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Judgment
Markandey Katju, C.J.—These Civil Revision Petitions under Article 227 of the Constitution of India have been filed challenging the order
of the Debts Recovery Appellate Tribunal dated 15.10.2004.
We have heard learned counsel for the parties and carefully perused the impugned order and we find no merit in these petitions.
Admittedly the petitioners had taken a loan from the respondent Indian Bank and now the bank dues are about 26 crores of rupees. One time
settlement was offered to the petitioners, but they did not abide by that.
This Court in Tamil Nadu Industrial Investment Corporation Ltd. Vs. Millenium Business Solutions Pvt. Limited and Another, has held that in
such matters relating to recoveries of bank loans or loans by financial institutions the High Court cannot interfere under Articles 226 or 227 of the
Constitution of India. The High Court can only interfere if there is error of law apparent on the face of the record or violation of law. No such error
of law or violation of law has been shown in this case.
In the aforesaid Division Bench decision the relevant authorities have been referred to and we need not repeat the same. These are contractual
matters and as held in the aforesaid decision, and holding up recoveries of loans by unwarranted Court orders is causing incalculable harm to our
economy, since unless the loan is recovered a fresh loan cannot be granted to needy persons. A writ Court must exercise its jurisdiction on well
settled principles and not on mere sympathy or compassion. No doubt, there may be hardship to a party, but unless violation of law is shown the
Court cannot interfere.
For the reasons given above, both the revision petitions are dismissed. No costs. Consequently C.M.P. Nos.723 to 725 of 2005 are also
dismissed.