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Karnataka High Court

Mrs B S Gowramma vs M/S Fina Group on 28 March, 2019

Bench: Ravi Malimath, S G Pandit

                          1



     IN THE HIGH COURT OF KARNATAKA AT BENGALURU

            ON THE 28TH DAY OF MARCH, 2019

                       BEFORE

        THE HON'BLE MR. JUSTICE RAVI MALIMATH

                         AND

         THE HON'BLE MR. JUSTICE S. G. PANDIT

       WRIT PETITION NO.57902 OF 2015 (GM-DRT)

BETWEEN:

MRS. B S GOWRAMMA
WIFE OF MALLIKARJUNARADHYA
AGED ABOUT 50 YEARS
BANAVADI VILLAGAE
SOLUR HOBLI, MAGADI TALUK
BENGALURU RURAL DISTRICT.
                                       ... PETITIONER

(BY SRI. NAGARAJ DAMODAR, ADVOCATE)


AND:

1.    M/S. FINA GROUP
      REPRESENTED BY ITS PROPRIETOR
      SRI.B.P.SRINIVAS
      AGE:MAJOR
      NO.88, 11TH MAIN, 6TH SECTOR
      HSR LAYOUT
      BENGALURU -560034.
                           2



2.   B.P.SRINIVAAS
     SON OF B.G.PUTTASWAMY GOWDA
     AGE:MAJOR
     PROPRIETOR, M/S. FINA GROUP
     NO.300, 3RD MAIN ROAD, 2ND CROSS
     A BLOCK, RHCS LAYOUT
     ANNAPOORNESHWARI NAGAR
     BENGALURU-560091.

3.   THE CENTRAL BANK OF INDIA
     REPRESENTED BY ITS BRANCH MANAGER
     NO.78, J.C.ROAD
     BENGALURU -560002.

4.   THE REGISTRAR
     DEBT RECOVERY APPELLATE TRIBUNAAL
     4TH FLOOR, INDIAN BANK CIRCLE OFFICE
     55, ETHIRAJ SALAI
     CHENNAI-600008.
                                     ... RESPONDENTS

(BY SRI.EASHWAR PRASAD B, ADVOCATE FOR
 RESPONDENT No.3
 VIDE ORDER DATED 28.03.2019 NOTICE TO
 RESPONDENT Nos.1 AND 2 IS HELD SUFFICIENT
 VIDE ORDER DATED 06.09.2016 NOTICE SERVED TO
 RESPONDENT No.4 IS HELD SUFFICIENT)


     THIS WRIT PETITION IS FILED UNDER ARTICLES
226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING
TO QUASH THE IMPUGNED ORDER DATED 18.09.2015
PASSED AT ANNEX-A AND CONSEQUENTLY SET ASIDE
THE IMPUGNED ORDER DATED 02.11.2015, ANN-B
REJECTING THE APPEAL (IN O.A.596/2009 ON THE FILE
OF DRT, BENGALURU) BY THE DEBTS RECOVERY
APPELLATE TRIBUNAL - AT CHENNAI (R-4) AND THERE BY
ALLOW THE I.A.862/2014 IN AIR 127/2014 ON THE FILE
                              3



OF THE DEBT RECOVERY APPELLATE TRIBUNAL - CHENNAI
(R-4) BY ORDERING TO RESTORE THE APPEAL TO THE
ORIGINAL FILE.

     THIS PETITION COMING ON FOR ORDERS THIS DAY,
RAVI MALIMATH J., PASSED THE FOLLOWING:

                          ORDER

This petition is filed being aggrieved by the order dated 02.11.2015 passed by the Debt Recovery Appellate Tribunal, Chennai in AIR 127 of 2014. In terms of the said order, the appellant/writ petitioner was directed to deposit 25% of the Principal amount of Rs.27,48,098.46p as a condition precedent for numbering of the Appeal.

2. Learned counsel for the petitioner submits that the petitioner is neither a borrower nor a guarantor and her property has been wrongly mortgaged. Further more, the provision of law as on the date the order was passed entail waiver of the pre-deposit. The impugned order was passed on 18.09.2015.

4

3. The proviso to Section 21 was amended with effect from 01.09.2016. Prior to the amendment, the proviso included that the Appellate Tribunal may, for the reasons to be recorded in writing, waive or reduce the amount to be deposited under this section. Therefore, this unamended provision of law that would stand applicable to the writ petitioner herein.

4. In view of the reasons assigned by the writ petitioner that the petitioner is neither a borrower nor a guarantor, we find it just and expedient that the pre-deposit amount be waived since law as it stood on that day entailed waiver or reduction of the amount of pre-deposit.

5. For the aforesaid reasons, the petition is allowed. The order dated 18.09.2015 in AIR 127/2014 passed by the Debt Recovery Appellate Tribunal, Chennai is set aside. 5

Payment of pre-deposit by the petitioner is waived. The appeal shall stand restored to file.

The Appellate Tribunal shall consider the appeal on merits in accordance with law.

    Sd/-                                    Sd/-
   JUDGE                                   JUDGE




mpk/-*
ct:bms