Authority: Supreme Court of India
Order Date: 27-07-2026
Case Overview
- Petition: G. Rathinavelu (Petitioner) vs Indian Overseas Bank & Others (Respondents).
- Origin: Petition arises from impugned final judgment and order dated 03-04-2025 in WP Nos. 33396/2019, 33398/2019, 33399/2019, 3412/2020, 3419/2020, 3427/2020 passed by the Madras High Court.
- Background: A Coordinate Bench on 10-11-2025 appointed a Chartered Accountant to determine the amount payable by the petitioner‑borrower to the bank as per the Debts Recovery Appellate Tribunal (DRAT) order dated 14-11-2019. The Debts Recovery Tribunal (DRT) had rejected a counter‑claim of Rs 30 crore (Rs 30,00,00,000) put forward as damages and reduced the interest payable to 6% per annum simple interest. On appeal, DRAT increased the interest rate to 9% per annum simple interest while upholding the rejection of the counter‑claim.
- Subsequent Computation: The Chartered Accountant filed a statement of account indicating an excess payment by the borrower to the bank. Respondent‑Bank’s senior counsel, Sri N. Venkataraman, contested this computation, asserting that payments were credited to principal, not interest, contrary to legal principles.
Final Outcome
1. The Court condoned the delay in filing/curing defects in the petition.
2. The Court held that the Bank must prepare a comprehensive statement of accounts showing loan disbursements, repayments, and compute simple interest at 9% per annum on yearly rests.
3. This statement must be produced on affidavit by the Branch Manager within two weeks from the date of the order.
4. The matter is listed for further hearing on 13-08-2026.
Topics: Debt Recovery, Banking Litigation