Appeal No. R-176 of 2012. Case: New Tech Pipes Ltd. and Ors. Vs State Bank of India and Anr.. Allahabad DRAT DRAT (Allahabad Debt Recovery Appellate Tribunals)
| Case Number | Appeal No. R-176 of 2012 |
| Counsel | For Appellant: Mr. Nagendra Nath, Advocate and For Respondents: None |
| Judges | R.K. Gupta, J. (Chairperson) |
| Issue | Recovery Of Debts Due To Banks And Financial Institutions Act, 1993 - Sections 19, 20; Special Economic Zones Act, 2005 - Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 1(3), 15, 2, 20, 21, 22, 23, 23(1), 24, 25, 26, 27, 28, 29, 30, 3, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 42, 43, 44, 45, 46, 47, 48, 49, 5... |
| Citation | III (2013) BC 18, 2013 119 RD 194 |
| Judgement Date | November 20, 2012 |
| Court | Allahabad DRAT DRAT (Allahabad Debt Recovery Appellate Tribunals) |
Judgment:
R.K. Gupta, J. (Chairperson)
1. This is an appeal preferred under Section 20 of the RDDBFI Act, 1993 challenging the interim order passed by the Tribunal on 8th October, 2012. By this order, the Tribunal has rejected the preliminary objection with regard to the maintainability of the Original Application preferred by the Bank under Section 19 of the RDDBFI Act, 1993. It was objected on behalf of the appellants being the defendants that the Central Government has promulgated the Special Economic Zones Act, 2005 and the provisions as contained under Sections 5, 23, 24, 51 and 58 of the Act ousts the jurisdiction of the Debts Recovery Tribunal and on this basis, it is contended that since the Industry of the appellants is situated within the Special Economic Zone area, therefore, it is covered under the said Act, hence the provision of the RDDBFI Act, 1993 cannot be invoked for the recovery of its debts by the Bank against the appellants.
2. In this reference, the Tribunal relied upon the two letters, which are Annexure Nos. A-28 and A-29 dated 18th January, 2012 and 8th February, 2012 issued by the Assistant Development Commissioner, Indore Special Economic Zone. He has observed that the recovery of debt is a matter which pertains purely between both the units and the Bank which may taken action under statutory provisions to recover its dues because of commercial borrowing between the Bank and the appellant.
3. With reference to the said objection, this is to be seen that the Special Economic Zone Act, 2005 is enacted to provide for the establishment, development and management of the Special Economic Zones for the promotion of exports and for matters connected therewith or incidental thereto. By virtue of Section 1(3) of the Act, 2005, the same shall come into force on such date as the Central Government may be notification in Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. Accordingly, Sections 1 to 19, 25 to 30 and 42 to 58 were brought into force on 1st February, 2006 vide Notification No. S.O. 195(E), dated 10th February, 2006, Sections 31 to 41 were brought into force on 1st October, 2008 vide Notification No. S.O. 2320(E) dated 1st October, 2008 and so far as the Sections 20, 21 and 22 are concerned, these sections were brought into force on 13th January, 2010 vide...
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