U.P. Financial Corporation vs Small Industries Development ...
2015 Latest Caselaw 1209 ALL

HIGH COURT OF JUDICATURE AT ALLAHABAD
 
 

?Court No. - 9
 
Case :- WRIT - C No. - 38108 of 2015
 
Petitioner :- U.P. Financial Corporation
 
Respondent :- Small Industries Development Bank Of India (Sidbi) & 2 Othr.
 
Counsel for Petitioner :- Ranjit Saxena
 
Counsel for Respondent :- K.M. Asthana
 

 
Hon'ble Arun Tandon,J.

Hon'ble Ashwani Kumar Mishra,J.

Supplementary affidavit filed today is taken on record.

Heard Sri Ranjit Saxena, learned counsel for the petitioner and perused the record.

Small Industrial Development Bank of India (hereinafter referred to as SIDBI)  filed Original Application No. 243 of 2013 (Small Industrial Development Bank of India Vs. UPFC) under  Section 19 of The Recvoery of Debts Due to Banks and Financial Institution Act, 1993 (hereinafter referred to as Act, 1993) before the court of DRT Allahabad. The prayer made is that the Tribunal may issue a recovery certificate for the amount mentioned at page-77 of the paper book.

The Financial Corporation of India, a respondent in the said proceeding and against whom the said relief has been prayed for, filed a written statement and  raised preliminary issues qua the Tribunal having no jurisdiction to entertain the application under Section 19 of the Act, 1993. Since this issue was not being decided as a preliminary issue, the Financial Corporation filed Appeal No. 66 of 2014 before the Recovery Appellate Tribunal, New Delhi In-charge, DRT,  Allahabad. The appeal has been dismissed after observing that there is no need for any direction to DRT to decide the issue as a preliminary issue. Against this order, the present petition has been filed.

We are of the considered opinion that there is no need for this Court to interfere in the matter at this stage. The Tribunal shall necessarily deal with the objection qua the maintainability of the proceedings under Section 19 of the Act, 1993 as instituted by the SIDBI while deciding the application finally.

The writ petition disposed of accordingly.

Order Date :- 13.7.2015/Ashish Pd.