IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Ravi Nath Tilhari, Duppala Venkata Ramana, JJ.
Chaparala Rajasekhar - Appellant
Versus
Icici Bank Limited - Respondent
Civil Revision Petition No. 2320 of 2023
Decided On : 26-09-2023
Limitation Act - Recovery of Debts and Bankruptcy Act - Sec. 24, Sec. 22(2)(g), Sec. 19 - The court discussed the applicability of the Limitation Act to an application made to a Tribunal under Sec. 19 of the Recovery of Debts and Bankruptcy Act. The judgment of the Madras High Court and the Supreme Court's decision in International Asset Reconstruction Company of India Limited Vs. Official Liquidator were referenced to establish that the provisions of the Limitation Act do not apply to applications under Sec. 22(2)(g) of the RDB Act. The court held that the period of limitation for filing an application to set aside an ex-parte order before the Tribunal shall be 30 days, and there would be no power with the Tribunal to entertain such an application beyond the 30-day period from the start of the limitation period.
Fact of the Case:
The respondent ICICI Bank Ltd. filed O.A.No.157 of 2009 before the Debts Recovery Tribunal Visakhapatnam, which was allowed against the defendants for realization of the amount claimed, fixing liability of the defendants jointly, severally and personally. The petitioner filed a petition to set aside the ex-parte order on the ground that it was an ex-parte order.
Finding of the Court:
The court found that the application to set aside the ex-parte order was maintainable under Sec. 22(2)(g) of the Recovery of Debts and Bankruptcy Act, and the period of limitation for filing such an application was 30 days. The court also found that the petitioner was afforded the opportunity of hearing on the merits of the application.
Issues: The issues were whether there is any period of limitation to file an application to set aside the ex-parte award of the Tribunal, and whether the petitioner's application had been dismissed on merits without affording an opportunity of hearing.
Ratio Decidendi: The court held that the period of limitation for filing an application to set aside an ex-parte order before the Tribunal shall be 30 days, and there would be no power with the Tribunal to entertain such an application beyond the 30-day period from the start of the limitation period. The court also held that the impugned order had been passed with due opportunity of hearing to the petitioner.
Final Decision: The Civil Revision Petition was dismissed, and the petitioner was advised to choose the appropriate remedy, subject to the provisions of the RBD Act and the Law of Limitation.
JUDGMENT
RAVI NATH TILHARI, J. - Heard Sri P.Raja Sekhar, learned counsel for the petitioner.
2. This civil revision petition under Article 227 of the Constitution of India has been filed for the following relief:-
"...pleased to set aside the order dtd. 1/8/2023 passed in Diary No 1301 of 2023 (unnumbered MA) in O.A.No.157 of 2009 on me file of Debts Recovery Tribunal, Visaknapatnam and allow the Civil Revision Petition in the interest of justice and pass..."
3. Briefly stated the facts of the case are that, the respondent ICICI Bank Ltd., Visakhapatnam, filed O.A.No.157 of 2009, before the Debts Recovery Tribunal Visakhapatnam (in short the Tribunal) which was allowed against the defendants therein (the present petitioner was defendant No.4) for realization of the amount claimed in O.A., fixing liability of the defendants jointly, severally and personally, and the recovery certificate was issued vide Order of the Tribunal dtd. 22/3/2018.
4. The petitioner herein, filed Petition Diary No.1301/2023/ unnumbered M.A. in the said O.A. to set aside the Order dated, 22/3/2018 on the ground that it was an ex-parte order.
5. The Registry of the Tribunal raised objections to the petition IR (MA) 101 of 2023 that "(1) condone delay petition not filed. (2) This petition is non maintainable without delay petition".
6. The petitioner represented the same with an endorsement which reads as follows:
"It is submitted that this petition is filed under Sec.22(2)(g) of Recovery of Debts and Bankruptcy Act for which no period of limitation is prescribed. Further, provisions of Limitation Act, do not apply to this petition as held by the Madras High Court in the Judgment reported in 2008(2) Law Weekly (Page 103). The Hon'ble Supreme Court held that the provisions of Limitation Act will apply only to Application filed under Sec. 19 of the Act to Review Petitions filed under Sec.22(2)(e) of the Act read with Rule 5.A of Debts Recovery (Procedure) Rules, 1993. Hence, this petition is maintainable without a separate petition for condonation of delay. In such cases, the only aspect to be considered is, whether reasonable grounds are set out in the petition to set aside ex-parte order".
7. The petitioner's endorsement was that the application was filed under Sec. 22(2)(g) of the Recovery of Debts and Bankruptcy Act (for short "the RDB Act") for which no period of limitation is prescribed. The Limitation Act also did not apply in view of the judgments as mentioned in the endorsement (supra). It was submitted that the petition was maintainable without a separate petition for condonation of delay.
8. The matter was placed before the Tribunal which by Order dtd. 1/8/2023 dismissed the Petition Diary No.1301 of 2023/unnumbered M.A., finding no merit.
9. Learned counsel for the petitioner while challenging the Order dtd. 1/8/2023 submits that the application to set aside the ex-parte order is maintainable under Sec. 22(2)(g) of the Act. For filing the said application there is no period of limitation prescribed under the Act. The Limitation Act is also not applicable. Consequently there is no requirement to file any application under Sec. 5 of the Limitation Act or any application under the RDB Act to condone the delay. He has referred to the provisions of Ss. 2, 19, 22(2)(g), and 24 of RDB Act and placed reliance in the Judgment of the Madras High Court in M/s.Tamil Nadu Merchantile Bank Limited represented by its Manager, TTK Road Branch Vs M/s G.Vijaya Lakshmi, 2008-2-L.W.1103. and the Judgment of the Hon'ble Supreme Court in International Asset Reconstruction Company of India Limited Vs. Official Liquidator, (2017) 16 SCC 137.
10. He further submits that the Tribunal ought to have first decided the objection with respect to the limitation and the necessity of the application for condonation of delay. It was only thereafter it should have proceeded to decide the application on merits. He submits that the opportunity to argue the matter on the merits of the
International Asset Reconstruction Company of India Limited Vs. Official Liquidator
Sunil Poddar & Others Vs.Union Bank of India (2008) 2 SCC 326
The main legal point established in the judgment is that the period of limitation for filing an application to set aside an ex-parte order before the Tribunal shall be 30 days, and there would be no ....
The applicability of Article 136 of the Limitation Act supersedes Article 137 for final decree applications, allowing exclusion of prior litigation periods in calculating limitation.
Orders made by Debts Recovery Tribunal are appealable under Section 20 of the Recovery of Debts and Bankruptcy Act, prohibiting judicial intervention absent exhaustion of statutory remedies.
Actual service of summons by registered post acknowledgment due is valid, even if defendants reside outside jurisdiction, and non-compliance with procedural rules does not equate to no service.
Judicial proceedings must ensure that all relevant applications are addressed before execution to uphold the principles of justice and fair trial.
The limitation period for setting aside an arbitral award starts from the disposal of a request under Section 33, excluding the time taken for communication of that decision.
Point of law: Once court accepts explanation as sufficient it is the result of positive exercise of discretion and normally the superior court should not disturb such finding, much less in revisiiona....
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