The Tribunal allowed the appeal held that the DRT committed an illegality by implicitly settling terms of a settlement or Ominous Transfer Scheme (OTS) which is contrary to law, set aside the impugned order dated 22nd December, 2023, and disposed of the matter accordingly.
Impugned order dated 22nd December, 2023 is set aside. No order as to costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA
(Misc. Appeal No. 05 of 2024)
(Arising out of S.A. No. 101 of 2022 in DRT-I Kolkata)
THE HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA
CHAIRPERSON
Union Bank of India, a body corporate constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at 239, Vidhan Bhawan Marg, Mumbai-400021 and carrying on business, inter alia, from its Howrah Branch at 21/1, Natabar Pal Road, Howrah -711101, West Bengal;
…Appellants
-Versus-
… Respondents
Counsel for the parties Mr. Pankaj Kumar Mukherjee, Learned Counsel, for the Appellant Mr. Debasish Chakrabarty, for the Respondents
2
JUDGMENT : On 12th March, 2024
THE APPELLATE TRIBUNAL :
Heard the Learned Counsel for the parties and perused the record. Impugned order was passed by the Learned DRT-1 Kolkata on 22nd December, 2023 whereby impliedly the Learned DRT has settled the terms of settlement and OTS between the parties.
At the very outset Learned Counsel for the Respondent submits that the Respondents would not be able to comply the directions as issued by the Learned DRT and they will not be able to make the payments. On the basis of this statement only, appeal is liable to be allowed. However, before parting with the matter it would be appropriate to observe that it is settled legal proposition that the DRT cannot impose the terms of settlement or OTS upon the parties which is against law. Accordingly, I found that an illegality has been committed by the Learned DRT. Appeal deserves to be allowed. Accordingly, Appeal is allowed.
Order
Appeal is allowed. Impugned order dated 22nd December, 2023 is set aside. No Order as to costs. File be consigned to Record Room.
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Copy of the order be supplied to Appellant and the Respondents and a copy be also forwarded to the concerned DRT.
Copy of the Judgment/ Final Order be uploaded in the Tribunal’s Website.
Order signed and pronounced by me in the open Court on this the 12th day of March, 2024.
(Anil Kumar Srivastava,J) Chairperson
Dated: 12th March, 2024 12/tp
3 issues framed by the court
Whether the DRT could have imposed terms of settlement or Ominous Transfer Scheme (OTS) contrary to law.
Whether the impugned order of the DRT should be quashed on grounds of illegality.
Whether the appeal filed by the Appellant deserves allowance.
Union Bank of India
M/s JMD Enterprise
Mr. Anup Shankar Saha
Mrs. Anurupa Saha
Mr. Subhendu Guha
Anil Kumar Srivastava
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
