MAHARAJI EDUCATIONAL TRUST Vs. PUNJAB AND SIND BANK

JUDGEMENT

(1.) The petitioner-Trust had taken a loan from the respondent-Punjab & Sind Bank, which could not be repaid within time. Initially negotiations for one time settlement were going on between the petitioners and the Bank, which could not fructify and hence the Bank filed an Original Application under Section 19 of the Recovery of Dues due to Banks and Financial Institutions Act, 1993. The application of the Bank was allowed by the Debts Recovery Tribunal vide its order dated 25.8.2005 and recovery for a sum of over Rs. 26 crores was directed against the petitioners. Challenging the said order, the petitioners filed an appeal before the Debts Recovery Appellate Tribunal, alongwith an application under Section 21 of the Act for waiver of the deposit to be made with the appeal. By an order dated 10.1.2006 the Appellate Tribunal partly allowed the application and directed that the appeal of the petitioners be entertained on their depositing a sum of Rs. 5 crores within two months, out of which the sum of Rs. 1 crore, which had already been deposited by the petitioners, was to be adjusted, meaning thereby, the petitioners were thus required to deposit a further sum of Rs. 4 crores. Since the petitioners could not deposit the entire amount within the time granted by the Appellate Tribunal, after depositing a sum of Rs. 50 lacs on 2.3.2006, the petitioners filed an application for extending the time for making the full deposit as per order dated 10.1.2006. Vide order dated 6.3.2006, the Appellate Tribunal extended the time upto 15"' April, 2006. After such order had been passed, the petitioners deposited a further sum of Rs. 35 lacs and again approached the Appellate Tribunal for extension of time upto 31st May, 2006 on various grounds stated in the application. Such application of the petitioners has been rejected by the Appellate Tribunal vide its order dated 17.4.2006. Aggrieved by the said order, the petitioner has approached this Court.

(2.) Although several prayers have been made in the writ petition but the only prayer pressed by the learned Counsel for the petitioners is for extension of time for making such deposit.

(3.) I have heard Sri R.N. Singh, learned Senior Counsel, assisted by Sri C.B. Yadav and Sri Amit Saxena on behalf of the petitioners and Sri Pramod Jain, learned Counsel appearing for the contesting respondent No. 1-Punjab & Sind Bank. Sri P.K. Singhal has accepted notice for respondent No. 4. In view of the nature of the order which is being passed and keeping in view that no useful purpose would be served by requiring the respondents to file counter affidavit, this writ petition is being disposed of at this stage.