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2006 Supreme(SC) 938

H.K.SEMA, P.K.BALASUBRAMANYAN
State Bank Of India – Appellant
Versus
Ranjan Chemicals LTD. – Respondent


JUDGMENT

P.K. Balasubramanyan, J.—Leave granted.

2. This appeal is filed by the State Bank of India (hereinafter referred to as the ‘bank’) challenging the order of the High Court of Patna affirming an order of Subordinate Judge-I, Patna in Suit No. 168 of 2001 refusing to transfer the suit for being tried jointly with O.A. No. 18 of 2002 filed by the bank before the Debt Recovery Tribunal, Patna. The bank sought the transfer on the basis that the suit was in the nature of a counter claim to its claim and arose out of the same cause of action as the one put in suit by the bank before the Tribunal. The bank originally granted a term loan to M/s. Ranjan Chemicals Ltd. (hereinafter referred to as the ‘company’) of Rs. 30 lakhs. The bank further extended a cash credit facility to the company. The company failed to meet its obligations under the account. Thereupon the bank issued a notice calling upon the company to repay the amounts due under the loan transactions and to close its accounts. On receipt of that notice, the company filed a suit before the Court of Subordinate Judge-I, of Patna as Suit No. 168 of 2001 claiming that the bank had failed to fulfil its obligations while making a














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