IN THE HIGH COURT OF JUDICATURE AT MADRAS
RMT. TEEKAA RAMAN, P.D. AUDIKESAVALU, JJ.
M/s. Sri Devi Karumariamman Educational Trust, Represented by its Trustee J. Kumaran & Others - Petitioners
Versus
Central Bank of India - Respondent
C.R.P. No. 1790 of 2019, C.M.P. No. 11733 of 2019
Decided On : 22-05-2019
Recovery of Debts and Bankruptcy Act - Recovery of Debt - Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 - [Section 19] - The court directed the appearance of the Assistant General Manager, Central Bank of India, Mid Corporate Branch, Chennai for cross-examination and set a time limit for the final arguments and order to be passed by the Tribunal.
Fact of the Case:
The Respondents filed an application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, in Debt Recovery Tribunal-II, Chennai for the recovery of a debt. The Petitioners sought a direction for cross-examination of the bank witness before the final hearing. The witness was cross-examined without filing a proof affidavit, leading to a dispute.
Finding of the Court:
The court declined to eschew the evidence of the witness but imposed costs on the First Respondent for deputing a person who had not filed a proof affidavit for cross-examination. The court permitted the cross-examination of the witness on a specified date and subsequently until completed.
Issues: Dispute over the cross-examination of the bank witness and the conduct of the First Respondent in deputing a person who had not filed a proof affidavit for cross-examination.
Ratio Decidendi: The court declined to eschew the evidence of the witness but imposed costs on the First Respondent for deputing a person who had not filed a proof affidavit for cross-examination. The court permitted the cross-examination of the witness on a specified date and subsequently until completed.
Final Decision: The court permitted the cross-examination of the witness on a specified date and subsequently until completed, and imposed costs on the First Respondent for deputing a person who had not filed a proof affidavit for cross-examination.
P.D. Audikesavalu, J.
1. The Civil Revision Petition arises out of the order dated 16.05.2019 passed in I.A. No. 547 of 2019 in O.A. No. 496 of 2016 on the file of the Debt Recovery Tribunal-II, Chennai.
2. The Respondents have instituted the application bearing O.A. No. 496 of 2016 under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, in Debt Recovery Tribunal-II, Chennai against the Petitioner for recovery of debt of Rs. 136,29,48,050.76/-, which is the amount due under the credit facilities availed by the First Petitioner and the repayment of which has been personally guaranteed by the Second to Fifth Petitioners. The Petitioners had filed C.R.P. No. 1753 of 2019 before this Court for a direction to the Presiding Officer, Debt Recovery Tribunal-II, Chennai for disposing of the application bearing I.A. No. 494 of 2019 for cross examination of the bank witness on merits before proceeding with the final hearing of O.A. No. 496 of 2016. When that Civil Revision Petition came up for hearing during the vacation sitting of this Court on 08.05.2019, this Court with the consent of the parties disposed the matter holding as follows:-
“2. When the matter is taken up for hearing, Mr. Aravindh Pandian, Learned Senior Counsel appearing for the Petitioners would submit that there is an I.A. filed for the purpose of cross examination of the witness and that he wanted to examine the Assistant General Manager, Central Bank of India, Mid Corporate Branch, Chennai.
3. Mr. N.V. Srinivasan, Learned Counsel appearing for the First Respondent/Bank would submit that he has no objection for cross examination of the Assistant General Manager, Central Bank of India, Mid Corporate Branch, Chennai, however, submitted that as two officers of the Bank are due to retire by the end of this month, a decision on merits could be arrived at after cross examination is over and that this Court may fix the time limit.
4. Mr. Nithyaesh Natraj, Learned Counsel appearing for the Second Respondent/Bank would submit that the matter is pending from the year 2016 and that the Petitioner is adopting dilatory tactics and avoiding payment of debt due to the Bank.
5. It is trite that when the Applicants are disputing the entries in the Statement of Accounts as incorrect, they should be given an opportunity to cross examine the witness of the Bank [vide (i) M/s. Agnite Education Ltd., -vs- State Bank of India and others (W.P. No. 8985 of 2017 and W.M.P. No. ;9896 of 2017) and (ii) UCO Bank -vs- A. Jaffar Alikhan and others (C.R.P. (PD) Nos. 399 to 401 of 2016 and C.M.P. Nos. 2159 to 2161 of 2016)].
6. Taking note of the consent made by the First Respondent/Bank that they are willing to produce the witness for the purpose of cross examination and that the Petitioners are also willing to cross examine the said witness, the Assistant General Manager, Central Bank of India, Mid Corporate Branch, Chennai is directed to appear before the Debts Recovery Tribunal and his cross examination shall be completed on or before 17.05.2019. The final arguments shall be concluded on or before 24.05.2019 so that the order could be passed by the Tribunal on or before 31.05.2019.”
In furtherance to the aforesaid order passed by this Court, the matter was taken up for hearing before the Debt Recovery Tribunal-II, Chennai on 13.05.2019, 14.05.2019 and 16.05.2019 on which dates, one Mr. G.S. Suresh, Chief Manager of the First Respondent was cross examined by the Learned Counsel for the Petitioners instead of the Assistant General Manager as directed by this Court. It requires to be noticed here that this Court had specifically directed the Assistant General Manager of the First Respondent, who had filed the proof affidavit to be cross examined, but instead of doing so, the said Mr. G.S. Suresh had entered the witness box without filing any proof affidavit in the matter. The certified copy of the order dated 08.05.2019 in C.R.P. No. 1753 of 2019 was furnished to the parties on 14.05.2
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