NEW TECH PIPES LTD. Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THIS is an appeal preferred under Section 20 of the RDDBFI Act, 1993 challenging the interim order passed by the Tribunal on 8th October, 2012. By this order, the Tribunal has rejected the preliminary objection with regard to the maintainability of the Original Application preferred by the Bank under Section 19 of the RDDBFI Act, 1993. It was objected on behalf of the appellants being the defendants that the Central Government has promulgated the Special Economic Zones Act, 2005 and the provisions as contained under Sections 5, 23, 24, 51 and 58 of the Act ousts the jurisdiction of the Debts Recovery Tribunal and on this basis, it is contended that since the Industry of the appellants is situated within the Special Economic Zone area, therefore, it is covered under the said Act, hence the provision of the RDDBFI Act, 1993 cannot be invoked for the recovery of its debts by the Bank against the appellants.

(2.) IN this reference, the Tribunal relied upon the two letters, which are Annexure Nos. A -28 and A -29 dated 18th January, 2012 and 8th February, 2012 issued by the Assistant Development Commissioner, Indore Special Economic Zone. He has observed that the recovery of debt is a matter which pertains purely between both the units and the Bank which may taken action under statutory provisions to recover its dues because of commercial borrowing between the Bank and the appellant.

(3.) SECTION 23 provides that the State Government, in which the Special Economic Zone in situated, may, with the concurrence of the Chief Justice of the Hon'ble High Court of that State, designate one or more Courts to try all suits of a civil nature arising in the Special Economic Zone and to try notified offence committed in the Special Economic Zone. Sub -section (2) of Section 23 provides that no Court, other than the Court designated under Sub -section (1), shall try any suit or conduct the trial of any notified offence referred to in that Sub -section. Proviso appended to Sub -section (2) of Section 23 of the Act, 2005 further makes it clear that the Courts, in which any suit or the suit in civil nature in special Economic Zone has been filed before the commencement of this Act, shall continue to conduct the trial of such suit after the commencement of the Act. The same provision by the second proviso appended to Sub -section (2) of Section 23 relates to trial of notified offence. Nothing has been brought either before the Tribunal below or before this Tribunal that Section 23 has been brought into force by the Central Government.