Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Recovery of Debts due to Banks and Financial Institutions Act 1993 - s. 3/A |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Recovery of Debts due to Banks and Financial InstitutionsAct, 1993 - s. 3/A - Suit for recovery, filed by Bank against debtors- Recovery proceedings - Attachment of property followed by auction - Issuance of certificate of sale in favour of auctionpurchasers - Since, Certificate Debtors creating obstruction indelivery of possession of the property to auction purchasers, firstrespondent appointed as Court Commissioner - Direction to theBank to pay sen1ice charges to first respondent - Even though theBank had decided to discharge the Court Commissioner with effect from 08.05.2007 and the Bank also paid charges of first respondentupto 08.05.2007, and possession of the property was handed overto the auction purchasers, the Recovery Officer directed the Bankto continue to pay the charges to first respondent - Jn appeal,recovery officer directed the first respondent to take steps for recovery of its charges from auction purchasers from 08.05.07 -First respondent after pursuing the matter before DRT, DRAT andHigh Court, sought arbitration before Micro, Small and MediumEnterprises Development Facilitation (MSMEDF) Council - Awardpassed by MSMEDF Council directing the Bank to payRs.J,62,82,0791- with interest @ 24% to first respondent - Upheld by the District Judge and the High Court - On appeal, held: Orderof the Recovery Officer makes it clear that the continuation of theservices of the first respondent for safeguarding the auctionedproperty was only on behalf of auction purchasers and that onlythe auction purchasers were bound to pay the charges for securitysenescence to the first respondent - Bank was under no obligation topay the charges to the first respondent in any case after24.07.2008(order of DRT) - High Court was not right in sayingthat DRT had no jurisdiction to entertain the appeal and, thus, theorder would be non est - When the parties were vigorously pursuingthe matter before DRT, DRAT, having trappings of the civil court and also before the High Court, first respondent was not right inapproaching MSMEDF Council - Award passed by MSMEDFCouncil, as affirmed by District Court and also by High Court notsustainable - Micro, Small and Medium Enterprises DevelopmentAct, 2006. |
Judge | Hon'ble Ms. Justice R. Banumathi |
Neutral Citation | 2017 INSC 1176 |
Petitioner | Bank Of India |
Respondent | Yadav Consultancy Services (p) Ltd. And Anr. |
SCR | [2017] 12 S.C.R. 67 |
Judgement Date | 2017-12-05 |
Case Number | 5150 |
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