COSMOS FLIGHT LTD Vs. BANK OF RAJASTHAN LTD

JUDGEMENT

(1.) This writ petition is directed against the order passed by the Debts Recovery Tribunal on 15.02.2007 whereby the interim order dated 15.10.2004, which was subsequently confirmed on 13.01.2005, was vacated.

(2.) The impugned order has been passed because an application had been moved by the respondent /bank for vacation of the said interim order. The application had been moved by the respondent/ bank in view of the recent decision of the Supreme Court in the case of M/s. Transcore v. Union of India and Another: 2006 (12) Scale 585, wherein the Supreme Court held that proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 as well as under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 could be initiated and continued simultaneously. In the present case the bank had already initiated proceedings under the 1993 Act and during the pendency of these proceedings before the Debts Recovery Tribunal, notice under Section 13(2) of the 2002 Act was issued. The petitioner herein had approached the Debts Recovery Tribunal for staying the operation of the said notice. And at that point of time, the position in law was unclear as to whether proceedings under both the acts could be taken by the banks simultaneously. It is in these circumstances that the interim orders were passed by the Debts Recovery Tribunal.

(3.) The Supreme Court having clarified the position in the case of Transcore (supra) that both the proceedings could continue simultaneously, the bank moved an application for vacation of the stay granted by the Debts Recovery Tribunal. One of the submissions made by the learned counsel for the petitioner was that the petitioner was not heard while the Debts Recovery Tribunal passed the impugned order.