JUDGMENT

B.N. KIRPAL, J.

(1) LEAVE granted. The transfer petitions are allowed.

(2) THE challenge to the constitutional va lidity of The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as the Act) on the ground that the Act is unreasonable and is violative of Article 14 of the Constitution, and that the same is beyond the legislative competence of the Parliament, arises for consideration in these cases.

(3) THE banks and financial institutions had been experiencing considerable difficulties in recovering loans and enforcement of securities charged with them. The procedure for recovery of debts due to the banks and financial institutions which was being followed had resulted in a significant portion of the funds being blocked. In order to get remedy of the locking up of huge funds, the Parliament enacted the said Act, which was preceded by an ordinance The Act, inter alia, provides the procedures for the establishment of tribunals and appellate tribunals. The tribunals have been given the jurisdiction, powers and authority to entertain and decide applications from the banks and financial in stitutions f