SANT NIRANKARI MANDAL Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) In this writ petition Sant Nirankari Mandal, a registered body, has raised a challenge to the order dated 5-3-2003 passed by the Debt Recovery Appellate Tribunal, Delhi in Appeal No. 110 of 2000 titled as Rajeev Associates Private Limited and others versus Punjab National Bank.

(2.) In order to substantiate this challenge to this order of the Appellate Tribunal, learned counsel appearing for the petitioner heavily relied upon the language of Section 21 of The Recovery of Debts Due to Banks and Financial Institutions Act, 1993, hereinafter referred to as the Act, to contend that while calculating the amount of 75% as an amount deposltable as a pre-requisite to the entertainment of the appeal by the Appellate Tribunal, the amount has to be calculated as on the date of entertainment of the appeal and/or passing of the order and not on filing of the appeal. However, before we proceed to discuss the effect of the statutory provisions on the merits of the contentions raised before us, it will be appropriate to make a reference to the bare minimum facts necessary for decision of this writ petition.

(3.) M/s. Rajeev Associates Private Limited have taken financial assistance from Punjab National Bank, hereinafter referred to as the Bank. Being In default, the Bank filed O.A. No. 107 of 1998 before the Debt Recovery Tribunal, Jaipur, against the company for recovery of Rs. 93.9S.226/- with Interest thereupon at the rate of 21.75% per annum with quarterly rests. The Debt Recovery Tribunal vide its order dated 29-4-1999 held that the Bank was entitled to re- cover Rs. 57,05,464/- with costs and future Interest at the rate of 18% per annum with quarterly rests. Against this order the company filed an appeal before the Appellate Tribunal, Mumbai. They also prayed for waiver of pre-deposlt in terms of Section 21 of the Act. An order was passed on 4-4-2000 by the Chairperson of Debts Recovery Appellate Tribunal, Mumbai, requiring the appellate company to deposit Rs. 7.50 lacs with the respondent bank in four weeks. Upon" such deposit, the bank was directed to release the title deed of the plot mortgaged with the bank so that the appellant could sell the same and deposit sale consideration thereof with the bank. The order of the Appellant Tribunal, Mumbai was challenged in this Court by the bank by filing CWP No. 4890 of 2000. The writ petition of the bank was allowed partly and the company was directed to deposit the balance amount within a period of 60 days from the date of the order. Before the Appellate Tribunal the company had sought time to deposit a sum of Rs. 49,55,464/- and keeping In view the deposit already made to the extent of Rs. 7.50 lacs, according to the appellate company, it was sufficient compliance of the provisions of Section 21 and as such the appeal has to be entertained In accordance with law.