The Divisional Recovery Tribunal allowed the withdrawal of the original application where the lender bank had settled the claim outside court and received the full settlement amount, citing the principle of dominus litis.
IA No. 1132/2022 allowed; Original Application disposed as withdrawn; Registry directed to return documents.
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.
| 14/09/2022 | Ex. No. Before Presiding Officer Dr. Rekha G. Dhakar, DRT-1, Mumbai. Roznama in OA 501 of 2022 Kotak Mahindra Bank Limited Vs Badrinath Constructions Badrinath Tandel |
Next date |
|---|---|---|
| Advocate Ashwini S. Jadhav i/b Advocate | ||
| Sashikant Gaikwad appeared for the applicant. None for the defendant. IA No. 1132/2022 |
||
| 1. The Ld. Counsel appearing for the Applicant Bank seeking permission to withdraw the Original Application as they have settled the matter out of court with the defendants and received an |
||
| amount of Rs.24.52 Lacs |
||
| (Rupees Twenty Four Lacs and Fifty Two Thousand Only) towards full and final settlement of entire OA claim of Rs. 30,81,520.70/-. |
||
| 2. Considered the contentions of Ld. Counsel for the applicant and gone through the record as well as case laws on the subject. 3. The Hon’ble High Court of Delhi in the matter of Satish Chand Gupta & Ors. Vs. |
||
| SBI-W.P © 2588/2010 held that “…..DRT |
can have no objection to the same as the bank which is claimant has agreed to the same. The bank is dominus litis and it is for the bank to decide as to against which party it desires the litigation to continue. It is purely a contractual matter and the bank in its wisdom decided to settle the claim against the petitioners…..”. It was further laid down that the Tribunal appears to think that it is some kind of Ombudsman/ Auditor of the bank to scrutinize the settlement arrived between the parties. The Tribunal is no one to decide as to at what value the bank should settle its dues with the borrower especially when the bank has Managers who have acted in pursuance to authorization in their favour and after due consideration of the proposal of the petitioners….”. 4. In the light of above, since the account impugned has already been closed in terms of settlement between the parties and Bank has already received the entire settlement amount, further the bank has dominus litis in their matter, therefore,
| IA No. 1132/2022 is allowed and | |
|---|---|
| Original Application is hereby disposed as withdrawn. 5. The Registry of this Tribunal is hereby |
|
| directed to return the complete |
|
| documents of the OA to the authorized officer of the applicant bank before the |
|
| Ld. Registrar on 27/09/2022 after |
|
| Ex-8 Ex- 9&10 |
obtaining necessary acknowledgment. However, the order sheets as well as the plaint and necessary documents shall be kept with this Tribunal. 6. The applicant is directed to follow the procedure of refund of court fees as per the DRT (Refund of Court fee) Rules 2013. File be closed and consigned to record room. Praecipe Application for withdrawal Sd/- P.O. DRT-I |
Sgj/-9
3 issues framed by the court
Whether the Debts Recovery Tribunal has jurisdiction to object to the withdrawal of a recovery proceeding after the lender has settled the claim and received the full amount.
Whether the principle of dominus litis applies to allow a bank to settle its dues and withdraw proceedings outside court.
Whether the Tribunal can scrutinize a settlement amount agreed upon between a bank and a borrower.
Colour shows how this judgement treated each authority
Satish Chand Gupta & Ors. Vs. SBIReferred¶2
Satish Chand Gupta & Ors. Vs. SBI-W.P © 2588/2010
Kotak Mahindra Bank Limited
Badrinath Constructions Badrinath Tandel
Dr. Rekha G. Dhakar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
