Defaulter Directed To Pay Outstanding Dues In Monthly Installments

D. NAGESWAR RAO (THE APPELLANT) COMMITTED DEFAULT in repaying the loan availed by him from State Bank of India (respondent no. 1). Consequently, the Bank initiated steps under The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 to recover the loan amount and obtained a decree for an amount of Rs. 92,94,183/-.

Since the appellant could not satisfy the decretal amount, the Bank proceeded further and put the property to auction. Respondent No. 3 is the auction purchaser. The property was auctioned for an amount of Rs. 48,80,000/-. The Respondent No. 3 had deposited the entire amount of Rs. 48,80,000/- before the Debt Recovery Tribunal, though belatedly, and the same is kept in an interest bearing account.

When the matter came up on an occasion appeal before the Supreme Court, direction was given to the counsel for the Bank to take instruction as to what was the amount outstanding up to date. On written instruction it was informed that after adjusting the amount of Rs. 60,00,000/-. The outstanding dues were Rs. 1,02,06,815/-. The appellant took the stand that he may be permitted to pay the said amount in installments. The Supreme Court disposed of the appeal by directing to pay in installments.

The operative part of the judgement read as under :

Though, the request is seriously opposed by the learned counsel for the Bank, having regard to the past conduct of the appellant, in the interest of justice, we propose to give one more opportunity to the appellant. After all, the bank need only get its money, even if the auction is confirmed in favour of the respondent auction purchaser, it will not meet even 1/3 of the dues. The appellant undertakes that the amount can be paid in monthly installment of Rs. 15,00,000/-.