ANAMIKA Vs. DEBT RECOVERY APPELLATE TRIBUNAL

JUDGEMENT

(1.) FOR expeditious disposal of cases regarding recovery of money due to the financial institutions and the banks, Parliament of India passed an Act called the Recovery of Debts Due to Banks and financial Institutions Act, 1993 (for short, "the Act" ). Under the Act, Debt Recovery Tribunals (for short, "the Tribunal") were created at various levels to try the suits filed by the banks and financial institutions in which the claim was more than rupees ten lakhs. By operation of law, various cases which were pending" in different civil courts in the country were ordered to be transferred to the Tribunals.

(2.) THE second respondent-Corporation Bank (for short, "the bank"), at Bangalore filed a suit in o. S. No. 4037 of 1989 for recovery of a sum of Rs. 15,76,654 against the appellants in the City civil Court, Bangalore. Soon after the coming into force of the Act and keeping in view the mandate contained therein, the proceedings in the suit were transferred to the Tribunal which was registered as O. A. No. 1170 of 1995. The Tribunal, on final adjudication passed an order on january 31, 2000, determining the amount payable by the appellants to the respondent-bank.

(3.) AGAINST the order passed by the Tribunal, the appellants filed an appeal before the Appellate tribunal constituted under the Act. Under Section 21 of the Act, the judgment-debtor is required to deposit 75 per cent. of the amount due to the respondent-bank for the appeal to be registered. The appellant filed an appeal under Section 21 of the Act without depositing 75 per cent. of the amount due to the bank. The Appellate Tribunal permitted the appellant to deposit the amount on or before October 19, 2000, which was later on extended to December 4, 2000.