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2000 Supreme(Cal) 512

High Court Of Calcutta
TARUN CHATTERJEE
VIJAYA BANK - Appellant
Versus
SMT.SULOCHANA DEVI JALAN - Respondent
A. P. O. T. No. 768 of 1999, G. A. No. 3592 of 2000 & C. O. S. No. 572 of 1991
Decided On : 09/28/2000

The jurisdiction of the DRT to entertain any dispute regarding recovery of debts by the Bank is exclusive, and no Court shall entertain such claim of the Bank.

Headnote:

RECOVERY OF DEBTS DUE TO BANKS AND FINANCIAL INSTITUTIONS ACT, 1993 - SECTION 17, 18, 19, 31 - JURISDICTION OF DEBT RECOVERY TRIBUNAL - EXCLUSIVE JURISDICTION - STAY OF PROCEEDINGS - COURT'S INHERENT POWER - ISSUES NOT IDENTICAL - CROSS OBJECTION - SALE OF MACHINES - RECEIVER'S REPORT - BONA FIDE OF RESPONDENT - INTERIM ORDER BY TRIBUNAL.

Fact of the Case:

A suit was filed in the Calcutta High Court by the respondent against the appellant bank for a decree of Rs. 80,85,000/- and other incidental reliefs. The appellant bank filed a suit against the respondent for a decree of Rs. 57,18,64.84 and other reliefs. During the pendency of the suit, the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (the Act) was enacted, and the suit was transferred to the Debt Recovery Tribunal (DRT). The respondent filed an application in the High Court to stay the proceedings before the DRT until the disposal of the suit. The High Court allowed the application and stayed the proceedings before the DRT.

Finding of the Court:

The High Court held that it had no jurisdiction to stay the proceedings before the DRT. The jurisdiction to entertain any dispute regarding recovery of debts by the Bank is exclusively conferred on the DRT, and no Court shall entertain such claim of the Bank. The High Court also held that the issues involved in the suit and the proceedings before the DRT were not identical.

Issues: 1. Whether the High Court has jurisdiction to stay the proceedings pending before the DRT till a decision is made in the suit pending before the High Court. 2. Whether the issues involved in the suit and the proceedings before the DRT were identical.

Ratio Decidendi: 1. The jurisdiction of the DRT to entertain any dispute regarding recovery of debts by the Bank is exclusive, and no Court shall entertain such claim of the Bank. 2. The issues involved in the suit and the proceedings before the DRT were not identical.

Final Decision: The High Court allowed the appeal and set aside the order of the trial court staying the proceedings before the DRT. The High Court also dismissed the cross-objection filed by the respondent.

S. K. MOOKHERJEE,J.

( 1 ) -THE main question that was raised by the learned counsel for the parties in this appeal was whether an application pending before the Debt Recovery Tribunal under the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as "the Act") would be directed to be stayed either under the provisions of section 10 of the Code of Civil Procedure or under the inherent power of the Court under section 151 of the Code of Civil Procedure, in view of a suit pending in this Court which was filed prior to the institution of the Application under the Act. The main question that was raised by the learned counsel for the parties in this appeal was whether an application pending before the Debt Recovery Tribunal under the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as "the Act") would be directed to be stayed either under the provisions of section 10 of the Code of Civil Procedure or under the inherent power of the Court under section 151 of the Code of Civil Procedure, in view of a suit pending in this Court which was filed prior to the institution of the Application under the Act.

( 2 ) TO decide this question we like to state the facts which would be required. The opposite party/respondent herein Smt. Sulochana Devi Jalan in the year 1991 instituted a suit in the Original Side of this Court against the Vijaya Bank (hereinafter referred to as "the appellant"), inter alia, for a decree for a sum of Rs. 80,85,000/- and for other incidental reliefs. In the aforesaid suit, it has been alleged in the plaint that the appellant arbitrarily and capriciously and in breach of its duty reduced overdraft facilities and imposed conditions as to the working capital of the respondent thereby wrongfully preventing the respondent from carrying on her business and in consequence thereof the respondent was compelled to suspend her business and suffer loss and damages. In the aforesaid suit, the appellant has already entered appearance and filed its written statement denying the material allegations made in the plaint. When this suit was pending the appellant instituted a suit for a decree for a sum of Rs. 57,18,64. 84 against the respondent jointly and severely and for other reliefs. During the pendency of the aforesaid suit being Title Suit No. 116 of 1993 the said Act was enacted and pursuant to the provisions of the section 31 of the said Act, the said suit was transferred to the Debt Recovery Tribunal, Calcutta and the same has been registered as T. A. No. 47 of 1994 by the said Tribunal. An attempt was made by the plaintiff/respondent to transfer the aforesaid application being registered as T. A. No. 47 of 1994 now pending before the Debt Recovery Tribunal, Calcutta from it to this Court by making an application under clause 13 of the Letters Patent. A learned Judge of this Court, however, rejected the said application filed under clause 13 of the Letters Patent. An appeal was carried to a Division Bench of this Court against the aforesaid order of the learned trial Judge. The appeal is now pending decision, but the prayer for interim relief was refused. The plaintiff/respondent thereafter made an application in this Court praying that the proceedings being T. A. No. 47 of 1994 now pending before Debt Recovery Tribunal shall remain stayed till the disposal of the suit filed by the plaintiff being suit No. 572 of 1991 on the ground that as the suit filed by the plaintiff/respondent was prior to the filing of the proceeding before the Debt Recovery Tribunal being T. A. No. 47 of 1994 and the issues involved in the aforesaid two proceedings were same, and, therefore, the Court shall pass an order of stay of the pending proceedings before the Debt Recovery Tribunal till the suit being Suit No. 572 of 1991 pending in this Court is decided and disposed of. By the impugned order, the learned Trial Judge has allowed the said prayer of the plaintiff/r



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