PUNJAB NATIONAL BANK Vs. PUSHPA BUILDERS LIMITED

JUDGEMENT

(1.) The Recovery of Debts Due to Banks and FinancialInstitution Act, 1993 which came into force on 24/06/1993 provides for establishment of Debts Recovery Tribunal to entertain and decide applications from thebanks and financial institutions for recovery of debts due to such banks-andfinancial institutions. Every such application is to be accompanied with a feesubject to a maximum of Rs. 1,50,000.00. The Act further provides that on and fromthe appointed day, the jurisdiction of any Court or other authority in relations tothe matters specified above shall stand ousted. Admittedly, such a Tribunal hasbeen established in New Delhi with effect from 5/07/1994. However, despite allthis,the Punjab National Bank has filed this suit for the recovery of Rs. 1,59,34,131-61(Rupees one crore fifty nine lacs thirty four thousand one hundred thirty one andpaise sixty only) with pendente-lite and future interest and for sale of mortgagedproperty and has paid thereon a Court fee of Rs. 1,50,000.00 although admittedly asper the Court Fees Act the advalorem Court fees works out to Rs. 1,57,528 / - leavingthus a deficiency of Rs. 7,528/.

(2.) Why this suit has been instituted in the Court and not before the TribunalThe reason is an order of a Division Bench of 5/07/1994 passed by this Court inC.W.P. 3050 of 1994 staying the "operation of this Act in its applicability to theUnion Territory of Delhi". This obviously clears the hurdle with regard to jurisdiction of this Court. However, the question with regard to payment of requisite Courtfees remains.

(3.) As already noticed above, the maximum fee prescribed under the Act is Rs.1,50,000.00. Had there been no order of stay regarding the operation of the Act, theBank would have been obliged to pay only that much amount as fee on theapplication. It is now required to pay Rs. 7,528.00 more as Court fees under theCourt Fees Act. The Bank says that since it has been compelled, on account of thestay order, to institute the suit in this Court and not before the Tribunal, and as incase of vacation of the stay order or dismissal of the writ petition, the suit will goto the Tribunal, it should be exempted from paying Court fees over and above themaximum prescribed under the Act or in any case, the payment of the requisiteCourt fees should be deferred at least till the matter pending before the DivisionBench is finally disposed of. It is this prayer which has led to this order.