Hon’ble Dilip Gupta, J.—This petition seeks the quashing of the order dated 8th May, 2012 passed by the Debts Recovery Appellate Tribunal, Allahabad (hereinafter referred to as the ‘Appellate Tribunal’) by which the appeal filed by the respondent-Bank of India against the order dated 22nd September, 2005 passed by the Debts Recovery Tribunal, Jabalpur (hereinafter referred to as the ‘Tribunal’) has been allowed and the order passed by the Tribunal has been set aside with a direction to the Tribunal to decide the dispute on merits.

2. The respondent Bank of India had filed Original Application No. 165 of 2002 under Section 19 of the Recovery of Debts Due to the Banks and Financial Institutions Act, 1993 (hereinafter referred to as the ‘Act’) for recovery of Rs. 1,05,57,987.31 with interest from petitioner-defendant No. 4-M/s. Trademan International Pvt. Ltd., Indore. No relief was claimed from defendant Nos. 1, 2 and 3 of the Original Application and they have been impleaded as respondent Nos. 3, 4 and 5 in this petition. The Original Application was dismissed by the Tribunal for the reason that the Bank had omitted to claim this relief in Suit No. 802 of 2002 which the Bank had earlier filed in the Singapore High Court against respondent Nos. 3, 4 and 5 of this petition and in view of the provisions of Order II, Rule 2 (hereinafter referred to as ‘Order II, Rule 2’) of the Code of Civil Procedure, 1908 (hereinafter referred to as the ‘CPC’), could not sue afterwards for the relief omitted to be claimed.

3. The respondent-Bank of India has its Head Office at Mumbai and a branch of the Bank is situated at Singapore. Respondent No. 3-M/s. Som International Pvt. Ltd., Singapore (hereinafter referred to as the ‘Singapore Company’), is a Private Limited Company incorporated at Singapore of which respondent No. 4-Som Nath Sood and his wife respondent No. 5-Renu Sood are the Directors. The Singapore Company, which is engaged in wholesale import and export of Timber Logs etc., approached the Singapore Branch of the Bank of India for availing banking facilities like Letter of Credit Facility, Trust Receipt with Letter of Credit Facility and Foreign Purchase Facility of Bills of Exchange and for this purpose filed an application before the Bank. In this application the Singapore Company represented that all their bills are drawn in India; 90% bills are drawn under Letter of Credit in Indian Banks; turnover has increased from 27 million Singapore Dollars in the year 1999 to 50,000,000 Singapore Dollars in the year 2000 and the projected turnover for the year 2001 would be 80,000,000 Singapore Dollars.

4. The Singapore Branch of the Bank of India sanctioned the following credit facilities to the Singapore Company by the letter dated 3rd May, 2001.

1. Letter of Credit (DP) for 4,000,000 Singapore Dollars;

2. Trust Receipt (30 days) for switching purpose for 3,000,000 Singapore Dollars;

3. Foreign Bills Purchase (DP) including discount document under Letter of Credit till acceptance for 3,000,000 Singapore Dollars.

5. The said sanction letter contained various stipulations and for compliance of the conditions mentioned therein, the Singapore Company not only confirmed its acceptance to the facilities and the terms and conditions to which the facilities were subject to but also executed and delivered the security documents to the Bank and respondent No. 4-Som Nath Sood and respondent No. 5-Renu Sood, in their individual and personal capacities, also executed a Continuing Guarantee Agreement to guarantee repayments of all the monies including the interest accrued therein with all costs, charges and expenses on demand made by the Bank of India. In addition thereto Som Nath Sood mortgaged his plot situated in New Delhi.

6. In terms of the aforesaid banking facilities made available by the Bank of India, the Singapore Company started selling goods to its customers in India and presented the Bills of Exchange to the Bank of India which wer