1999 Supreme(SC) 635

1999(5) Supreme 361
Supreme Court of India
(From Allahabad High Court)
B.N. Kirpal & S. Rajendra Babu, JJ.
Sita Ram Singhania -Petitioner
versus
Bank of Tokyo-Mitsubishi Ltd. & Ors. -Respondents
Special Leave Appeal (Civil) No. 6759 of 1999
Decided on 11-5-1999
Counsel for the Parties :
For the Petitioner : Mr. Ravinder Sethi, Sr. Advocate, Mr. Sanjay Gupta and Mr. Rajeev Sharma, Advocates.

Headnote:Special Leave Petition-Grant of stay by High Court more or less as matter of course in matters filed by defendants in suits instituted by Banks before Debt Recovery Tribunal-Purpose of setting up Tribunals be lost by granting such stay merely because notification constituting Tribunal under challenge-High Court in present case right in coming to conclusion that as proceedings initiated in State of M.P.-Allaha­bad High Court has no jurisdiction.

       Held : We see no reason why the High Courts in such matters filed by the defendants in suits instituted by the banks before the Debt Recovery Tribunal should more or less as a matter of course grant stay of proceedings before the Tribunals. The very purpose of setting up the Tibunals will be lost by granting stay merely because there is chal­lenge to the notification constituting the Tribunal. In the present case, the High Court has rightly come to the conclusion that as the proceedings were initiated in the State of Madhya Pradesh, the Allaha­bad High Court had no jurisdiction. (Para 1)