HIGH COURT OF KARNATAKA
ALOK ARADHE,ANANT RAMANATH HEGDE
M/S. BANGALORE MANAGEMENT ACADEMY PVT LTD – Appellant
Versus
THE IDBI BANK LTD – Respondent
WP/52798/2018
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 18TH DAY OF NOVEMBER 2021
PRESENT
THE HON’BLE MR. JUSTICE ALOK ARADHE
AND
THE HON’BLE MR. JUSTICE ANANT RAMANATH HEGDE
W.P. NO.52798 OF 2018 (GM-DRT)
BETWEEN:
1.
M/S. BANGALORE MANAGEMENT ACADEMY PVT. LTD.
NO.17, ASHIRWAD TOWERS
MAHADEVAPURA RING ROAD
MARATHAHALLI, BANGALORE
REPRESENTED BY ITS POWER OF ATTORNEY HOLDER
SRI. Y. SREENIVASAN
S/O YELLAPPA
AGED 35 YEARS
RESIDING AT NO.246, GROUND FLOOR
7TH CROSS, ROSE GARDEN
NEELASANDRA, BANGALORE-560047.
2.
ROBINSON ROBERT DONISON
S/O DONISON
CHRISTIAN AGED 45 YEARS
MANAGING DIRECTOR
M/S. BANGALORE MANAGEMENT ACADEMY PVT. LTD.,
NO.17, ASHIRWAD TOWERS
MAHADEVAPURA RING ROAD
MARATHAHALLY, BANGALORE-560037
NOW IN LONDON DULY
REPRESENTED BY HIS POWER OF ATTORNEY
SRI. Y. SREENIVASAN
S/O YELLAPPA
AGED 35YEARS
RESIDING AT NO.246, GROUND FLOOR
7TH CROSS, ROSE GARDEN
2
NEELASANDRA
BANGALORE-560047.
... PETITIONERS
(BY MR. KRISHNASWAMY, ADV.,)
AND:
THE IDBI BANK LTD.
NO.102, SHATHI COMFORTS TOWERS
K.H.ROAD, BANGALORE-560027
REPRESENTED BY ITS CHIEF MANAGER.
... RESPONDENT
(BY MR. T.P. MUTHANNA, ADV.,)
- - -
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 & 227
OF
THE
CONSITUTION
OF
INDIA,
PRAYING
TO
QUASH
ANNEXURE-F DTD:31.1.2013 PASSED BY DRT, BANGALORE IN
O.A.NO.377/2012. ANNEXURE-H DTD9.10.2017 PASSED BY THE
DRT-II BANGALORE IN I.A.NO.1171/2017 [CONDONATION OF
DELAY] IN SR 7269/2017. QUASH ANNEXURE-A DTD:15.10.2018
PASSED IN M.A.NO.27/2018 BY THE DRT, CHENNAI AND RESTORE
O.A.NO.377/2012 ON THE FILE ON DRT, BANGALORE FOR FRESH
CONSIDERATION & ETC.
THIS WRIT PETITION COMING ON FOR HEARING, THIS DAY,
ALOK ARADHE J., MADE THE FOLLOWING:
3
ORDER
In this writ petition, the petitioner inter alia has
assailed the validity of the order dated 31.03.2015 passed by
the Debt Recovery Tribunal as well as order dated
09.10.2017 passed by the Debt Recovery Tribunal and the
order dated 15.10.2018 passed by the Debt Recovery
Appellate Tribunal, Chennai (hereinafter referred to as 'the
tribunal' for short). In order to appreciate the petitioner's
challenge to the impugned order, relevant facts need
mention, which are stated hereinafter.
2.
The petitioners are borrowers who have availed
of financial assistance from the respondent-Bank to the
extent of Rs.2,39,66,000/- in the year 2009. The petitioners
did not repay the loan amount. Thereafter, the Bank initiated
a proceeding for recovery of the amount under the Recovery
of Debts Due to Banks Act, 1993 (hereinafter referred to as
'the Act' for short). The petitioners were served with the
summons, however, no appearance was made before the
Debt Recovery Tribunal. The Debt Recovery Tribunal by an
order dated 18.06.2012 proceeded ex-parte against the
4
petitioners and thereafter, by an order dated 31.01.2013
allowed the original application preferred by the bank.
3. The respondent, thereafter, filed an application on
29.06.2017 before the Debt Recovery Tribunal to set aside
the ex-parte order passed on 31.01.2013. An application
under Section 5 of the Limitation Act was also filed for
condonation of delay of 1583 days in filing the application for
setting aside the ex-parte order. The aforesaid application
was rejected by an order dated 09.10.2017 passed by the
Debt Recovery Tribunal. The petitioners, thereupon, filed an
appeal before the Tribunal. The aforesaid appeal has been
dismissed by order dated 15.10.2018. In the aforesaid
factual background, this petition has been filed.
4. Learned counsel for the petitioners submitted that
the petitioners were not served in the proceeding before the
Debt Recovery Tribunal. It is also urged that since, the
property is situate at Chennai, therefore, Debt Recovery
Tribunal, Bangalore had no jurisdiction to entertain the claim.
It is also pointed out that the order dated 31.01.2013 is
cryptic and suffers from the vice of non application