STATE BANK OF INDIA Vs. RANJAN CHEMICALS LTD

JUDGEMENT

(1.) Heard learned counsel for the parties. The State Bank of India, namely, the defendant-petitioner, is aggrieved by the order dated September 24, 2002, by which the learned Subordinate Judge 1, Patna, had rejected the petition of the defendant-bank for transferring the money suit, namely M. S. No. 168 of 2001, to the Debts Recovery Tribunal, Patna (hereinafter referred to as "the Tribunal" for the sake of brevity).

(2.) The said money suit was filed by the opposite parties on December 24, 2001, for a decree of Rs. 1,739.15 lakhs against the State Bank of India and its authorities, who were defendants, as damages along with interest, both pendente lite and future at the rate of 18 per cent. per annum, because the plaintiffs' highly viable industrial unit, as adjudged by the Industrial Investment Bank of India, had failed due to the inaction of the State Bank of India.

(3.) In the said money suit the defendant-petitioner appeared and filed a petition on July 17, 2002, claiming that the suit for damages filed by the plaintiff-opposite parties was not maintainable under section 19(8) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as "the Act" for the sake of brevity) and it was fit to be transferred to the Tribunal as a counter claim in O. A. Case No. 18 of 2002, which was filed by the State Bank of India under section 19 of the Act before the Tribunal for realisation of loan of Rs. 833.06 lakhs odd from the opposite parties.