HDFC Bank Limited vs Shree Syam Tech India (Private) Limited & Ors.

Matter is taken up in the revised list. None is present for the Respondents. Mr. Nalini Kanta Dash for the Appellant is present virtually.

Heard the Learned Counsel for Appellant and perused the record.

Instant appeal is preferred against order dated 03.3.2025 passed by DRT, Cuttack in O.A. 86 of 2015 whereby I.A. Diary No. 1536 of 2024, filed by the Appellant for return of the original documents, was dismissed.

Learned Counsel for Appellant would submit that the original documents were submitted at the time of filing of the O.A. 86 of 2015 under Section 19 of the Recovery of Debts And Bankruptcy Act, 1993. Application for return of the documents filed by the Appellant was dismissed on the ground that S.A. proceedings are pending. Mere pending of S.A. proceedings could not be a ground for retaining the documents by the Learned DRT.

Perusal of the impugned order would show that the O.A. proceedings are still pending. It appears that Securitisation Application was also filed by the Borrowers challenging the action of the Bank which is also pending. Learned Counsel for the Defendants before the Learned DRT also submitted that they have no objection if the documents are returned if the same are not required for registration.

Learned DRT dismissed the I.A. on the ground that S.A. proceedings are pending and if the documents are returned to the Bank for handing over the same to the Auction Purchaser it would affect the final disposal of the S.A. proceedings.

O.A. and S.A. proceedings are independent proceedings which can be continued simultaneously. When the original documents were filed by the Bank for the purpose of verification and if the verification is done, there is no reason for holding the documents by DRT. The Bank is required to prove its case on the basis of the evidence and if during evidence the documents are required, it is the responsibility of the Bank to produce the documents but the documents cannot be withheld by DRT merely on the ground of pendency of S.A. proceedings.

In such circumstances, the impugned order cannot be sustained and liable to be set aside.

Appeal is allowed. Impugned order dated 03.3.2025 is set aside. I.A. Diary No. 1536 of 2024 is allowed. Learned DRT is directed to return the documents filed by the Bank to the Bank.

File be consigned to Record room.

Copy of the Judgment/Final Order be uploaded in the Tribunal’s Website.

Order pronounced in open Court.