BANK OF MAHARASHTRA Vs. KONKAN CHEMICALS PRIVATE LIMITED

JUDGEMENT

(1.) THE applicant seeks for Judges order to the effect that the offer dated 5-6-1999 made by M/s. Umang Enterprises for purchase of the suit hypothecated plant machinery stocks and all other movables for Rs. 27,78,600/- be accepted and direct the Receiver to hand over to said M/s. Umang Enterprises all the hypothecated securities lying at the factory of the 1st defendant etc.

(2.) THE matter arises under execution of a decree obtained by the applicant. No one appears for the respondent. During the course of hearing of the application, a question arose as to whether, by virtue of section 31 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 hereinafter called "the Act" be transferred to the Debt Recovery Tribunal as the amount involved is exceeding Rs. 10 lakhs. As per section 18 of the said Act, this Court has no jurisdiction to deal with those matters if the claim involves more than Rs. 10 lacs in respect of the claim of Bank. In this case the claimant is Bank of Maharashtra. So before considering the request of the applicant for issuing the Judges Order, I have to answer this question.

(3.) THE learned Counsel for the applicant Mr. Samdani contended that in execution of a decree even if the decree is more than Rs. 10 lacs, it will not come under the provisions of section 31 of the Act and is not required to be transferred to the Debt Recovery Tribunal. He submits that "other proceeding" appearing in section 31 will not take in the Execution Proceedings. In order to substantiate his argument he brought to my notice various provisions of the Act and tried to demonstrate in the light of section 44-A of the Code of Civil Procedure that it is not the intention of the Parliament. He contended that if this execution petition is included in the "other proceedings" under section 31, how the Debt Recovery Tribunal execute a decree coming under section 44-A. This circumstances exclude Execution Proceedings by implication in the period of "the other proceedings". According to me this is not a correct approach in interpreting a statute. I shall extract below the relevant provisions of the Act referred to in his submission. Section 2 (b) : application means an application made to a Tribunal under section 19. "