1997 Supreme(Ker) 109
Judges : P.K.BALASUBRAMANYAN
Walayar Motels Pvt.Ltd. - Appellant
Versus
State Bank of Travancore - Respondent
Case No : R.P. No. 100 of 1997 in C.R.P. 1563 of 1993
Decided On : 03/24/1997
Advocates Appeared :
T.D. Rajalakshmy, E.R. Venkiteswaran & P.N. Mohanan For Petitioners M. Pathrose Mathai For Respondents
The jurisdiction of the court in revision was not affected by the Recovery of Debts Act, and there was no error in the orders made by the court.
Headnote:
Review Petition - Jurisdiction of Court - Recovery of Debts Due to Banks and Financial Institutions Act, 1993 - S.3, S.17, S.18, S.31 - The court dismissed the Review Petition challenging the appointment of a Receiver and the jurisdiction of the court under the Recovery of Debts Act, finding no error in the orders warranting correction in review jurisdiction.
Fact of the Case:
The judgment debtors filed a review petition challenging the appointment of a Receiver and the jurisdiction of the court under the Recovery of Debts Act, 1993.
Finding of the Court:
The court found no error in the orders warranting correction in review jurisdiction and dismissed the Review Petition.
Issues: Jurisdiction of the court under the Recovery of Debts Act, 1993, and the appointment of a Receiver.
Ratio Decidendi: The court held that the jurisdiction of the court in revision was not affected by the Recovery of Debts Act, and there was no error in the orders made by the court.
Final Decision: The Review Petition was dismissed by the court.
Balasubramanyan, J.
This application for review is filed by the judgment debtors. In "execution of a decree for morey involving more than Rs. 10 lakhs the decree holder Bank sought for the appointment of a Receiver for the first judgment debtor undertaking. By order dated 24.8.1993 the executing court appointed a Receiver. That order was challenged in the above revision, C.R.P. 1563 of 1993. Therein, the judgment debtors moved CMP 2512 of 1993 for a stay of the order of the Court below appointing the Receiver. After hearing counsel for the judgment debtor and the decree holder Bank, this court passed an order on 3.9.1993 granting the judgment debtors an interim stay on condition that they made a payment of Rs. 5 lakhs within a period of seven days from the date of that order and further amount of Rs. 5 lakhs within a period of one month from that order. This Court also provided that in case any of those payments were defaulted, the interim stay granted would stand automatically cancelled. The judgment debtors did not comply with that condition. The Court below instead of taking further steps as made clear in the interim order of this Court dated 3.9.1993, dragged its feet and did not insist on the Receiver appointed, immediately taking possession of the Motels and its assets. One can only take it that the Bank Officers were remiss in bringing to the notice of that court the need for the issue of a direction to the Receiver, on the failure of the judgment debtors to comply with the conditions imposed by this court.
2. The Civil Revision Petition came up for hearing on 8.11.1996. The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 came into force on 24.6.1993. The concerned Tribunals were constituted and notification in that behalf under S.3 of that Act was issued by the Central Government on 4.11.1996. When the Civil Revision Petition came up for hearing on 8.11.1996, no argument based on the Debts Recovery Act was raised before this court. This court dismissed the Civil Revision Petition on 8.11.1996 and refusing to accept the submission of counsel for the judgment debtors that the Civil Revision Petition had become infructuous, proceeded to point out the impropriety in the inaction of the officers of the Bank, the want of care on the part of the Receiver in doing his duty and the lower court in not taking note of the interim order passed by this court and in ensuring that its order appointing the Receiver was implemented and directed the executing court to ensure that the Receiver appointed forthwith takes possession of the property scheduled to the execution petition and if necessary after replacing the original Receiver, with another Receiver. Thereafter, the executing court revived the execution petition which apparently had been closed and proceeded to take steps to appoint a Receiver in the place of the original Receiver. The judgment debtors then filed E.A. 48 of 1997 requesting that court to review its order appointing the Receiver. On 8.12.1996 the executing court took the view that the court was bound by the directions made by this Court in the order dated 8.11.1996 and could not go behind that order or review its order passed long back appointing a Receiver. When that order in E.A. 48 of 1997 was sought to be challenged by way of revision, this Court dismissed that revision finding that there was no error of jurisdiction committed by the executing court. Thereafter, the judgment debtors filed CMP 177 of 1997 before this court in the revision which had already been disposed of. That petition purported to be one for clarifying whether the appointment of a Receiver in E.P. 213 of 1993 in O.S.38 of 1988 still subsisted when the execution petition had earlier been dismissed by the executing court presumably for the failure of the officers of the decree holder Bank to take the necessary steps. After hearing both sides, this court passed an order dated 7.2.1997, holding up the Receiver taking