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1998 Supreme(Cal) 78

High Court Of Calcutta
AMITAVA LALA
ALLAHABAD BANK - Appellant
Versus
GHANSHYAM DAS DAMANI - Respondent
Suit 619  Of  1989
Decided On : 02/23/1998

Advocates Appeared:
D.N.MALICK, M.L.CHATTERJI

The Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 does not have the jurisdiction to recall an ex parte decree passed by the High Court.

Headnote:

RECALLING EX PARTE DECREE - JURISDICTION - ORDER 9 RULE 13 CPC - SECTION 22(2)(G) RECOVERY OF DEBTS DUE TO BANKS AND FINANCIAL INSTITUTIONS ACT, 1993 - Ex parte decree passed by High Court can only be recalled by the High Court and not by the Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.

Fact of the Case:

An application was filed for recalling and/or setting aside an ex parte decree passed by the High Court in a suit. The plaintiff/respondent did not oppose the merit of the application but raised a point that in view of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, the application ought to be sent before the appropriate Tribunal under the aforesaid Act.

Finding of the Court:

The High Court held that an ex parte decree passed by the High Court can only be recalled by the High Court and not by the Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. The High Court further held that the suit filed in the Original Side is to be guided by the Original Side Rules, which have prevailing effect over the Code of Civil Procedure.

Issues: Whether the Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 has the jurisdiction to recall an ex parte decree passed by the High Court.

Ratio Decidendi: The High Court held that the Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 does not have the jurisdiction to recall an ex parte decree passed by the High Court. The High Court reasoned that Order 9, Rule 13 of the Code of Civil Procedure, which deals with the recalling of ex parte decrees, does not confer jurisdiction on the Tribunal to recall an ex parte decree passed by the High Court. The High Court further reasoned that Section 22(2)(g) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, which deals with the powers of the Tribunal, does not confer jurisdiction on the Tribunal to recall an ex parte decree passed by the High Court.

Final Decision: The High Court allowed the application for recalling and/or setting aside the ex parte decree passed by the High Court and directed the Registrar, Original Side to transfer the suit to the Tribunal formed under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 for its disposal.

AMITAVA LALA, J.


( 1 ) THIS is an application for recalling and/or setting aside ex parte decree dated 31st January, 1994 Parties have filed their respective affidavits. At the time of hearing, the plaintiff/respondent did not oppose the merit of the application but raise one point that in view of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 the application ought to be sent before the appropriate Tribunal under the aforesaid Act.

( 2 ) THE petitioner herein stated that he has no objection in transferring the suit from this High Court to the appropriate Tribunal but the suit in which an ex parte decree has passed by this Court ought to be recalled and/or set aside first by this Court then the suit can be transferred there.

( 3 ) IT is high time to deliver a judgment on the above issue.

( 4 ) EX parte decree in a suit has to be recalled and/or set aside under Order 9, Rule 13 of the Code of Civil Procedure. It appears therein that in any case in which a decree is passed ex parte against the defendant, he may apply to the Court by which a decree was passed for an order to set it aside. Therefore, the Court heard the suit alone has exclusive jurisdiction to entertain, try and determine the application in respect of recalling and/or setting aside the ex parte decree. Passing of decree, recalling and/or setting aside the decree and dismissal of the suit stands on a same line. In other words, one is supplementary to others.

( 5 ) I have carefully considered the various Sections of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 I found that the Tribunal can exercise, on and from the appointed day, the jurisdiction, powers and authority to entertain and decide applications from the Banks and Financial Institutions for Recovery of Debts due to such Banks and Financial Institutions. Therefore, the scope of the authority of the Tribunal is very much restricted. It also appears that jurisdiction of other Court is barred except the Supreme Court and High Court exercising jurisdiction under Articles 226 and 227 of the Constitution of India. For the purpose ofproceeding with the matters the Tribunal will discharge the functions under this Act, the same powers as are vested in the Civil Court under Code of Civil Procedure, 1908 while trying a suit in respect of few matters. One of such is under Section 22 (2) (g) setting aside any order of dismissal of any application for default or any order passed by it ex parte. Here also I found that the scope of setting aside is limited and restricted in passing an order by it ex parte.

( 6 ) THEREFORE, the Order 9, Rule 13 of the Code of Civil Procedure and Section 22 (2) (g) will be read side by side. In the earlier one the Court which was passed decree can pass an order to set aside and in the later one setting aside any order of dismissal of any application for default or any order passed by 'it' ex parte. The cardinal principle is if the suit is decreed ex parte by the Civil Court it should be revived by the Civil Court alone and if order is passed ex parte before the Tribunal it will be revived by it alone. If the suit decreed by the High Court and recalled by the tribunal under control and supervision of such High Court, it will be a last day of the judiciary. Incidentally High Court is one having different jurisdiction. There should be a limitation as to how far Tribunal should proceed with a matter assigned before it and an unfettered right to the Tribunal, if at all given by the legislature may create hazardous situation in the judicial discipline.

( 7 ) MOREOVER the suit filed in the Original Side is to be guided by the Original Side Rules. Original Side Rules has prevailing effect over the Code of Civil Procedure. In such a situation, an application of Order 9, Rule 13 cannot be said to be an application under Order 9, Rule 13 of the Code of Civil Procedure alone but an application both under the Original Side Rules as well as Code of C





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