AI Structured Summary
Not yet generated for this judgment
Judgment
S. Ravi Kumar, Chairperson
This Appeal is preferred under Section 20 of the Recovery of Debts Due to Bank and Financial Institution Act, 1993 against order dated 27.7.2017 in Transfer Application No.605/2017 (OA 673/2012 filed in DRT-I Bangalore) passed by DRT-II, Bangalore. Brief facts leading to this appeal are as follows:
Appellant herein filed OA for recovery of Rs.39,67,761/- from defendants 1 and 2 (R1 & R2 herein). D3 & D4 (R3 and R5 herein), which are also banks are impleaded since same property is also mortgaged to them subsequent to mortgage in favour appellant bank. Tribunal below through impugned order, instead of deciding who has got first charge over mortgaged schedule property referred the matter to a High Power Committee constituted as per Circular bearing No.D.N.29(9)/2014-Judi dated 7.4.2014 and directed the appellant bank and other two banks viz., D3 and D4 to approach the said Committee with a copy of the order and come back to the Tribunal for appropriate order after resolving their disputes. Aggrieved by the same, present appeal is preferred.
Heard both sides.
Advocate for appellant bank submitted that from the pleadings it is clear that mortgage in favour of D3 and D4 banks is subsequent to the mortgage created in favour of appellant bank. Unfortunately, without deciding this issue, Tribunal below referred the matter to High Power Committee. Now, both sides submitted that High Power Committee is no more in existence as on today and they have also not approached the High Power Committee. But the fact that dispute as to who got first charge over schedule property remained unresolved.
Considering the same, instead of going into merits and demerits of the appeal, I am of the view, this is a fit case to remit back the matter to Tribunal below to decide the OA afresh, giving opportunity to appellant and defendants 3 and 4 i.e., respondents 3 & 5 herein, since main defendants viz., borrowers remained ex parte. As OA is of the year 2012, I deem it appropriate to direct the Tribunal below to decide the OA as expeditiously as possible, preferably within 3 months from the date of receipt of the order.
In the result, Appeal RA 63/2019 is ordered accordingly. There will be no order as to costs.
All pending IAs, if any, stand closed.