I.A. Nos. 66, 67 of 2006 and Appeal No. 56 of 2016. Case: J.R. International and Ors. Vs Punjab and Sind Bank. Delhi DRAT DRAT (Delhi Debt Recovery Appellate Tribunals)
| Case Number | I.A. Nos. 66, 67 of 2006 and Appeal No. 56 of 2016 |
| Counsel | For Appellant: Fanish Kumar Jain, Advocate |
| Judges | Ranjit Singh, J. (Chairperson) |
| Issue | Recovery Of Debts Due To Banks And Financial Institutions Act, 1993 - Section 31 |
| Judgement Date | February 01, 2016 |
| Court | Delhi DRAT DRAT (Delhi Debt Recovery Appellate Tribunals) |
Judgment:
Ranjit Singh, J. (Chairperson)
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On 17.9.2012, the Hon'ble High Court vide its order of even date had transferred the execution petition pending before it to the Debts Recovery Tribunal (DRT) at Delhi and the parties were directed to appear before the DRT accordingly. This is a case where Punjab & Sind Bank had filed a suit for recovery of Rs. 3,64,32,060.04 before the High Court. The case was settled and, thereafter, on a joint application moved by the parties the said suit was decreed in favour of the Bank. Based on the compromise, the final mortgage decree was also passed in favour of the decree-holder Bank. The borrower had agreed to pay the decretal amount in monthly installments of Rs. 50 lacs each.
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When the judgment-debtors failed to deposit installments, the Bank filed an execution petition before the High Court and the execution proceedings accordingly commenced. Judgment-debtors appeared and participated in the execution proceedings. All the mortgaged properties were sold and the amount so realized by the decree-holder Bank was adjusted in the accounts. Judgment-debtors never raised any objection to the jurisdiction of the High Court to deal with the execution or challenged the decree passed on the basis of compromise. The High Court, however, disposed of the execution petition on 18.12.2007 and gave liberty to the decree-holder to revive the same as and when the Bank was able to locate properties of the judgment-debtors.
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The Bank in this background filed an application for revival of the execution proceedings before the High Court as well as for transfer of the execution proceedings to DRT, Delhi in terms of Section 31 of the RDDBFI Act. Judgment-debtors filed their objection to the transfer of this execution petition, but the High Court, vide its order dated 17.9.2012, has transferred the execution petition to DRT.
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The appellant judgment-debtors filed an objection before the DRT on the ground that the order passed by the High Court was a nullity as the High Court had no jurisdiction to pass order in view of the provisions contained in the RDDBFI Act. The Tribunal has dismissed this objection by observing that if judgment-debtors had any grievance in regard to the orders passed by the High Court, they ought to have challenged the same in appropriate Forum. Holding that the Tribunal has jurisdiction to deal with execution as present one is a case of transfer of execution proceedings. The Tribunal has revived...
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