IN THE HIGH COURT OF DELHI AT NEW DELHI
MANMOHAN SINGH, J.
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
YOGESH BAWEJA & ANR – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
SAXENA & ORS – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
ANIL KUMAR SHARMA & ANR – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
KAJAL CHOPRA & ORS – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
RAKESH KUMAR SARNA & ANR – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
NARINDER SINGH MEHTA & ANR – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
MUKESH & ANR – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
MUKESH CHAUHAN & ORS – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
RAJENDER SINGH & ANR – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
RAHUL YADAV & ORS – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
SURENDER SINGH & ANR – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
VINEET RANA & ANR – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
VINOD KUMAR & ANR – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
CHARANJIT SINGH & ANR – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
SANJAY SONI & ANR – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
DINESH KHANNA & ANR – Respondents
AND
KOTAK MAHINDRA BANK LTD – Petitioner
Versus
DEVENDRA KUMAR & ANR – Respondents
CM(M) 168/2011, 169/2011 & C.M. Nos. 3187/2011 & 1321/2013, CM(M) & C.M. No.3189/2011, CM(M) 170/2011 & C.M. No.3191/2011, CM(M) 171/2011 & C.M. No.3193/2011, CM(M) 172/2011 & C.M. No.3195/2011, CM(M) 173/2011 & C.M. No.3197/2011, CM(M) 206/2011 & C.M. No.3926/2011, CM(M) 207/2011 & C.M. No.3945/2011, CM(M) 208/2011 & C.M. No.3947/2011, CM(M) 209/2011 & C.M. No.3949/2011, CM(M) 210/2011 & C.M. No.3951/2011, CM(M) 211/2011 & C.M. No.3953/2011, CM(M) 212/2011 & C.M. No.3955/2011, CM(M) 213/2011 & C.M. No.3957/2011, CM(M) 214/2011 & C.M. No.3959/2011, CM(M) 215/2011 & C.M. No.3961/2011, CM(M) 216/2011 & C.M. No.3963/2011
Decided on: 22nd July, 2013
Stamp Duty - Assignment Deeds - Indian Stamp Act, 1899 - Civil Procedure Code, 1908 - [Section 33 of the Stamp Act, 1899, Order 16 Rule 10 of the Code of Civil Procedure, 1908] - The court discussed the provisions of Section 33 of the Stamp Act, 1899, which relates to impounding of documents, and Order 16 Rule 10 of the Code of Civil Procedure, 1908, designed to protect the interest of a party against a 'Non Cooperative' witness. The court emphasized that the production of the instrument voluntarily by the party alone is required, and the court cannot force the production of the same. The judgment in District Registrar Vs. Canara Bank, AIR 2005 SC 186 was cited to establish the element of voluntariness in seeking adjudication under Section 31 of the Stamp Act, 1899. The court also highlighted the absence of powers in N.C.T. of Delhi to compel production of an original document from a party to impound the same or levy penalty or for direction to pay proper stamp duty/penalty on failure to produce the original.
Fact of the Case:
The petitioner, M/s. Kotak Mahindra Bank Limited, challenged the orders compelling the production of original Assignment Deeds and the issuance of bailable warrants against the chairman of the bank. The respondent, ICICI Bank, assigned its rights in the NPA to the petitioner, and the trial court directed the production of the original assignment deeds, leading to the issuance of bailable warrants against the chairman of the petitioner bank.
Finding of the Court:
The court found that the orders compelling the production of original Assignment Deeds and the issuance of bailable warrants were not sustainable in law and quashed the same.
Issues: The issues involved the legality of compelling the production of original Assignment Deeds and the issuance of bailable warrants against the chairman of the petitioner bank.
Ratio Decidendi: The court emphasized the voluntary production of the instrument by the party alone, the absence of powers in N.C.T. of Delhi to compel production of an original document from a party to impound the same, and the element of voluntariness in seeking adjudication under Section 31 of the Stamp Act, 1899.
Final Decision: The impugned orders compelling the production of original Assignment Deeds and the issuance of bailable warrants were quashed.
MANMOHAN SINGH, J.
1. By this common order, I shall disposed of the above mentioned 17 petitions in which similar issue is involved.
2. In these petitions, the petitioner has filed Civil Miscellaneous (Main) petition under Article 227 of the Constitution of India against the orders dated 3rd November, 2010, 18th December, 2010, 28th January, 2011 and 4th February, 2011 as passed by Sh.Surinder S.Rathi, Additional District Judge, Tis Hazari, Delhi in Civil Suit No.73/2010 entitled “Kotak Mahindra Bank Ltd. Vs. Yogesh Baweja”.
3. The petitioner i.e. M/s. Kotak Mahindra Bank Limited is a corporate body incorporated and registered under the Companies Act, 1956 and carrying its business of banking under Banking Regulation Act, 1949 and is having its registered office at 36-38A, Nirman Bhawan, 227, Nariman Point, Mumbai-400021 and inter alia Branch office at G-9, Vikas Puri, New Delhi.
4. The respondents in the matters are the borrowers who had taken the loan from Respondent No.2 ICICI Bank and against whom various suits for recovery have been filed and are pending adjudication before the learned trial courts.
5. As mentioned earlier, by the present petitions the petitioner challenges the order(s) dated 3rd November, 2010, 18th December, 2010, 28th January, 2011 and 4th February, 2011 whereby the learned trial court has been issuing directions to the petitioner and compelling the petitioner to produce the original Deeds of Assignment. The learned trial court has also issued bailable warrants against the chairman of the petitioner Bank to enforce its direction to produce the original deed of assignment so as to enable the learned trial court to impound the same.
6. It is argued by petitioner that the aforesaid order directing coercive measures and forcing the plaintiff to produce the original document is perverse, illegal and against the established provisions of law. The learned trial court while considering the applications for substitution compelled the petitioner to produce documents in a suit for recovery thereby giving a complete go by to the process laid down in law and forced the petitioner to produce the documents and even issued bailable warrants against the chairman of the petitioner bank with the direction to the Police Commissioner to execute the same.
7. The respondent No.2/ICICI Bank by way of Assignment Deed, assigned all its rights, titles, interests in the NPA in favour of Kotak Mahindra Bank Limited i.e. Petitioner Bank. The copy of the Deeds of Assignment dated 31st December, 2007 are filed. The learned trial court vide order dated 3rd November, 2010 directed the petitioner bank to produce the original assignment deeds. The request was made by petitioner before the learned trial court that the application be adjudicated upon in the absence of the original and on the basis of a copy of the same which was already on record. But learned trial court instead of taking a view on the application/suit, vide order dated 18th December, 2010 issued direction to Chairman of the petitioner Bank to produce and file the original assignment deed and also expressed its opinion and recorded that there may be necessity of impounding the same under Section 33 of the Indian Stamp Act, 1899.
8. As no original deeds of assignment could be produced by the petitioner, the learned trial court vide order dated 28th January, 2011 issued notice of Proclamation against the chairman of the petitioner bank, Sh. Uday Kotak and further by order dated 4th February, 2011 issued bailable warrant against Sh. Uday Kotak to the tune of Rs.50,000/- with one surety of the like amount.
9. Section 33 of the Stamp Act, 1899 which relates to impounding of the documents is applicable only when the original document is actually and voluntarily brought before the court of law. Further contrary to forcing any party to produce the original document it is only when the document chargeable is produced or comes in the performance of the working that the same ca
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