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1997 Supreme(Guj) 411

Gujarat High Court
Judgename :C.K.THAKKER, S.D.Pandit
BANK OF INDIA - Appellant
Versus
BARODA CABLES PRIVATE LIMITED - Respondent
L.P.A. 470 of 1997
Decided On : 09/01/1997

Advocates Appeared: H.M.PAREKH, J.T.TRIVEDI, K.C.SHAH, S.N.SHELAT

Headnote:(a) Constitution of India - Arts. 226 & 227 - High Court - Letters Patent Appeal - Maintainability - Though the application initially was filed under Art. 227 but in the circumstances treated under Art. 226 - LPA therefore maintainable.

       It is true that the learned Single Judge has observed in the order that the petition was under Art. 227 of the Constitution. But it is clear that in substance and in reality, the petition was treated as under Art. 226 of the Constitution. The first sentence of the order, dated November 6, 1996 makes it clear that another petition being Special Civil Application No. 2170 of 1995 involving challenge of vires of the Act was pending. It is true that in the present petition {Special Civil Application No. 8588 of 1996} Constitutional validity of the Act was not challenged. The fact, however, remains that when the Court issued notice and granted ad-interim relief, the Court considered the fact that validity of the Act was challenged in some other matter which was pending. It is in the light of that fact that ex-parte rule was issued, as-interim relief was granted and notice was issued as to why ad-interim should not be made interim relief. Subsequently, ad-interim relief was confirmed and made interim relief. In these circumstances, in our opinion, the petition cannot be said to be under Art. 227 of the Constitution of India and Letters Patent Appeal would, therefore, be maintainable.

       [Para 5]

       (b) Recovery of debts due to Banks and Financial Institutions Act, 1997 - Secs. 31 & 20 - Orders of Debt Recovery Tribunal - Remedy against - Is appeal to appropriate forum under Sec. 20 and not application under Art. 227 of Constitution of India to the High Court - Interim order granted by Single Judge vacated.

       There is no doubt in our mind that there is no provision in the Act stating that an appeal would lie before an Appellate Tribunal only when the order is final in nature. On the contrary, looking to the above provisions in their entirety, it is clear that any order passed by the Debt Recovery Tribunal is subject to challenge under Sec. 20 before the Appellate Tribunal. If it is so, in our opinion, the contention of Mr. Trivedi is well-founded that the aggrieved party should approach the Appellate Tribunal for redress of grievances.

       [Para 12]

       Interim relief which was granted by the learned Single Judge deserves interference and it should be vacated. Since the order, according to us, is subject to appeal, an appeal can be filed before the Appellate Authority.

       [Para 13]

       

C. K. THAKKER, J.

( 1 ) THIS appeal is filed against an order passed by the learned single Judge on 27/02/1997 in Special Civil Application No. 8588 of 1996.

( 2 ) FEW relevant facts for deciding this Letters Patent Appeal may now be stated : 2. 1 The appellant is Bank of India ("bank" for short ). It filed Special Civil suit No. 89 of 1985 in the Court of Civil Judge (S. D.), Godhra for recovery of amount of Rs. 82,18,857. 02 ps. with interest and costs. It was against the respondent nos. 1 to 3. During pendency of the suit, it appears that some arrangement was arrived at between the debtors, i. e. , respondent Nos. 1 to 3 and Sunglow Metals private Limited, Respondent No. 5 herein, pursuant to which an application was made by the said Sunglow Metals Private Limited before the learned Civil Judge to be joined as party to the suit. Likewise, the respondent No. 1 also made an application under Order 23 Rule 3 of the Code of Civil Procedure, 1908 stating therein that a settlement between defendant Nos. 1 to 3 and Sunglow Metals Private Limited which was accepted by the Bank. On the basis of the said compromise and settlement, a decree was to be passed. In the meanwhile, however, during the pendency of the suit, Debt Recovery Tribunal for the State of Gujarat, Union Territories of Dadra and Nagar Haveli, Daman and Diu came to be established at Ahmedabad in December, 1994. The appellant-Bank, therefore, filed an application on 22/03/1995 for transferring the case to the Debt Recovery Tribunal. By an order dated 18/04/1995 the Civil Judge (S. D.), Godhra transferred the suit to Debt Recovery Tribunal and all the records and proceedings were forwarded to the said Tribunal in accordance with the provisions of Sec. 31 of Recovery of Debts due to Banks and financial Institutions Act, 1993 (hereinafter referred to as "the Act" ). When the records and proceedings were received by Debt Recovery Tribunal, two applications were filed before the Tribunal being Ex. R. 405 and Ex. R. 407 requesting the tribunal to re-transfer the matter to the Court of learned Civil Judge (S. D.), Godhra as the Tribunal had no jurisdiction to entertain the case and the matter can only be decided by a civil Court. Both these applications were rejected by the Tribunal and review applications also met with the same fate. Since the applications were disposed of and no relief was granted to the respondents, the above petition was filed by Baroda Cables Private Limited, being Special Civil Application No. 8588 of 1996. When the matter was placed for admission before the learned single Judge, on 6/11/1996 the following order was passed :-"special Civil Application No. 2170 of 1995 involving challenge of vires of the recovery of Debts due to the Banks and Financial Institutions Act, 1993 is pending. In the present matter, the question is with regard to recording of settlement under rule 3 Order 23 of the Code of Civil Procedure and joinder of purchaser in the pending proceeding. The Tribunal has dismissed the application of the concerned parties. That is how the petitioner is before this Court. Rule returnable on 28-11-1996. Ad-interim stay of the proceedings in terms of para 26 (iv ). Still then Notice as to interim relief returnable on that date. "para 26 (iv) of the petition reads as under :-"that pending the admission, hearing and final disposal of this Special Civil application Your Lordships be graciously pleased to stay further proceedings before the Honble the Debts Recovery Tribunal, Ahmedabad in Special Civil Suit No. 89 of 1985 transferred from the Court of Civil Judge (S. D.), Godhara, District Panchmahal. "

( 3 ) PURSUANT to notices issued by the Court, parties appeared, hearing took place and by the impugned order dated 27/02/1997, the learned single Judge confirmed ad interim relief granted earlier and it was ordered to be continued till disposal of the petition. That order was passed on 27/02/1997. It is against that order the present Letters Patent Appe























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