1997 (10) TMI 323 - HC - Companies Law

Summary

Issues: Proper scrutiny of the Original Application before registration, defendant's right to object to lack of scrutiny, power of the Tribunal to regulate its own procedure, application of principles of natural justice, defendant's right to raise issues of defective application.

Analysis:
The Civil Revision Petition sought to quash the proceedings in an Original Application before the Debt Recovery Tribunal, filed by a bank for the recovery of a debt from the petitioner as a guarantor. The petitioner contended that there was improper scrutiny of the application, as it was not typed in double space as required by the rules, and translated copies of documents were not furnished. The petitioner argued that the lack of proper scrutiny led to unnecessary issuance of notice to defend the case. The Court noted that the petitioner, as a defendant, had the right to object to the lack of proper scrutiny only if it affected their ability to defend the matter. The Tribunal, under its powers, framed rules for scrutiny of applications before registration, and if the defendant was handicapped in their defense due to a defect in the application, they could raise the issue. The Court emphasized that the Tribunal had the power to regulate its procedure based on principles of natural justice, allowing it to condone defects in applications to ensure fairness between parties. The petitioner's complaint about translated copies of documents was addressed by the Tribunal's assurance that they would be furnished at trial, indicating the application of natural justice principles. Ultimately, the Court found no reason to entertain the petition and dismissed it.

This judgment delves into the importance of proper scrutiny of applications before registration, the defendant's right to object to defects affecting their defense, and the Tribunal's power to regulate its procedure based on principles of natural justice. It highlights the balance between upholding procedural rules and ensuring fairness in legal proceedings. The Court's analysis underscores the Tribunal's authority to address defects in applications to facilitate a just resolution, emphasizing the overarching goal of achieving justice between parties.