MUDIT ENTERTAINMENT INDUSTRIES P LTD Vs. BANARAS STATE BANK LTD
LAWS(ALL)-1999-9-52
HIGH COURT OF ALLAHABAD
Decided on September 23,1999

MUDIT ENTERTAINMENT INDUSTRIES (P.) LTD., ALLAHABAD Appellant
VERSUS
BANARAS STATE BANK LTD. Respondents

JUDGEMENT

Ashok A.Desai, J. - (1.) This bunch of petitions have questioned legislative competence of the Parliament to enact the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to "the Act, 1993") and legality of consequent transferring of recovery suits to the Tribunal constituted thereunder, as well Notification dated 7.4.1988 establishing the Tribunal at Jabalpur for Uttar Pradesh and Madhya Pradesh. These petitions, since raise common questions of facts, and law, are heard together and being disposed of by this common Judgment.
(2.) The Act of 1993 has established Tribunal for expeditious recovery of debts due to Banks and Financial Institutions. According to the learned counsel for petitioners, 42nd Constitutional Amendment of 1976 has now incorporated Part XIVA to the Constitution. This part contains Articles 323A and B. Article 323B empowers the Appropriate Legislature, by law to provide Tribunals for adjudication and trial, on the subjects enumerated therein. The Amendment of 1976, therefore, by necessary implication brings limitation on the plenary jurisdiction of the Parliament, to establish Tribunal on the subject, which have been, excluded under Article 323B. Submission of the learned counsel, therefore, is that the Parliament now cannot establish the Tribunal as it has been done under the impugned Act, by resorting to plenary jurisdiction under Article 245 of the Constitution. Consequently, the Parliament has traversed beyond the legislative competence, by establishing the Tribunal.
(3.) Clause 4 incorporates non obstante clause to Article 323B which reads thus : "Clause (4).--The provisions of this article shall have effect notwithstanding anything in any other provision of the Constitution or in any other law for the time being in force." Similar is the provision to Article 323A. Provisions under both the Articles have overriding effect on all the provisions of the Constitution including Article 245. Further submission, therefore, is it is no more open for the Parliament to establish any Tribunal, in exercise of plenary jurisdiction. To constitute a Tribunal on any other subject, the Parliament has to suitably amend Article 323B, by inserting the particular subject.;


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