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Judgment
Anil Kumar Srivastava, Chairperson
This appeal is against order dated 10th March, 2022, passed by DRT-2, Kolkata whereby Learned Tribunal has directed that I.A. 307 of 2022 shall be adjudicated on merits and the Respondents would be at liberty to approach the Bank for amicable settlement. However, in the meantime, Learned DRT restrained the Bank from taking any coercive measures in view of the order, dated 1st February, 2022, passed by District Magistrate, Bankura, till the next date of hearing and fixed the matter for hearing of I.A. 307 of 2022 on 25th of March, 2022.
Learned Counsel for Appellant submits that Learned DRT has passed an order without following the procedures established by law. It is submitted that an interim direction was given by the Learned DRT without recording whether any prima facie case, balance of convenience and irreparable injury existed in favour of the Respondents. It is further submitted that Learned DRT had passed the interim order without recording any legality or irregularity in the order of the dated 1st February, 2022, passed by the District Magistrate, Bankura.
Learned Counsel has placed reliance on a judgment of the Hon’ble Apex Court in Civil Appeal No. 1984 of 2022 (arising out of SLP(C) 4080 of 2022) in the matter of Shyam Sel And Power Limited & Another -vs- Shyam Steel Industries Limited dated 14th March, 2022 wherein in paragraph 36, it has been held:
“In any event, though the Division Bench of the High Court observes that for deciding the question with regard to grant of interim injunction, it has to put itself in a position as if it was moved to pass an interim order in the suit, it even fails to take into consideration the principles which a court is required to take into consideration while deciding such an application. It is a settled principle tof law that while considering the question of grant of interim injunction, the courts are required to consider the three tests of prima facie case, balance of convenience and irreparable injury. Besides a stray observation that the respondent-plaintiff has made out a prima facie case, there is no discussion as to how a prima facie case was made out by the respondent-plaintiff. In ny case, insofar as the tests of balance of convenience and irreparable injury are concerned, there is not even mention with regard to these in the impugned judgment and order of the Division Bench of the High Court was totally unwarranted and uncalled for. We refrain ourselves from using any stronger words.”
Learned Counsel for Respondents submits that Learned DRT has not disposed of the I.A. but has only passed an interim protection; following the procedure established by law. It is further submitted that it was still open for the Bank to argue before the Learned DRT on the date so fixed.
Having gone through the impugned order, it is observed that Learned DRT has not recorded any finding regarding existence of any prima facie case in favour of the Respondents for which Learned DRT was inclined to pass an interim order giving interim protection to the Respondents. It was incumbent upon the Learned DRT to follow the basic principles of law while issuing an ad-interim order of injunction; recording balance of convenience and/or irregularities prima facie existing in favour of the Respondents which led the Learned DRT to pass the interim order. Learned DRT also failed to record and/or point out any illegality or irregularity in the impugned order of the District Magistrate, Bankura dated 1st February, 2022. The Hon’ble Apex Court, in the case of Shyam Sel And Power Limited & Another (supra) has specifically held that the Courts are bound to follow the procedure established by law.
In view of the discussion made hereinabove, I am of the view that interim protection, granted by Learned DRT, cannot be sustained and is liable to be set aside. Learned Counsel for Appellant, however, submits that the Appellant is not going to take any coercive steps till 25th April, 2022, the date fixed by the Learned DRT for hearing and disposal of the I.A. 307 of 2022.
ORDERED
The instant appeal, being Diary No. 44 of 2022, is allowed. Interim protection, granted by Learned DRT, vide order dated 10th March, 2022, is hereby set aside. However, it is expected that Learned DRT shall dispose of the I.A. on the date fixed, i.e. 25th of April, 2022. In view of the statement made by the Learned Counsel for Appellant, Appellant will not take any coercive steps till 25th of April, 2022.
No order as to costs.
Copy of the order be supplied to Appellant and the Respondents and a copy be also forwarded to the concerned DRT.
File be consigned to Record room.
Copy of the Judgment/Final Order be uploaded in the Tribunal’s Website.
Order pronounced by me in the open Court on this the 20th day of April, 2022.