Canara Bank vs Leatheroid Plastics Pvt. Ltd. And Ors.

Ranjit Singh, J

The Tribunal below had earlier held the appellant Bank entitled to charge interest @ 11% p.a. simple from the date of NPA on reducing balance till the date of actual realization. This order was passed in O.A. No. 90/2003. The Bank had appealed against this part of the order by filing appeal No. 246/2014. While disposing of this appeal, this Tribunal had observed as under:

"In my opinion this order can be read to mean that interest has been allowed on NPA amount. What can be made out from the order is that the Bank is entitled to charge interest from the NPA date i.e. 31st December, 2001 and not that the interest is allowed on NPA amount. Even then, the appellant would be at liberty to seek clarification in this regard in case there is any doubt."'

The Counsel appearing for the appellant thereafter had sought permission not to press the said appeal with liberty to approach the Tribunal below to seek clarification of the order, if so advised.

The Bank thereafter filed M.A. No. 72/2014 seeking clarification of this part of the order whereby the Bank was held entitled to interest from the date of NPA on reducing balance basis. The Tribunal below has now considered the prayer of the Bank in seeking clarification of this order and has held that there is no ambiguity in the order which is crystal clear.

The Tribunal has also observed that in the order deciding O.A. the interest @ 11 % was allowed apparently on the undisputed NPA amount of Rs. 44,76,219 as on 31.12.2001. Aggrieved against this order passed by the Tribunal below, the appellant Bank has now not only filed an appeal against order passed clarifying the order, but has also challenged the order dated 15.5.2014 passed in the O.A.

The appeal against the main order dated 15.5.2014 deciding the O.A. is barred by 281 days, which is explained in the manner that the appellant has resorted to legal remedies to seek clarification of the order as regard this order passed in appeal.

Once the appellant had got the appeal against the final order in the O.A. dismissed as not pressed, they cannot now be heard to complain against the same final order. No action is taken even to seek review of the order whereby earlier appeal filed by the Bank against the order dated 15.5.2014 was got dismissed as not pressed. No case for either condoning the delay or for hearing this appeal against the order dated 15.5.2014 therefore is made out.

The Tribunal now has clarified that part of the order about which the Bank had some doubts. In the grounds of appeal, plea primarily is that the Tribunal below could not have allowed reduced rate of interest ignoring the contractual rate of interest. The challenge on merit cannot be entertained and the confusion, if any, in the order is only in the mind of the Bank, which has now been clarified that the interest chargeable is on the NPA amount of Rs. 44,76,219/-. The amount claimed in the O.A. may be any, but the Tribunal has allowed interest on NPA amount from the date of NPA as is now clarified. The only submission made against this part of the order is that the interest ought to have been allowed on the amount claimed in the O.A.

The interest has been allowed w.e.f. 31.12.2001 whereas the O.A. was filed on 29.12.2003. It is also noticed that the respondents had made some payments in-between. The Counsel could not otherwise show any error in the view formed by the Tribunal in this regard. Once the Bank got the appeal dismissed as withdrawn, it can be heard to challenge the interest as allowed by the Tribunal as the Bank had given up this challenge. The appeal against the order dated 16.2.2015 is dismissed in limine.