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1996 Supreme(Cal) 52

High Court Of Calcutta
NRIPENDRA KUMAR BHATTACHARYYA
SUSHIL KUMAR JAISWAL - Appellant
Versus
BANK OF INDIA - Respondent
C. O.  1985  Of  1995
Decided On : 02/08/1996

Advocates Appeared:
ABHIJIT CHATTERJI, Supriya Ranjan Saha, UTPAL BOSE

The High Court's power to interfere with a Tribunal order under Art. 227 of the Constitution cannot be converted into an appellate power, and an alternative remedy by way of appeal under a relevant statute will bar the exercise of revisional jurisdiction.

Headnote:

RECOVERY OF DEBTS DUE TO BANKS AND FINANCIAL INSTITUTIONS ACT, 1993 - SECTION 18, 20, 21 - ART. 226, 227 OF THE CONSTITUTION OF INDIA - HIGH COURT'S POWER TO INTERFERE WITH TRIBUNAL ORDER - SCOPE OF APPEAL V. REVISION - ALTERNATIVE REMEDY.

Fact of the Case:

Petitioner challenged the Debts Recovery Tribunal's order adjudging them as debtors and allowing the Bank to recover a sum of Rs. 10,08,889.73 from them, under Art. 227 of the Constitution.

Finding of the Court:

The High Court held that it had the power to interfere with the Tribunal's order under Art. 227, but that power could not be converted into an appellate power. The Court noted that Section 20 of the Act provided for an appeal against the Tribunal's order, and that the scope of appeal was wider than that of revision under Art. 227. The Court also noted that Section 21 required the appellant to deposit 75% of the debt amount with the Appellate Tribunal, which the petitioners had not done.

Issues: 1. Whether the High Court could interfere with the Tribunal's order under Art. 227 of the Constitution? 2. Whether the petitioners had an alternative remedy by way of appeal under Section 20 of the Act?

Ratio Decidendi: 1. The High Court has the power to interfere with the Tribunal's order under Art. 227 of the Constitution, but that power cannot be converted into an appellate power. 2. The petitioners had an alternative remedy by way of appeal under Section 20 of the Act, which provided for a wider scope of relief than revision under Art. 227. The requirement to deposit 75% of the debt amount under Section 21 did not bar the petitioners from pursuing the appeal.

Final Decision: The High Court dismissed the revision petition and vacated all interim orders. There was no order as to costs.

NRIPENDRA KUMAR BHATTACHARYYA, J.


( 1 ) THE main revisional application is taken up for hearing along with the application for interim order in view of the Court's order dated 6-2-1996 Both the matters are disposed of by the following order.

( 2 ) HEARD the submissions of the learned Advocate for the petitioners, Mr. Abhijit Chatterjee appearing with the learned Advocate Mr. Supriya Ranjan Saha and the learned Advocate for the opposite party No. 1, Bank of India, Mr. Utpal Bose appearing with the learned Advocate Mr. Bidyut Kumar Banerjee. Mr. Banerjee undertakes to file his Vakalatnama on behalf of the Bank of India in course of this day. Let that undertaking be recorded. Considered the materials on record. The Power filed in Court just now be kept on record. By the instant application under Art. 227 of the Constitution of India, the petitioners have challenged the judgment and/or final order passed by the Debts Recovery Tribunal on 3rd August, 1995, in Original Application No. 86 of 1994, by which the Tribunal adjudged the petitioners as debtors and further held that the applicant-Bank is entitled to realise a sum of Rs. 10,08,889. 73 from the petitioners. This judgment and/or final order has been challenged in the instant revision under Art. 227 of the Constitution of India.

( 3 ) IN this background Mr. Chatterjee contended that the Court can interfere and set aside the order passed by the Tribunal in exercise of its power under Art. 227 of the Constitution of India. For the purpose of showing that the Court has the power to interfere under Art. 227 of the Constitution of India, Mr. Chatterjee referred to Section 18 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (which term will be referred to herein as 'the Act') and also certain decisions, namely, the State of U. P. v. District Judge, Unnao, reported in AIR 1984 SC 1401 : (1984 All LJ 175), Thakur Jugal Kishore v. Sitamarhi Central Co-operative Bank Ltd. , reported in AIR 1967 SC 1494 : (1967 0 Crlj 1380) and Raghu Nandan v. W. B. Board of Secondary Education, reported in 1992 (1) CLJ 52 Mr. Chatterjee submitted that those decisions have been referred to for the purpose of showing in principle that in the appropriate cases the High Court can interfere with the order passed by the Tribunal under Art. 227 of the Constitution of India.

( 4 ) MR. Bose on the other hand contended that there is no dispute that the Court has the power under Art. 227 of the Constitution of Indiato interfere with the order passed by the Tribunal in an appropriate case but the same power or application under Art. 227 of the Constitution of India cannot be converted to a power in appeal. In other words, Art. 227 of the Constitution cannot be converted as an appellate power. For that Mr. Bose relied on a decision of the Apex Court in the case of Miss Maneck Custodji Surjarji v. Sarafazali Nawabali Mirza, reported in AIR 1976 SC 244

( 5 ) MR. Bose further contended that Art. 227 of the Constitution of India should not be exercised ordinarily and it must be exercised very sparingly in an appropriate case. Mr. Bose further submitted that the Act provides in Section 20 the provision for appeal and by-passing that Art. 227 cannot be resorted to as an alternative remedy.

( 6 ) HEARD the submissions of the learned Advocate for the parties and considering the materials on record, it appears that admittedly this is a revision under Art. 227 of the Constitution of India challenging the judgment and/or final order passed by the Tribunal. Admittedly, there is a provision in the Act, being Section 20 providing appeal against such judgment and/or order. Admittedly, Section 18 of the Act operates as a bar of jurisdiction regarding the Courts or other alternative forum for exercising any jurisdiction, powers or authority (except the Supreme Court and a High Court exercising jurisdiction under Articles 226 and 227 of the Constitution) in relation to the matters specified in Section 1

(





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