STATE BANK OF INDIA Vs. TAMIL NADU STEELS LTD.
DEBTS RECOVERY APPELLATE TRIBUNAL
State Bank Of India And Ors.
Tamil Nadu Steels Ltd. and Ors.
Click here to view full judgement.
K. Gnanaprakasam, J. -
(1.) THIS appeal is directed as against the Order dated 30.9.2005 in OA -34/2001 passed by the DRT -I at Chennai.
(2.) NOTICE to the respondents were taken and respondents 1 and 2 were called absent and set ex parte on 17.3.2006. Respondent No. 3 is the Official Liquidator.
I have heard the learned Advocate for the appellants and also perused the appeal papers.
The learned Advocate for the appellants has raised two points to be decided in this appeal:
(1) The Order passed by the DRT that the appellants should file their claim before the Official Liquidator after getting the Recovery Certificate is not proper;
(2) The rate of interest awarded by the Tribunal is very low.
Point No. 1:
(3.) M /s. Tamil Nadu Steels Ltd., which is the 1st respondent in the OA, went into liquidation and Official Liquidator was appointed. But, however, the appellants who are the consortium of Banks, have brought the action in OA -34/2001 for recovery of the amounts due to them by the 1st respondent. The DRT decreed the OA. Relying upon the decision rendered by the Supreme Court in Allahabad Bank v. Canara Bank and Anr. I (2000) BC 627 (SC) : III (2000) CLT 129 (SC) : 2000 (3) Supreme 205, DRT had observed that the leave of the Company Court is not mandatory for determining the debt under the Act or at the time of execution of Recovery Certificate issued, because the Debts Recovery Tribunal has been conferred, an exclusive jurisdiction to determine the debt due to the Bank and financial institutions and also to recover the same due under the Recovery Certificate. After having observed so, the DRT was of the view that by reading the Companies Act and also the RDDB & FI Act, 1993 harmoniously, after issuance of the Recovery Certificate, the Bank should file their claim before the Office of the Official Liquidator as the Official Liquidator had already taken charge of the assets and effects of the Dl Company, and the same is under challenge in this appeal.;
Copyright © Regent Computronics Pvt.Ltd.