2017 (10) TMI 1064 - SC - Indian Laws

Deemed status of proceedings before the Recovery officer - Section 5 of the Limitation Act, 1963 invoked to condone the prescribed period of 30 days, under Section 30(1) of the Recovery of Debts and Bankruptcy Act, 1993 preferring an appeal before the Tribunal, against an order of the Recovery officer - Held that - The RDB Act is a special law. The proceedings are before a statutory Tribunal. The scheme of the Act manifestly provides that the Legislature has provided for application of the Limitation Act to original proceedings before the Tribunal under Section 19 only. The appellate tribunal has been conferred the power to condone delay beyond 45 days under Section 20(3) of the Act. The proceedings before the Recovery officer are not before a Tribunal. Section 24 is limited in its application to proceedings before the Tribunal originating under Section 19 only. The exclusion of any provision for extension of time by the Tribunal in preferring an appeal under Section 30 of the Act makes it manifest that the legislative intent for exclusion was express. The application of Section 5 of the Limitation Act by resort to Section 29(2) of the Limitation Act, 1963 therefore does not arise. The prescribed period of 30 days under Section 30(1) of the RDB Act for preferring an appeal against the order of the Recovery officer therefore cannot be condoned by application of Section 5 of the Limitation Act.

Summary

Issues:
- Interpretation of Section 5 of the Limitation Act, 1963 in relation to Section 30(1) of the Recovery of Debts and Bankruptcy Act, 1993.
- Whether Section 5 of the Limitation Act can be invoked to condone the prescribed period of 30 days for preferring an appeal before the Tribunal against an order of the Recovery officer.

Analysis:
1. Interpretation of Section 5 of the Limitation Act: The central question in this case revolved around the applicability of Section 5 of the Limitation Act, 1963 to proceedings under Section 30(1) of the Recovery of Debts and Bankruptcy Act, 1993. The argument put forth by the appellants contended that Section 5 of the Limitation Act should apply to proceedings under Section 30(1) of the RDB Act, as implied exclusion cannot be readily inferred considering the nature of rights and interests involved. However, the respondents argued that the RDB Act is a complete code by itself, and any extension of the prescribed period of 30 days under Section 30(1) is expressly excluded by the legislative intent.

2. Scope of the Recovery of Debts and Bankruptcy Act: The Recovery of Debts and Bankruptcy Act, 1993 was enacted to expedite the recovery of dues to banks and financial institutions through summary proceedings before a statutory Tribunal. The Act provides a comprehensive procedure for recovery proceedings, enforcement methods, and the right to appeal. It was emphasized that the RDB Act is a special law and a complete code by itself concerning the expeditious recovery of dues.

3. Application of Limitation Act to Tribunal Proceedings: The judgment clarified that the proceedings under the RDB Act before a statutory Tribunal cannot be equated with proceedings before a court. The Tribunal does not possess inherent powers to condone delay unless expressly conferred by the statute creating it. The ruling cited the case of Sakuru vs. Tanaji to emphasize that the Limitation Act applies only to proceedings in 'courts' and not to appeals before quasi-judicial Tribunals unless expressly provided for.

4. Legislative Intent and Exclusion: The legislative intent behind the Recovery of Debts and Bankruptcy Act was analyzed to determine the applicability of the Limitation Act. It was concluded that the provisions of the Limitation Act are applicable only to original applications under Section 19 of the RDB Act and not to appeals under Section 30(1). The absence of any provision for extension of time for preferring an appeal under Section 30 indicates an express exclusion by the legislature.

5. Precedent Consideration: The judgment also addressed a previous decision in A.R. Venugopal @ R.Venugopal vs. Jotheeswaran & ors., where the delay in preferring an appeal under Section 30(1) beyond the prescribed 30 days was considered condonable. However, it was noted that the entire statutory scheme was not under consideration in that case, and the current appeals lacked merit based on the detailed analysis provided.

In conclusion, the Supreme Court dismissed the appeals, affirming that the prescribed period of 30 days under Section 30(1) of the Recovery of Debts and Bankruptcy Act cannot be condoned by invoking Section 5 of the Limitation Act due to the legislative intent and the specific provisions of the RDB Act.