ISIBARS LIMITED Vs. COMMERZBANK AG

JUDGEMENT

(1.) Respondent 1 is a banking corporation incorporated under the laws of Germany having its Head Office at Kaizerplatz, Frankfurt, Germany. The petitioner-company had taken certain credit facilities from respondent 1. The petitioners did not clear the outstanding dues and, therefore, respondent bank filed Original Application No. 153 of 2001 for recovery of the said amount in the Debts Recovery Tribunal II, Mumbai (for short, "the DRT").

(2.) It is the petitioner's case that after they filed their filed a miscellaneous application and called upon respondent 1 to produce the banking licence. Respondent 1 in its reply admitted that it had surrendered its banking licence. The petitioners, therefore, filed a miscellaneous application seeking dismissal of the original application on the ground that respondent 1 was no longer a bank as defined under the Recovery of Debts Due to Banks and Financial Institution Act, 1993 (for short, "the RDDB Act").

(3.) Respondent 1 opposed the said application. It contended that it was a bank at the time of filing of the original application and, therefore, the DRT had jurisdiction to entertain and decide the application. The Presiding Officer by his order dated 13/3/2003 dismissed the said application. Being aggrieved by the said order, the petitioners preferred an appeal before the Debts Recovery Appellate Tribunal (for short, "the DRAT"). By order dated 30/5/2003, the DRAT dismissed the said appeal. Hence, this writ petition.