IN THE HIGH COURT OF DELHI AT NEW DELHI
PRADEEP NANDRAJOG AND MUKTA GUPTA, JJ.
PUNJAB & SIND BANK - Petitioner
versus
M/S WHITEFIELD INTERNATIONAL PVT. LTD. & ORS – Respondents
W.P.(C) 6978, 3258/2015
Decided On : 27-04-2016
Judgment - Debts Recovery - Recovery of the Debts due to Banks and Financial Institutions Act, 1993 - Section 19, Section 20, Section 93, Section 98 of the NI Act, 1881 - [Facts of the Case] [Finding of the Court] [Issues] [Ratio Decidendi] [Final Decision]
Fact of the Case:
The case involved a dispute over credit facilities sanctioned by a bank to a company, the detection of fake letters of credit, and subsequent legal proceedings between the bank, the company, and the guarantors.
Finding of the Court:
The court found that the Debts Recovery Appellate Tribunal had not followed the necessary judgment tenets, leading to a second remand. The court expressed concern over the casual approach of the bank's counsel and the lack of reference to pleadings and evidence in the tribunal's order.
Issues: The issues included the legality of orders passed by the Debts Recovery Tribunal, the applicability of the NI Act, 1881, and the procedural irregularities in the tribunal's decision-making process.
Ratio Decidendi: The court held that the tribunal's failure to consider the legality of the orders and the lack of reference to evidence and pleadings warranted a remand. It emphasized the need for a decision-making process based on evidence and legal provisions.
Final Decision: The court set aside the tribunal's order, restored the appeals, and directed the tribunal to consider the grievances of the bank and the borrowers with reference to evidence and legal provisions, without any condition of pre-deposit.
PRADEEP NANDRAJOG, J.
1. It is trite that a judgment should commence by recording a brief overview of the facts of the case to set the scene followed by a succinct statement of the issues to foreshadow the structure, and only if relevant, a succinct statement of the procedural history of the case. Thereafter an impartial statement of the position of each party on each issue has to be recorded followed by a clear statement of the flaw in the loosing party’s position on each issue. Evidence supporting finding on facts and reference to law, standard or a fact upon which the conclusion is drawn needs to be noted.
2. Regretfully, the Debts Recovery Appellate Tribunal has, and if we may use the expression, with traces of contempt in its order, not followed the tenets of what a judgment should be. The result is, a second remand before the Debts Recovery Appellate Tribunal.
3. The 22 paged impugned order dated April 08, 2015 passed by learned DRAT traces the history till page 7 i.e. 1/3rd of the judgment is the narration of the procedural history, none of which was relevant save and except to note that on an earlier occasion three appeals, one filed by the bank and the other two by the principal borrowers and guarantors were dismissed by a common order which was recalled by it requiring the appeals to be decided afresh.
4. Unfortunately, the next 14 pages of the order makes no reference to any document proved and exhibited before the learned DRT and as we would be noticing hereinafter, two issues concerning the procedure followed by the learned DRT and in respect of which an interim order was passed and the legality thereof had to be determined by DRAT has not even been touched upon.
5. Since the matter would be on remand before the learned DRAT, we do not comment upon the merits of the controversy and would note only such facts as are relevant to justify the remand.
6. But before noting said facts, we bring on record our anguish at the fact that the counsel for the bank has been litigating very callously and casually, without even bothering to maintain the record of the Original Application. When the two writ petitions were listed before us on April 19, 2016, we were appalled at the fact that learned counsel for the bank was having not even 1/4th of the record of the Original Application and was very keen to argue the two writ petitions. Since the impugned order passed by learned DRAT was sans any reference to the pleadings and the evidence and was more in the nature of a narrative of facts, we had directed personal presence of the General Manager Law of Punjab and Sindh Bank and today Sh.R.K.Bansal, General Manager Law, Punjab and Sindh Bank has appeared. He has been present throughout the hearing of the two writ petitions and expresses regret at the manner at which the counsel for the bank had appeared on the last date. Fortunately today, after applying for and obtaining a certified copy of the record of the Original Application, with the services of a learned senior counsel, the bank has been able to put up a better show. Learned counsel for the bank concedes that when the writ petition No.6978/2015 was filed by the bank she did not have with her the record of the Original Application and as a matter of fact did not have with her the affidavit by way of evidence of the parties and the documents proved. learned counsel further concedes that when she appeared to oppose the writ petition No.3258/2016 on which date the writ petition filed by the bank was listed, she did not have the evidence led before the DRT and the documents proved. Sh.R.K.Bansal, General Manager Law, Punjab & Sindh Bank very fairly states that a certified copy of the record of the Original Application had to be applied for after the order dated April 19, 2016 was passed by this Bench because the counsel conducting the proceedings before the Debts Recovery T
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