Dismissed

Aluminium Industries Assam Pvt. Ltd. and Ors. v. Asset Reconstruction Company India Ltd.

DRAT5 May 2022MISC APPLICATION/2/2022

Case brief

AI extract

What is this about?

The DRAT held that a misc application seeking intervention in an execution proceeding, filed under Section 17A read with Rule 22, is not maintainable. The Court ruled that Section 17A confers only administrative superintendence and judicial orders challenging via appeal under Section 30 cannot be set aside under Section 17A.

What the court decided

AI extract

Aluminium Industries Assam Pvt. Ltd. and Ors. versus… — Execution and Attachment | DRAT (2022)

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IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA

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(Misc. Application No. 02 of 2022)

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(Arising out of O.A. 539 of 2011 DRT-1, Kolkata)

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THE HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA CHAIRPERSON

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05.05.2022	Aluminium Industries Assam Private Limited & Others … Appellants -vs- Asset Reconstruction Company India Limited … Respondent
	Mr. Prabhat Sil with Mr. Kaushik Banerjee, Learned Counsel for Appellant
	Ms. Poetry Dutta, Learned Counsel for Respondent

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THE APPELLATE TRIBUNAL :

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Heard the Learned Counsel for the parties and perused the record.

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This Misc. Application has been filed by one M/s. Aluminium Industries Assam Private Limited and Smt. Lalita Agarwal with the following prayers :

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“(i) An order of injunction be passed restraining the Respondent No. 1 to deal with the said property situated at Tinsukia, Assam, arising out of execution being RP No. 10 of 2015 in any manner whatsoever pending before the Learned Recovery Officer, DRT-1, Kolkata;

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(ii) In the meantime extend the interim order dated 1^st March, 2002 passed in W.P. No. 1130 of 2022 by Hon’ble Justice Rajasekhar Mantha on 01.03.22 be extended uptil disposal of this instant application;

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(iii) Such further order and/or orders as this Learned Tribunal may deem fit and proper under the General Power of Superintendence to the Learned Recovery Officer, Debts

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Recovery Tribunal – 1, Kolkata in R.P. No. 10 of 2015 being proceeded with hot haste in complete miscarriage of justice; (iv) Pass such further and/or other order or orders be passed and/or direction or directions be given as to this Hon’ble Court may deem fit and proper.”

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Learned Counsel for the Appellant vehemently argued that Learned Recovery Officer has transgressed its jurisdiction in passing the order regarding the property in question which is situated in Tinsukia, State of Assam, beyond the jurisdiction of Learned DRT-1, Kolkata and the Certificate Holder Bank is misusing the process of law and not taking appropriate steps for transfer of Certificate before the appropriate Court. Accordingly, the application, under Section 17A of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as Act) and Rule 22 of the DRAT Procedure and Rules, 1994, is pressed into service. Learned Counsel submits that Learned Recovery Officer had no jurisdiction to pass any order regarding a property which is situated outside the jurisdiction of the DRT -1, Kolkata, that too, which is situated in the State of Assam. Section 17 of the Act reads as under:

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“17. Jurisdiction, powers and authority of Tribunals

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(1) A Tribunal shall exercise, on and from the appointed day, the jurisdiction, powers and authority to entertain and decide applications from the banks and financial institutions for recovery of debts due to such banks and financial institutions. [(1A)Without prejudice to sub-section (1) –

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(a) the Tribunal shall exercise, on and from the date to be appointed by the Central Government, the jurisdiction, powers and authority to entertain and decide applications under Part-III of Insolvency and Bankruptcy Code, 2016

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(b) the Tribunal shall have circuit sitting in all district headquarters]

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(2) An Appellate Tribunal shall exercise, on and from the appointed day, the jurisdiction, powers and authority to

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entertain appeals against any order made, or deemed to have been made, by a Tribunal under this Act .

