ASSAM TEATHER INDUSTRY Vs. UNION OF INDIA

JUDGEMENT

(1.) These case raise the question of legality, validity, constitutionality of Recovery of Debts; Due to Banks and Financial Institution Act, 1993 (hereinafter called as 'Act') and other actions related to Debts Recovery Tribunal at Guwahati constituted under the Act (Tribunal hereinafter).

(2.) In all 350 cases were filed before Debts Recovery Tribunal at Guwahati and out of such proceedings 211 writ petitions were filed before this Court and stay was granted in those cases. There are some cases five in number arising out off cases filed by the Co-Operative Banks for recovery of its dues. The Debt Recovery Tribunal entertained them. The borrowers/ debtors have challenged this action on the ground that the Tribunal does not have the power to decide a suit filed by the Co-operative Bank, as the definition of Bank' in the relevant Act does not cover a Co-operative Bank. These cases are separated from this bunch and they have been heard separately and separate judgment has been pronounced. The cases filed before this Court can broadly be divided in these heads: i) cases filed by the borrowers/debtors against the action by the Banks for recovery of its dues either by filing original application before the Tribunal or cases sought to be tried having received by its on transfer from Civil Court under Section 31 of the Act. ii) Cases filed by the Finamcial Institutions like Assam Financial Corporation, National Insurance Co. etc. stating that their vested right as secured is being wiped out; iii) 41 cases filed at the recovery stage i.e. after a certificate was issued as against them by the Tribunal under the provisions of the Act.

(3.) It is pointed out by Mr. P.'N. Choudhury, learned CGSC that up to the end of July, 1999 cases were filed before the Tribunal for recovery of an amount of Rs. 369.14 crores and till today the amount involved in the different suits is Rs. 384 crores and out of it in the meantime from the date of establishment of the Tribunal till today an amount of Rs. 4.01 crore have been recovered from the borrowers/debtors. Order of stay was granted in the different cases i.e. 211 cases. Application was filed by the Union of India to vacate the stay. When the stay matter came up for consideration, the Court decided that instead of hearing the question of stay the main matter should be taken up for hearing. Learned counsel of both sides agreed to this and accordingly this matter has been heard on 9.8.99,10.8.99,11.8.99,12.8.99,13.8.99.