The Supreme Court last month dismissed an appeal by a businessman, Penjore, claiming compensation and sought redressal to an alleged error in enforcement of judgment by the Bumthang court in 2016.
The apex court ruled that the loan default case, which had reached the Supreme Court through appeals by the Paro-based businessman had been decided and judgments upheld.
“The property has been seized as per the judgment of the court and your claims of compensation for the two years that it remained seized are not legit,” the order from Chief Justice Tshering Wangchuk stated.
The three star hotel in Bumthang was seized for the past two years as the man and the bank fought the case in the courts.
The main contention of the businessman had been that the Bumthang court had not followed the order from the High Court, which asked him to pay the overdue installments and update the loan. He claimed that instead the dzongkhag court asked him to pay the entire loan.
He appealed and even filed a Constitutional case at the High Court, which was also dismissed. The High Court Chief Justice called it was ‘res judicata’ and stated that the Constitutional case was already decided and could not be reopened.
The Supreme Court earlier passed two judgments on the case in favour of the bank.
Bumthang dzongkhag court passed a judgment in April 2016 after the bank lodged a loan default case against Penjore. The court ordered the bank to take over the property mortgaged with the bank if Penjore failed to pay the entire principal amount with interest to the bank. Subsequently, the property, a three-star hotel, was advertised for public auction.
The businessman sought the High Court to look at legal issues with the bank related to the loan he availed from it and compensate him for the losses he suffered in the process.