STATE BANK OF INDIA Vs. VIJAY KR TAYAL

JUDGEMENT

(1.) . By this common order, I would be deciding the question of transfer of suits instituted by Banks and Financial Institutions to the Debt Recovery Tribunal, constituted under "The Recovery of Debts due to Banks and Financial Institutions Act, 1993" hereinafter referred to as the Act.

(2.) . By virtue of Section 17 of the Act, the Debt Recovery Tribunal has been conferred the jurisdiction to try and entertain an application for Recovery of Debts due to Banks and Financial Institutions. An appellate Tribunal has also been constituted to entertain appeals from orders of the Debt Recovery Tribunal. The jurisdiction of the Civil Courts has been excluded in relation to matters falling within jurisdiction of the Tribunal except under Articles 226 and 227 of the Constitution of India. Reference may usefully bemade to Section 31, which deals with transfer of pending cases. Section 31 of the Act is as under:-

(3.) . Suits instituted by Banks and Financial Institutions of value exceeding the sum of Rs.10 lacs are liable to be transferred to the Debt Recovery Tribunal from the appointed day. This has given rise to several questions regarding transfer of suits, wherein cross suits have been instituted or counter claims are filed. Additionally, there are cases where set off or adjustment is claimed. These situations may broadly be classified as under: