Important Point
The Debt Recovery Tribunal can exercise powers contained in the Code of Civil Procedure and can even go beyond the Code as long as it passes orders in conformity with principles of natural justice. Section 19(6) does not in any manner limit the generality of the powers of the Tribunal u/s 22(1) of the Debts Due to Banks and Financial Institutions Act.

Headnote:Recovery of Debts Due to Banks and Financial Institutions Act, 1993 -Sections 19(6) and 22-Debt Recovery Tribunal (Procedure) Rules, 1993-Rule 18-Power to pass interim orders-Scope and ambit of-Tribunal can exercise powers contained in Code of Civil Procedure and even go beyond the Code as long as it passes orders in conformity with principles of natural justice-Section 19(6) does not limit generality of powers u/s 22(1)-Bank sought for injunction restraining defendant from recovery of certain amount one ‘B’-Service of advance copy of I.A. refused by counsel for defendant-Tribunal passed interim restraint order pending disposal of interim matter -Order not violative of principles of natural justice.
       Held : The scope and the extent of the powers of the Tribunal are mainly referred to in Sub-clause (1) of Section 22 of the Act which says that the Tribunal shall not be bound by the procedure laid down by the Code of Civil Procedure but shall be guided by principles of natural justice. The Tribunal can exercise powers contained in the Code of Civil Procedure and can even go beyond the Code as long as it passes orders in conformity with principles of natural justice. Section 19(6) does not in any manner limit the generality of the powers of the Tribunal under Section 22(1). It merely states that certain types of injunction or stay orders may be passed by the Tribunal. It is to be noticed that Sub-clause (6) of Section 19 starts with the words-“The Tribunal may make an interim order....” The provision is an enabling provision and merely states that certain types of injunction or stay orders mentioned therein can be passed by the Tribunal but such an enumeration cannot, in our opinion, be deemed to be exhaustive nor restricting the Tribunal’s powers only to those types of injunction or stay orders. The width and amplitude of the powers are to be gathered from Section 22(1). In addition, Rule 18 enables the Tribunal to pass orders to secure the ends of justice. (Para 8)
       The Tribunal certainly has powers to pass other types of injunction orders or stay orders apart from what is stated in Section 19(6). It may issue notice and after hearing the opposite side, pass orders. Or, it may ad interim, orders without hearing the opposite side and then give a subsequent hearing to the opposite party and pass final orders. Section 22(2) too does not limit the general powers referred to in Section 22(1). All that Section 22(2) states is that in respect of the type of applications falling under (a) to (h), the Tribunal has only powers as are vested in a Civil Court. (Para 9)
       The counsel for the respondents refused to accept notice and that therefore the Tribunal proceeded to pass the impugned order. Thus, the Tribunal had conformed to principles of natural justice. The Tribunal was, therefore, very much within its powers in passing the order in question. The High Court, therefore, erred in holding that the Tribunal had exceeded its jurisdiction and its order is, therefore, liable to be set aside. (Para 10)

Judgment

M. Jagannadha Rao, J.-Leave granted.

2. The Allahabad Bank, Calcutta has filed this appeal against the order of the Calcutta High Court dated 19.6.98 in C.O. 1238/98. By that order passed under Article 227 of the Constitution of India, the High Court set aside the order dated 30.4.98 passed by the Presiding Officer, Debts Recovery Tribunal, Calcutta (under the Recovery of Debts due to Banks and Financial Institutions Act, (Act No. 51 of 1993) (hereinafter called the ‘Act’).

3. The facts of the case are that the Bank filed a suit under Section 19(1) of the Act before the Tribunal on 27.3.97 for recovery of monies in a sum of Rs. 46.54 lakhs and odd from respondents 1 to 3 and for other reliefs. Pending the case, the Bank applied on 29.3.97 seeking temporary injunction restraining the respondents from taking any monies or sums from M/s. Braitewaite and Co. When the advance copy of the I.A. was sought to be served on the learned counsel for respondents, the same was refused. The Tribunal then passed an interim order of injunction on 30.4.98 as follows :

“In the meantime, the respondents 1, 2 and 3 are restrained from recovering any money from M/s. Braitewaite and Co. Ltd., till disposal of the interim matter”.

4. The respondents moved the High Court, in an application under Article 227 of the Constitution of India. The High Court in its order dated 19.6.98 held that under Section 19(6) the Tribunal had only limited powers to pass interim orders of certain types but that the injunction granted was not of the type enumerated in Section 19(6). The High Court, therefore, set aside the Tribunal’s order. The Bank has filed this appeal.

5. We have heard learned counsel on both sides. We shall first refer to the relevant statutory provisions.

The provisions of Sub-clause (6) of Section 19 of the Act read as follows :

“Section 19(6) : The Tribunal may make an interim order (whether by way of injunction or stay) against the defendant to debar him from transferring, alienating or otherwise dealing with, or disposing of, any property and assets belonging to him without any prior permission of the Tribunal”.

It will be noticed that the above provision in Section 19(6) refers to certain types of injunction or stay orders and the injunction order passed in this case is no doubt not one of the types mentioned in Section 19(6). It is next necessary to refer to the important provisions in Sub-clause (1) and (2) of Section 22 of the Act and Rule 18 of the Debt Recovery Tribunal (Procedure) Rules, 1993. Section 22 reads as follows :

“Section 22: Procedure and Powers of the Tribunal and the Appellate Tribunal-

(1) The Tribunal and the Appellate Tribunal shall not be bound by the procedure laid down by the Code of Civil Procedure, 1908 ( 5 of 1908), but shall be guided by the principles of natural justice and, subject to the other provisions of this Act and of any rules, the Tribunal and the Appellate Tribunal shall have powers to regulate their own procedure including the places at which they shall have their sittings;

(2) The Tribunal and the Appellate Tribunal shall have, for the purposes of discharging their functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 ( 5 of 1908), while trying a suit, in respect of the following matters, namely :-

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) requiring the discovery and production of documents;

(d) issuing commissions for the examination of witnesses or documents;

(e) reviewing its decisions;

(f) dismissing an application for default or deciding it ex parte;

(g) setting aside any order of dismissal of any application for default or any order passed by it ex parte;

(h) any other matter which may be prescribed.

Rule 18 of the Rules sta

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1999 Supreme(SC) 1002

Cases Referred (1)