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[2A) Without prejudice to sub-section (2), the Appellate Tribunal shall exercise, on and from the date to be appointed by the Central Government, the jurisdiction, powers and authority to entertain appeals against the order made by the Adjudicating Authority under Part III of the Insolvency and Bankruptcy Code, 2016.]”

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Rule 22 of the Debts Recovery Appellate Tribunal (Procedure)

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Rules, 1994 reads as under:

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“Orders and directions in certain cases

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The Appellate Tribunal may make such orders or give such directions as may be necessary or expedient to give effect to its orders or to prevent abuse of its process or to secure the ends of

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justice.”

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Learned Counsel submits that as per Section 17A of the Act, general power of superintendence and control over the Tribunals under the jurisdiction of Debts Recovery Appellate Tribunal has been given to the Chairperson wherein if any illegality is being committed by any officer within the jurisdiction of the Appellate Tribunal, same can be looked into by this Appellate Tribunal. Learned Counsel submits that general power of superintendence is similar to the powers of Revisional Courts as provided under Section 115 of the CPC. It is further submitted that under Sub-section (2) of Section 17A of the Act, Appellate Tribunal can transfer any case from one Tribunal to another on the application of the parties or suo moto.

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Learned Counsel of the Respondent F.I. submits that Section 30 of the Act, provides a provision for appeal against an order of the Learned Recovery Officer but no appeal is preferred. It is further submitted that power under Section 17A of the Act is a general power of superintendence which cannot be exercised in the matter of judicial proceedings rather it is an administrative power assigned to the Appellate Tribunal.

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So far as maintainability of the Misc. Application is concerned, application is made under Section 17A of the Act read with Rule 22 of the Debts Recovery Appellate Tribunal (Procedure) Rules. Both the provisions have been quoted above. Section 17(A) specifically empowers the Chairperson of the Appellate Tribunal to exercise general power of superintendence and control over the Tribunals within his jurisdiction, including the power of supervising the work and recording of Annual Confidential Report of the Learned Presiding Officers. Sub-section 1(a), as amended from 1.9.2016, further extends the general power of superintendence and control over the Tribunals under the jurisdiction of the Chairperson and the Chairperson may direct Tribunals to furnish required information with regard to number of cases disposed of etc. Chairperson can also convene meetings of the Presiding Officers periodically to review their performance. Rule 22 of the Debts Recovery Appellate Tribunal (Procedure) Rules provides issuance of orders or directions by the Appellate Tribunal to give effect to its order or prevent abuse of its process to secure the ends of justice. Sections 17A and 22, as already referred to above, clearly demonstrate that the power, which was given to the Chairperson of the Appellate Tribunal by the amended Act of 1 of 2000, is for general superintendence for smooth functioning of the Tribunals working under the jurisdiction of Appellate Tribunal. This power of general superintendence relates to the administrative control over the Tribunals; this is the reason that Appellate Tribunal has been empowered to call for different statements and other information from the Tribunals, even the Annual Confidential Reports of the Presiding Officers are recorded by the Chairperson of the Appellate Tribunal. This administrative power of general superintendence can in no way be extended in the judicial matters.

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So far as judicial process is concerned, Section 30 provides for appeal against the orders of Recovery Officer. If any order is passed by any authority in a judicial proceedings and there is option for filing an appeal, provided by the Act, aggrieved party will be at liberty to

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exercise that option. But a judicial order cannot and should not be set aside or overturned in exercise of the administrative powers.

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So far as Section 17(A) Sub-section (2) is concerned, no doubt, power to transfer a case from one Tribunal to another is given to the Chairperson. General prayer is made in relief form to pass such order or orders as deemed fit and proper. It may not be proper to pass an order under Section 17 (A) (2).

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Learned Counsel has placed reliance upon a judgment of Punjab And Haryana High Court passed in Civil Writ Petition No. 22219 of 2017 (O&M), decided on 15^th July, 2020 in the matter of Harjinder Singh -vs- Recovery Officer-II and Others which is not applicable to the facts of the present case as the present Misc. Application is not maintainable.

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