2001 (8) TMI 1240 - SC - Companies Law

Suit filed by the appellant for recovery of money from the principal debtor as well as the guarantors - Held that - Appeal allowed. The order which was passed by the Tribunal directing sale of mortgaged property was appealable under section 20 of the Recovery of Debts Due to Banks and Financial Institutions Act 1993. The High Court ought not to have exercised its jurisdiction under article 227 in view of the provision for alternative remedy contained in the Act. We do not propose to go into the correctness of the decision of the High Court and whether the order passed by the Tribunal was correct or not has to be decided before an appropriate forum.

Summary

The Supreme Court allowed the appeal, setting aside the Calcutta High Court's order. The High Court should not have entertained the petition under article 227 as the order was appealable under section 20 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. The Act provides a special procedure for debt recovery, and alternative remedies should be pursued before an appropriate forum.