SPECIAL MACHINES Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) The petitioners before us availed of loan facilities originally from the Hindustan Commercial Bank Limited (which got amalgamated into the respondent-Bank) from 1979 onwards. At some stage, the petitioners started defaulting in meeting their financial commitments and consequently the respondent-bank filed a civil suit in the Court of the learned Civil Judge, Karnal, for recovery of Rs. 1,36,13,919.23 alongwith future interest with effect from 10.12.1988 on 14.12.1988 under Order 34 of the Code of Civil Procedure, 1908 (hereinafter referred to as 'the CPC').

(2.) The defence by way of written statement was filed by the petitioners (original defendants in the suit) only on 12.12.1991. Alongwith their defence incorporated in the written statement, the petitioners filed a counter claim of Rs. 52,50,88,849/-. However, after the enactment of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 (hereinafter referred to as 'RDDBFI Act'), the papers of the suit were transferred to the Debt Recovery Tribunal, Jaipur and thereafter subsequently in March 2000 to the DRT at Chandigarh. The respondent-bank also initiated proceedings against petitioners under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the 'SARFAESI Act').

(3.) It appears that during the course of final arguments, an issue arose on account of the fact that on the counter claim effectively, no court fees has been paid (learned counsel for the petitioners states that Rs. 10/- had been paid as court fees which was deficient). The petitioners filed an application praying for decision on certain applications filed earlier as well as the decision on the counter claim. The DRT on 4.12.2009 opined that the counter claim in the written statement had been filed before the civil court without payment of court fees and thus, in the absence of the court fees, no claim in the shape of counter claim could be entertained at that stage.