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ASHOK KUMAR GAUR
Hotel The Royal Plaza – Appellant
Versus
Bank Of India – Respondent
ORDER
1. The instant petition challenges order dated 22.10.2019 passed by the Debt Recovery Tribunal, Jaipur and judgment dated 27.04.2021 passed in O.A. No.989/2018.
2. Counsel for the petitioners submitted that the present petitioners had taken a term loan for business purposes from the respondent-bank in the year 2013. The petitioners paid regular EMIs but due to certain financial difficulties and on account of loss in business, the account of the petitioners become NPA.
3. Counsel submitted that Ministry of Finance issued a Gazette Notification dated 06.09.2018 whereby limit of recovery proceedings under The Recovery of Debts due to Banks and Financial Institutions Act, 1993 (for short 'the Act of 1993') before the DRT was increased from Rs.10 lacs to Rs.20 lacs and matters above Rs.20 lacs could be filed before the DRT.
4. Counsel submitted that the Notification dated 06.09.2018 was put to challenge before the Division Bench of this Court and there was an interim order passed on 11.11.2018.
5. Counsel for the petitioners submitted that respondent-bank taking advantage of the stay granted by this Court, filed an original application under Section 19 of Recovery of Debts and Bankrupt
The authority of the Debt Recovery Tribunal to revive proceedings in accordance with the Ministry of Finance Gazette Notification dated 06.09.2018 and the availability of statutory alternative remedy....
The impugned communication was without authority and competence, and ultra vires the provisions of Section 1(4) of the Act of 1993. The Debt Recovery Tribunal, Guwahati cannot proceed with the adjudi....
The court emphasized the importance of considering the submissions and documents produced by the parties in reaching a judgment and held that a judgment passed without such consideration was unsustai....
Ext.P4 notification enhancing DRT's pecuniary limit to Rs.20 lakhs supersedes previous restrictions on debt recovery actions below this threshold.
The court emphasized the importance of following the procedural requirements under the R.D.B. Act, 1993 and the availability of alternative remedies before approaching the High Court directly.
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