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Judgment
The respondent filed O.A. bearing No. 137/2019 (new number T.A. No. 731/2022) titled as Canara Bank v. M/s Techno Tech & others which is stated to be pending before DRT-I, Delhi.
During the trial an application bearing I.A. No. 344/2021 was filed with the prayer to direct the respondent to return the O.A. and file in the proper court having competent jurisdiction. The appellants are the defendants in the O.A. (TA).
The appellants being the defendants in I.A. bearing No. 344/2021 stated that the appellant no.2 is the proprietor of appellant no.1. The respondent alleged that the account of the appellants was declared NPA on 26.02.2018 and thereafter interest accrued on the loan amount was debited in the account of the appellants.
It is also stated that the appellants have claimed the interest on the contractual rate @ 9.15% per annum but the respondent has charged more than 18% on the crystallised capital. It is stated that if the interest is charged @ 9.15% per annum on the capital from the time of NPA then the outstanding dues against the appellants are less than Rs.10.00 lacs and as such the liability of the appellants is less than pecuniary jurisdiction of DRT. Accordingly, it is prayed that the DRT be directed to return back and to be filed before the court of competent jurisdiction.
It is also appearing that the respondent has filed the reply wherein alleged that the application was filed to delay the adjudication by the Tribunal and on the date of filing of application under Section-19 of the Recovery of Debts Due to Banks and Financial Institution Act, 1993, the recovery of Rs. 10,04,804/- is due and payable on 31.10.2018. The respondent also filed statement of account and it was pleaded on behalf of respondent that the OA (TA) is maintainable.
The DRT-I, Delhi vide impugned order dated 23.03.2023 has dismissed the application. The relevant portion of the impugned order is as under:
In the present matter, the defendants by way of filling the present application has raised the objection that this Tribunal has no jurisdiction to entertain the present original application on the ground that the applicant bank has filed the present original application for the recovery of Rs.10,04,804/-, whereas this Tribunal has no jurisdiction to entertain the original application below the suit amount of Rs.20.00 lakhs. However, since, the Ministry of Finance vide notification dated 01.08.2019 has notified that the OA having suit value between Rs.10 lakhs to Rs.20 lakhs which have been filed before the DRT between 26.9.2018 and 30.6.2019 may continue in DRTs, whereas the present OA was filed on 17.11.2018, therefore, the present OA is maintainable before this Tribunal. Accordingly, present application stands dismissed, however, the issue of interest and penal interest etc. cannot be decided at this stage and the same shall be decided by this Tribunal at the time of final disposal of this matter after filling the evidences by the parties.
The appellant no.2 appeared in person and argued that the respondent has calculated interest at higher only to bring OA into pecuniary jurisdiction of DRT and as such the DRT is not having pecuniary jurisdiction to entertain the present OA (TA). The appellant no.2 during the course of arguments also referred the content of the application bearing I.A. No. 344/2021. It was argued that the present O.A. be returned back with the direction to file before court of competent jurisdiction.
The Counsel for respondent has defended the impugned order dated 23.03.2023 and argued that the present appeal is filed only to delay the proceedings and trial of O.A. bearing T.A. No. 731/2022 and prayed that the present appeal be dismissed with imposing of cost.
The perusal of order reflects that the DRT-I, Delhi relied upon the notification dated 01.08.2019 issued by the Ministry of Finance whereby it was notified that the OA having the value between Rs. 10.00 lacs to Rs. 20.00 lacs which have been filed before DRT between 26.09.2018 to 30.06.2019 may continue with the DRT. It was also observed that the present OA (TA) was filed on 17.11.2018 as such the OA (TA) is maintainable.
The pleas and contentions as raised by the appellants in the application bearing I.A. No. 344/2021 cannot be decided by way of interim application and requires appropriate appreciation of documents stated to have been placed on record by the respondent. The present OA (TA) cannot be directed to be returned merely on the basis of allegation as stated in the application bearing I.A. No. 344/2021.
It is pertinent to mention that OA was filed in the year 2019 and since then the trial of OA (TA) is delayed. The present application bearing I.A. No. 344/2021 is misconceived and has been filed only to delay the trial of OA bearing T.A. No. 731/2022.
After considering fall facts, the present appeal is dismissed. The DRT-I, Delhi keeping in view that the O.A. (TA) is pending since 2019 is directed to dispose of the O.A. bearing T.A. No. 731/2022 on or before 31.03.2027. However, it is made clear that all the pleas and contentions as raised by the appellants in the application bearing I.A. No. 344/2021 shall remain open and can be taken during the trial of O.A. bearing T.A. No. 731/2022.
Copy of this order be sent to DRT-I, Delhi for information and compliance.