DAISY PUTHRAN Vs. RECOVERY OFFICER

JUDGEMENT

(1.) THIS writ petition raises an important question of law regarding the powers of a Recovery Officer under the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act. The petitioner is a judgment debtor who is the defendant in O.A. No. 1351/1998 before the Debt Recovery Tribunal. Ultimately, final orders were passed quantifying the amount due from the petitioner. Petitioner's husband is also a guarantor who is the 2nd defendant in the O.A. The said order became final. Subsequently based on the recovery certificate issued by the Debt Recovery Tribunal, the decree holder, the 2nd respondent herein initiated steps for recovery of the amount due and filed an application Ext. P1 before the Recovery Officer. The prayer made in Ext. P1 is for an order of arrest and detention of the defendants/judgment debtors in the Civil prison and also confiscation and impounding of her passport and also for a direction that they should not leave India without seeking necessary permission from the Tribunal. The 1st respondent therein is the petitioner herein. Based on Ext. P1 application, Ext. P2 was issued. Ext. P2 notice was issued intimating the Regional Passport Officer, Kochi to impound the passport issued to the petitioner Smt. Daisy Puthran and to her husband, the other certificate debtor so as to prevent them from leaving India, pending a decision on the LA. By Ext. P3, the Debt Recovery Officer issued a notice to show cause to the petitioner herein and also to her husband to show cause why warrant of arrest should not be issued. The said notice is issued under Rule 73 of the 2nd Schedule of the Income Tax Act, 1961 read with Section 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as 'the Act'). Further, the Recovery Officer issued summons which is produced in the case Ext. P4 along with I.A. 1273/2004. As per Ext. P4 notice of summons issued to the petitioner, the petitioner was summoned to appear before the Recovery Officer on 27.1.2004 for recording her statement on oath and for filing an affidavit indicating the particulars of her assets. This summons is issued under Section 28(4A) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 read with Rule 83 of the Second Schedule to the Income Tax Act, 1961. The petitioner seeks the following reliefs:

(2.) IT is not disputed that the amounts are still due from the petitioner as per the decree. The challenge is, however, made to Exts. P2 and P3 on the ground that the steps taken by the Recovery Officer/Ist respondent is contrary to Articles 13 and 14 of the Constitution of India including the steps initiated to impound the passport. Hence, Exts. P2 and P3 are also challenged for violation of the principles of natural justice.

(3.) THE learned Counsel appearing on behalf of the petitioner also contended before me that the petitioner being a woman, she cannot be arrested even as per the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and Exts. P2 and P3 are contrary to law and liable to be set aside.