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2002 (8) TMI 567 - HC - Companies Law

Issues:
Challenge to order transferring execution application to Debts Recovery Tribunal based on legal fiction under section 44A(1) of CPC and jurisdiction of the Tribunal.

Analysis:

Issue 1: Legal Fiction under Section 44A(1) of CPC
- Appellant challenged transfer of execution application to Debts Recovery Tribunal, citing section 44A(1) of CPC.
- Appellant argued that legal fiction under section 44A(1) only allows execution in district court's original jurisdiction, not in Tribunal.
- Cited Privy Council and Supreme Court judgments on legal fictions and consequences.
- Court held that Tribunal's exclusive jurisdiction under RDB Act extends to foreign decrees, not unjustifiably.
- Rejected appellant's argument of extending legal fiction beyond its purpose.

Issue 2: Distinction between Sections 38, 39 of CPC and Section 44A
- Appellant claimed distinction between execution of domestic decrees (Sec 38, 39) and foreign decrees (Sec 44A).
- Noted that Sec 44A allows defences under Sec 13, permitting going behind decree.
- Cited Supreme Court judgments emphasizing Sec 44A as part of domestic law for foreign judgments.
- Highlighted differences in defences available under Sec 44A compared to Sec 38, 39.
- Court clarified that Tribunal can exercise powers of a court under CPC, including defences under Sec 13.

Issue 3: Jurisdiction of Debts Recovery Tribunal
- Appellant raised concern over jurisdiction shift to Tribunal affecting rights to raise objections.
- Court referred to Supreme Court ruling on Tribunal's powers to exercise CPC provisions.
- Emphasized Tribunal's jurisdiction to go beyond CPC, ensuring defences under Sec 13 available.
- Dismissed appellant's argument on potential loss of rights due to Tribunal's discretion.

Conclusion:
- Court upheld Single Judge's orders on Chamber Summonses, dismissing both appeals.
- Found no errors in transferring execution application to Debts Recovery Tribunal based on legal fiction and Tribunal's jurisdiction under RDB Act.
- Rejected appellant's arguments on extending legal fiction, distinctions between CPC sections, and impact on rights before the Tribunal.
- Upheld validity of provisions under RDB Act, emphasizing Tribunal's authority to exercise court powers under CPC.

 

 

 

 

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