Harish Chandra (India) Ltd. And Ors. vs Corporation Bank And Ors.

Ranjit Singh, J

This application is filed under Section 17(A) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 by M/s. Harish Chandra (India) Ltd. & Ors. for transfer of OA No. 08 of 2014 from DRT-II, Delhi to DRT-I, Delhi. Respondent Corporation Bank along with six other Banks like Union Bank of India, Andhra Bank, Indian Bank, Oriental Bank of Commerce, Karnataka Bank Ltd. and Bank of India etc. have claimed dues from the appellant. These Banks had formed a consortium and had granted various facilities to the applicant Company. It is alleged that the Banks did not disburse the loan amount in true spirit. The Banks have now issued notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and had taken symbolic possession of various properties as well. Aggrieved against the measures initiated by the Banks, the applicant Company has filed SA No. 80 of 2013 before DRT-I. Delhi. This SA was filed as nine properties against which the applicant sought relief were within the jurisdiction of DRT-I, Delhi. This SA is stated to be complete and is at the stage of final arguments.

It is alleged that another SA No. 93 had been filed in respect of the same property in question by various individuals and HUFs claiming to be the owners of the said properties. This S.A. is also pending before the DRT-I, Delhi for adjudication. Certain tenants claiming them selves to be lawful tenants of the properties have filed SA No. 90 of 2013 before DRT-I, Chandigarh. The Banks, however, filed OA No. 08 of 2014 before DRT-II, Delhi where the same issues are raised and same properties are subject-matter in the OA It is stated that DRT-II, Delhi has no jurisdiction as none of the defendants reside and work for gain or carry on business within the jurisdiction of DRT-II, Delhi. It is accordingly prayed that this OA be transferred to DRT-I, Delhi where other SAs are pending.

Notice in this Miscellaneous Application was issued. None had appeared for respondent Nos. 11, 12 and 13 as they were not served. Thereafter, notices were issued to them for April 16, 2014. The Counsel appearing for respondent No. 10 i.e. M/s. Paramount Plastic Industries made a statement before this Tribunal that it has no objection for transfer of the OA to DRT-I, Delhi. The Counsel for respondent No. 9 M/s. Gables India Pvt. Ltd. also pleaded no objection for this transfer. The case was adjourned to 4th June, 2014 for effecting service on respondent Nos. 11, 12 and 13.

The Counsel for the applicant also filed affidavit of service showing that service had been effected on respondent Nos. 11, 12 and 13. Counsel for the parties then pointed out that in fact 9/10 SAs were pending before different Tribunals.

Mr. Chaudhari, Counsel for the applicant, pleads that all the SAs should be tried by one and the same Tribunal so as to avoid possibility of conflicting judgments. Case was adjourned for today for furnishing the details of the SAs which are pending before the different Tribunals. Today, Counsel for the parties have placed before me the details of nine SAs which are pending before the different Tribunals. Three SAs bearing No. 80 of 2013 filed by Harish Chandra (I) Ltd., No. 90 of 2013 filed by Harish Chandra & Sons HUF and No. 93 of 2013 filed by Ajay Gupta & Sons (HUF) are pending before DRT-I, Delhi. SA No. 333 of 2013 filed by Ashok Gupta & Sons (HUF) is pending before DRT-III, Delhi. OA No. 08 of 2014 filed by the Corporation Bank & Ors. (except Bank of India) is pending before DRT-II, Delhi. SA No. 174 of 2013 filed by M/s. Gables India Private Limited is pending before DRT-I, Chandigarh and so also SA No. 199 of 2013 filed by M/s. Mahindra Holidays & Resorts India Limited. One SA No. 87 of 2013 filed by M/s. Paramount Plastic Industries is pending before DRT, Jaipur where another SA No. 16 of 2014 filed by M/s. Radiant Complast is also pending.

Though the Counsel appearing for respondent No. 10 M/s. Paramount Plastic Industries Ltd. had expressed no objection for transfer of the OA to DRT-I, Delhi, but has object to transfer of the SA No. 87 of 2013 which M/s. Paramount Plastic Industries Ltd. has filed before DRT, Jaipur The Counsel would contend that the property is located at Jaipur where the applicant is also stationed and it is will be difficult for the applicant to contest the litigation at Delhi. I find this plea is raised for the purpose of raising the plea. If M/s. Paramount Plastic Industries Ltd. has no difficulty in attending to the proceedings which are pending at Delhi where it is impleaded as respondent, obviously it would not face any difficulty if this SA filed at Jaipur is transferred to Delhi. This plea appears to have been made without much justification. Similarly, the Counsel for M/s. Gables India Private Limited respondent No. 9 has prayed for time to file reply to the application. I think that prayer is made only to delay the proceedings and nothing else. Prayer accordingly is rejected.

As already noticed, it is appropriate if all the proceedings concerning this case are tried by one and the same Tribunal. This will be in the interest of justice and would also avoid passing of any contradictory or conflicting orders. One Tribunal would also be able to appreciate the entire controversy in correct perspective. Considering the submissions made before me, I deem it appropriate to transfer all these SAs to be tried along with OA filed before DRT-II, Delhi. The directions are accordingly issued for transfer of SANo. 80 of 2013 titled as M/s. Harish Chandra (India) Ltd. & Ors. v. Corporation Bank and Ors., (pending before DRT-I, Delhi), SA No. 90 of 2013 titled as Harish Chandra & Sons (HUF) & Ors. v. Corporation Bank & Ors. (pending before DRT-I, Delhi), SA No. 93 of 2013 titled as Ajay Gupta & Sons (HUF) and Ors. v. Corporation Bank and Ors., (pending before DRT-I, Delhi), SA No. 333 of 2013 titled as Shri Ashok Gupta & Sons (HUF) & Ors. v. Corporation Bank & Ors., (pending before DRT-III, Delhi), SA No. 174 of 2013 titled as M/s. Gables India (P) Ltd. v. Corporation Bank, (pending before DRT-I, Chandigarh), SA No. 199 of 2013 titled as Mahindra Holidays and Resorts India Ltd. v. Corporation Bank and Ors., (pending before DRT-I, Chandigarh), SA No. 87 of 2013 titled as M/s. Paramount Plastic Industries v. Corporation Bank &Ors., (pending before DRT, Jaipur) and SA No. 16 of 2014 titled as Radiant Complast Pvt. Ltd. v. Corporation Bank & Ors., (pending before DRT, Jaipur) shall stand transferred to DRT-II, Delhi.

It is left open for the DRT-II, Delhi to decide all the SAs together or separately as is considered convenient. If any of the cases is mature for decision, it may not be kept pending for completion of pleadings in the remaining cases. The Tribunal below would be at liberty to decide any case which is ripe for decision all this left to the discretion of the Tribunal below. Copy of this order be sent to DRT-I, Delhi. DRT-II, Delhi, DRT-III, Delhi, DRT-I, Chandigarh and DRT, Jaipur for compliance. Record of the SAs, which are to be transferred, shall be transmitted immediately to the DRT-II, Delhi by the respective Tribunals. SA No. 80 of 2013 is now listed for July 3, 2014. The other SAs are listed for the different dates in the month of July, 2014 except SA No. 33 of 2013 which is listed on 7th August, 2014. Efforts should be made to immediately transfer the record of these cases to DRT-II, Delhi before the dates fixed in these cases. The present application is disposed of in the above terms.