I.A. 133 of 2004 in O.A. 51 of 2003. Case: State Bank of India Vs Paramount Sinters and Ors.. Nagpur Debt Recovery Tribunals
|Case Number:||I.A. 133 of 2004 in O.A. 51 of 2003|
|Party Name:||State Bank of India Vs Paramount Sinters and Ors.|
|Counsel:||For Appellant: Mulchandani, Adv. and For Respondents: Karamchandani, Adv. for Defendant Nos. 1, 3 and 4, A.M. Deo, Adv. for Defendant No. 5, Khanzode, Adv. for Defendant No. 6, S.S. Joshi, Adv. for Proposed D-8, Mardikar, Adv. for Proposed D-9, Pillai, Adv. for Proposed D-10 and D-11 and Naik, Adv. for Proposed D-12|
|Judges:||K.J. Paratwar, Presiding Officer|
|Issue:||Recovery of Debts Due to Banks and Financial Institutions Act, 1993 - Section 19 and 19(1); Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Section 13(7)|
|Citation:||I (2005) BC 219|
|Judgement Date:||January 06, 2005|
|Court:||Nagpur Debt Recovery Tribunals|
K.J. Paratwar, Presiding Officer
Heard the learned Counsel.
5th defendant has taken out this application for dismissal of the O.A. on the ground that the applicant has taken recourse to provisions to Securitisation Act.
The learned defence Counsel has drawn my attention to proviso to Section 19(1) of RDDB & FI Act and Section 13(7) of the Securitisation Act for urging that applicant Bank has to make election and should proceed either with O.A. or under Securitisation Act.
The learned Counsel for the Bank has submitted that recourse to provision to Securitisation Act was taken before latest amendment came into operation w.e.f. 11.11.2004. That is why what is contained in proviso to Section 19(1) would not apply to this case. I find considerable force in this submission.
The proviso is reproduced below for appreciating the legal position:
"Provided that the Bank or financial institution may, with the permission of the Debts Recovery Tribunal, on an application made by it, withdraw the application, whether made before or after the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Ordinance, 2004 for the purpose of taking action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of...
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