M/S Shashi Bhushan Cold Storage ... vs Housing And Urban Development ...
2021 Latest Caselaw 1502 Patna

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                     Letters Patent Appeal No.1123 of 2019
                                        In
                  Civil Writ Jurisdiction Case No.21123 of 2018
     ======================================================

M/s Shashi Bhushan Cold Storage Pvt. Ltd. through the Managing Director having its registered office at Vill. + P.O.- Berui, Via- Baniapur, District- Saran.

... ... Appellant/s Versus

1. Housing and Urban Development Corporation Ltd. Regional Office at 2nd Floor, Block B/2, Mauryalok Complex, Dak Bungalow Road, Patna, Bihar through the Authorised Officer.

2. The Regional Chief Housing and Urban Development Corporation Ltd., Regional Office at 2nd Floor, Block B/2, Mauryalok Complex, Dak Bungalow Road, Patna.

... ... Respondent/s ====================================================== Appearance :

For the Appellant/s : Mr.Raushan, Advocate

For the Respondent/s : Mr. Sanjay Singh Thakur, Advocate ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE S. KUMAR ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE)

Date : 17-03-2021

Present appeal has been preferred against the order

and judgment dated 30.08.2019 passed by the learned single

Judge in CWJC No. 21123 of 2018, titled as M/s Shashi

Bhushan Cold Storage Pvt. Ltd through its Managing Director

Vs. Housing and Urban Development Corporation Ltd. & Anr.

It is not in dispute that the instant appellant, Patna High Court L.P.A No.1123 of 2019 dt.17-03-2021

respondent in the original application, had not approached any

one of the authorities under the provisions of the Recovery of

Debts Due to Banks and Financial Institutions Act, 1993

(hereinafter referred to as the 'Act') or preferred a petition

before this Court under Article 226/227 of the Constitution of

India, seeking disbursement of the amount of loan sanctioned in

its favour.

In fact, it was the petitioner (respondent herein),

namely, Housing and Urban Development Corporation Ltd.,

who, alleging breach of the terms of the loan agreement, had

initiated proceedings under the provisions of the Act for

recovery of the amount disbursed.

Surprisingly, while dismissing such action, the Debt

Recovery Tribunal (hereinafter referred to as the 'Tribunal'),

constituted under the Act, issued directions against the

petitioner, directing release of the remaining amount of the loan,

sanctioned in favour of the appellant herein. It did not even

consider the factum of alleged breach of the terms of loan

agreement.

If the appellant had not chosen to initiate appropriate

action by way of an independent petition or filing a counter

claim, then there was no occasion for the Tribunal to have Patna High Court L.P.A No.1123 of 2019 dt.17-03-2021

issued such a direction. Reliance on Section 19(25) of the Act is

totally misconceived and untenable in law. The Tribunal is

authorised and entitled to issue directions for preventing abuse

of its process and to secure the ends of justice. In exercise of

such a statutory power it cannot not assume the power of a writ

court under Article 226/227 of the Constitution of India.

The exercise of statutory power, needless to add, has

to be only under the framework of the Statute and for achieving

the aims and objects and fulfilling the role, conferred upon the

Tribunal and not any further. Unmindful of the fact that the

borrower had not initiated any action or filed a counter claim at

best it could had dismissed the action but not passed orders in

favour of the respondent herein.

It is a matter of record that the appellant herein had

committed breach of the loan agreement warranting the

petitioner/respondent herein to not only stop disbursement of

the balance installments of the sanctioned amount but initiate

proceedings for recovery of the amount already disbursed.

Learned counsel for the respondent clarifies that his

client has already challenged the order passed by the Tribunal

before the appellate authority constituted under the Statute.

As such, we find no infirmity with the impugned Patna High Court L.P.A No.1123 of 2019 dt.17-03-2021

judgment passed by the learned single Judge. The present appeal

is devoid of any merit. It is, accordingly, dismissed.

(Sanjay Karol, CJ)

( S. Kumar, J)

Sujit/Amrendra

AFR/NAFR CAV DATE Uploading Date 22.03.2021 Transmission Date