Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Debt Laws: Recovery of Debts Due to Banks and Financial Institutions Act 1993 C (as amended): Section 19-Applications to the Tribunal-Pecuniary jurisdiction |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Others |
Headnote | Debt Laws: Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended): Section 19-Applications to the Tribunal-Pecuniary jurisdiction-Act vested jurisdiction in Tribunals in respect of recovery suit exceeding Rs. 10 lakhs- In respect of recovery of suits for less than Rs. 10 lakhs, jurisdiction vested in ordinary civil courts and High Courts-Validity of-Held: Such pecuniary jurisdiction is no ground for holding the Act as invalid. Section 22-Tribunal and Appellate Tribunal-Procedure and powers-Effect-Held: Establishment of a Banking Tribunal does not erode the independence of judiciary and justice would not be denied to the defendants-Such tribunals are effective parts of the justice delivery system like courts of law-However, decision of the Appellate Tribunal is not final as the same is subject to judicial review by the High Court. Section 25 and 28-Validity of-Held: Recovery Officer has to attach and sell the immovable property in order to recover the debts-He has the power to appoint a Receiver for protection and preservation of such immovable property-Hence, Ss. 25 and 28 are not arbitrary, unreasonable or without any guidelines. Section 31-Transfer of pending cases-From civil court to Tribunal-Validity of-Held: Jurisdiction of civil courts is barred by S.18-Therefore, it is logical that matters pending in civil court should stand transferred to the Tribunal. Debt Recovery Tribunal (Procedure) Rule, 1993 (as amended): Rule 12(6)-Particulars fact or facts-Proving of-By Affidavit-Validity of -Held: No transaction with the Bank would be oral and without proper documentation-Hence, the Tribunal should be able to decide cases on the basis of documents and affidavits. Constitution of India, 1950: Lists II and III of Seventh Schedule-Matters not covered by-Power of Parliament to enact law relating thereto-Held: is absolute. Articles 323-A and 323-B-Setting up of tribunals-Scope and ambit of-Held: These Articles do not prohibit the legislature from establishing tribunals not covered by them as long as there is legislative competence under an appropriate entry in the Seventh Schedule. Entry 45 List I Seventh Schedule-Banking-Tribunal-Competence of Parliament to legislate in relation thereto-Held: The term "Banking" would mean legislation regarding all aspects of Banking including ancillary or subsidiary matters relating to Banking-Setting up of an adjudicatory body like the Banking Tribunal clearly falls under Entry 45 List I. Banking Tribunal-Power of Parliament to enact a law relating thereto--Held: Is not taken away though the matter is not covered by Arts. 323-A or 323-B-The power conferred by Art. 246 (1)can be exercised notwithstanding the existence of Arts. 323-A or 323-B. Words and Phrases: "Banking "-Meaning of-In the context of Entry 45 list I of the Seventh Schedule to the Constitution of India, 1950. The respondents tiled a writ petition before the High Court challenging the constitutional validity of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended) on the ground that the Act is unreasonable and is violative of Article 14 of the Constitution and that the same was beyond the legislative competence of the Parliament. The High Court held that the Act was unconstitutional as it eroded the independence of the judiciary and was irrational, discriminatory, unreasonable, arbitrary and was hit by Article 14 of the Constitution. The High Court also held that the Act lowered the status of the High Court inasmuch as the Tribunal, which was presided over by an officer who did not have the status of a High Court Judge would be deciding the suits for recovery of money exceeding Rs. 10 lakhs. Hence this appeal. |
Judge | Honble Mr. Justice B.N. Kirpal |
Neutral Citation | 2002 INSC 140 |
Petitioner | Union Of India And Anr. |
Respondent | Delhi High Court Bar Association And Ors. |
SCR | [2002] 2 S.C.R. 450 |
Judgement Date | 2002-03-14 |
Case Number | 4679 |
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