PUNJAB NATIONAL BANK Vs. SERAIKELLA GLASS WORKS LTD
DEBTS RECOVERY APPELLATE TRIBUNAL
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(1.) THIS pertains to the petition of applicant Bank dated 17.10.2003 whereby a preliminary objection was raised to dismiss the counter claim and to proceed with the original application of Bank.
(2.) Heard the parties. I have also perused the relevant case papers.
The sole contention of the applicant Bank, as raised in the aforesaid petition is that under Section 19(8) of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 a counter claim can only be filed before the defendant has delivered his defence or before the time limited for defence has expired. The Bank has stated that the defendant Nos. 1 and 2 have filed their written statement on 11.8.2000 and therefore no counter claim under Section 19(8) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 can be filed after filing of written statement i.e. after 11.8.2000.
(3.) THIS Tribunal has already observed in Central Bank of India v. Jumbo Engineering Pvt. Ltd., I (2003) BC 7=2003(1) Bank CLR 240 (DRT Ranchi) that, "Sub-section 8 of Section 19 does not provide any period of limitation for filing counter claim but simply provides a condition that the cause of action must accrue before the defendant has delivered his defence or before the time limited for delivery of defence has expired. The interpretation of Section 19(8) therefore provides that any cause of action which may arise after the filing of written statement by the defendants or after the expire of the date for filing the defence will not come within the scope of Section 19(8)".;
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