JAIKISAN JAYNARAYAN BHAIYYA Vs. UNITED WESTERN BANK LTD

JUDGEMENT

(1.) BY an order dated 20th January, 2004 it was directed that the present petition shall be decided finally at the admission stage. I had called for the report of the Office for confirming that the present petition pertains to the jurisdiction of the Single Bench. Accordingly, the Office has submitted report. The petition was finally heard and the Counsel for the parties argued at length. The petition is taken up today for dictation of the judgment.

(2.) THIS petition under Article 227 of the Constitution of India has been preferred by the petitioner for challenging the order passed by the learned presiding Officer of the Debts Recovery Tribunal, Nagpur (hereinafter referred to as the Tribunal) and the judgment and order passed by the learned Chairperson of the Debts Recovery Appellate Tribunal, Mumbai (hereinafter referred to as the Appellate Tribunal ).

(3.) THE respondent bank filed an Original Application No. 413 of 2001 against m/s. S. N. K. Overseas Limited and six others including the present petitioner for recovery of a sum of Rs. 16,57,09,000. 88/- with future interest@ Rs. 25% p. a. The present petitioner has been impleaded as defendant No. 4 in the said original application which was filed under section 19 of the Recovery of Debts due to Banks and Financial Institution Act, 1993 (hereinafter referred to as the said Act of 1993 ). The petitioner and the defendant No. 7 filed a Joint written Statement. In the said written statement the petitioner contended that there was no cause of action for filing the original application against the petitioner and defendant No. 7. It was contended that the petitioner and defendant No. 7 being the Directors of the defendant No. 1 company were not personally liable for the acts of the company. It was also contended that the petitioners were not the guarantors for the loan transactions.