2002 (10) TMI 689 - HC - Companies Law

Summary

Issues:
1. Quashing and setting aside an order passed by the Debts Recovery Tribunal.
2. Condonation of delay in filing an application for setting aside an ex parte decree.
3. Direction to pay a specific amount to the respondent-bank.

Issue 1: Quashing and setting aside an order passed by the Debts Recovery Tribunal:
The petitioner filed a petition to challenge an order passed by the Debts Recovery Tribunal and confirmed by the Debts Recovery Appellate Tribunal. The High Court considered the circumstances and found that the controversy was of a limited nature. The petitioner argued that he was unaware of the ex parte decree against him and promptly filed an application upon becoming aware of it. The Tribunal, however, rejected the application on technical grounds. The High Court, after analyzing the timeline of events and the petitioner's contentions, concluded that the delay in filing the application should be condoned in the interest of justice. Consequently, the High Court quashed the order passed by the Tribunals and directed the Debts Recovery Tribunal to decide the application on its merits.

Issue 2: Condonation of delay in filing an application for setting aside an ex parte decree:
The petitioner contended that he was not informed about the ex parte decree until a later date and promptly took steps to challenge it. The Appellate Tribunal rejected the application, citing the petitioner's awareness of the proceedings. The High Court, however, found that even if the petitioner was aware of the decree earlier than claimed, the delay in filing the application was not significant. Considering the circumstances and the petitioner's actions, the High Court decided to allow the petition by condoning the delay in filing the application for setting aside the ex parte decree.

Issue 3: Direction to pay a specific amount to the respondent-bank:
The High Court acknowledged the dispute regarding the amount due to the respondent-bank, which had increased over time. To ensure the ends of justice, the High Court directed the petitioner to pay a specific amount of Rs. 50,00,000.00 to the respondent-bank by a specified date. It was clarified that no further proceedings would be initiated by the respondent-bank until the payment deadline. Failure to comply would allow the respondent-bank to take appropriate legal actions. The High Court further directed that the deposited amount would accrue interest as per the bank's practice and would be kept in a separate account. The final decision on the amount would be made during the hearing of the application for setting aside the ex parte decree.

In conclusion, the High Court allowed the petition, quashed the previous orders, and directed the petitioner to pay a specific amount to the respondent-bank while providing detailed instructions regarding the payment and further proceedings.