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2002 (3) TMI 817 - HC - Companies Law

Issues:
1. Quashing of proceedings before the Debt Recovery Tribunal
2. Rejection of application under rule 10 of the Rules
3. Acceptance of affidavit as evidence under rule 12(6) of the Rules
4. Prematurity of the writ petition
5. Appeal remedy under the Act
6. Justification of the Tribunal's orders

Analysis:
1. The petitioners sought to quash the proceedings before the Debt Recovery Tribunal (Tribunal) in O.A. No. 1012 of 1995. The suit was transferred to the Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. The petitioners filed applications under rule 10 of the Rules, which were dismissed by the Tribunal. The High Court reviewed the facts and ruled on the validity of the Tribunal's actions.

2. The Tribunal rejected the petitioners' application under rule 10 of the Rules, which led to the filing of a writ petition. The High Court determined the prematurity of the writ petition as the Tribunal had not passed any order. Subsequently, the Tribunal rejected another application, prompting the petitioners to approach the High Court seeking relief.

3. The crucial issue revolved around the acceptance of affidavit evidence under rule 12(6) of the Rules. The petitioners argued that the Tribunal erred in accepting the affidavit when they desired to cross-examine the witness. Citing relevant case law and legal provisions, the High Court emphasized that the Tribunal should not have accepted the evidence via affidavit in such circumstances.

4. The High Court addressed the prematurity of the writ petition and the subsequent rejection of the application by the Tribunal. It highlighted the procedural errors and lack of justification for dismissing the petitioners' requests, emphasizing the need for proper application of rules and reasoned decisions by the Tribunal.

5. Discussion ensued regarding the availability of an appeal remedy under the Act. The respondents argued against entertaining the writ petition due to this alternative remedy. The High Court referred to relevant judgments, emphasizing that the existence of an appeal remedy does not preclude the court from exercising discretionary powers under articles 226 and 227 of the Constitution.

6. The High Court scrutinized the Tribunal's orders and found them lacking in legal reasoning and proper justification. It criticized the Tribunal for dismissing applications without adequate explanation or reference to relevant provisions. The High Court ultimately set aside the impugned orders, directing the Tribunal to reject the affidavit evidence and order the production of witnesses for examination.

In conclusion, the High Court's detailed analysis and rulings in this judgment underscored the importance of procedural adherence, proper application of rules, and reasoned decision-making by the Tribunal in matters related to evidence, applications, and judicial orders.

 

 

 

 

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