bangalore, by which O.A.No.224/2002 of R1 Bank for recovery of Rs.3.71 Crores was allowed.
Ld.Counsel for the Appellants submits that during pendency of the case, he paid an amount of Rs.2.15 Crores in the Bank and waiver may be presumed to have been complied.
Per contra, Ld.Counsel for R1 Bank submits that now the debt amount has increased to the tune of Rs.16.5 Crores and prayed for directing the Appellants to make a pre- deposit of Rs.8 Crores.
Ld.Counsel for R2 Bank submits that borrowing of two Banks have been defaulted by the Appellants and they created a confusion regarding deposits as to which account they wanted to make the deposits.
Considering the fact that after passing of the impugned order, no amount has been tendered whatsoever, but for the purpose of this Appeal, I consider the debt amount to be Rs.3.71 Crores and in view of the fact that DRAT cannot entertain any Appeal without ensuring the pre-deposit of 50% of the debt amount, which cannot be reduced to less than 25% in any case, without expressing any opinion on merits of the case, which will appreciated and tested at the time of final hearing of the case, I hereby direct the Appellants to make a pre- deposit of Rs.1.50 Crores. Out of this amount, the first instalment of Rs.75 lakhs shall be deposited with the Registrar of this Tribunal within four weeks from today and the remaining instalment of Rs.75 lakhs shall be deposited in next four weeks thereof. It is made clear that in case of default to deposit the first instalment as stipulated above, the Appeal shall stand dismissed automatically without reference to this Court.
IA-43/2017 is disposed of accordingly.
List for confirmation of pre-deposit of first instalment of Rs.75 lakhs on 8.8.2017.”
3. The discretion exercised by the Appellate Tribunal in granting the waiver can’t be said to be arbitrary or perverse on the facts of the case. We find no ground warranting interference under the extraordinary jurisdiction of this Court under Articles 226 and 227 of the Constitution of India. The writ petitions are accordingly dismissed.
Petitions dismissed.
Sd/-
ACTING CHIEF JUSTICE Sd/- JUDGE KSR