MANAGER SYNDICATE BANK vs D. KRISHNA BHAT

THESE appeals are directed against the order passed by the District Forum, Kasaragod, in opposite party Nos. 157/96 and 158/96.

IN both these appeals the question raised is whether it would be open to the Bank, which advanced loan to recover 5% commission deducted by the Revenue Recovery Authorities by taking a fresh recovery proceedings. It is not disputed that in both these cases the Revenue Authorities have deducted 5% from the amount recovered towards 5% commission. The complainant has no case that in the revenue recovery proceedings initially 5% commission was also added and therefore opposite party cannot take action to recover the said amount. Learned Counsel relied on the decision of the Kerala High Court in 1990 K.L.T. 120. It was held that as the cost of recovery forms part of the amount due to creditor there is no bar in recovering the amount from the debtor. IN the circumstances it would be difficult to sustain the order passed by the District Forum holding the action of the opposite party in recovering this amount is a deficiency in service and awarding compensation. We issued notice to the respondents/ complainants and pursuant to this they have filed a version in which it is admitted, that the ruling referred to above has upheld the validity of recovery proceedings for recovery of commission by resorting to revenue recovery proceedings. However, it was contended that appellant did not choose to add that amount alongwith other amounts at the first instance and that therefore the appellant is not entitled to take any further proceedings. We do not find any legal bar in recovering the amount, if the amount representing commission has not already been recovered at the first instance from the appellant. In the circumstances we allow the appeals, set aside the order of the District Forum and dismiss the complaints. Appeals allowed.