2000 (5) TMI 1016 - SC - Companies Law

Debt Recovery Tribunal - Transfer of pending cases - Held that - Appeal dismissed. Learned single judge has chosen to give a grossly unreasonable and perverse interpretation to the provisions of the Act and Letters Patent of the Calcutta High Court in holding that the order passed by the Registrar in transferring the matter to the Tribunal is a nullity because the earlier order passed under section 24 was on the judicial side. The view expressed by the learned single judge is contrary to the purposes of the Act as explained by this Court in Allahabad Bank s case (2000 (4) TMI 757 - SUPREME COURT OF INDIA). The learned Division Bench of the High Court was wholly justified in setting aside the order of the learned single judge.

Summary

The Supreme Court dismissed the appeal in a case where a suit was transferred to the High Court but should have been automatically transferred to the Debt Recovery Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. The High Court has no jurisdiction in such matters. The appeal was dismissed with costs of Rs. 5,000 to be deposited in the Supreme Court Legal Services Committee.