Interim stay on debt recovery law in Delhi after prima facie concerns over discrimination and defence rights.

The Delhi HC recorded a prima facie view that the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 may be invalid as enacted, noting objections based on alleged discrimination, the absence of counter-claim and set-off before the Tribunal, and the impact of section 19 procedure on defence rights. To preserve the position while the writ petition remained pending, the Court granted interim protection and stayed the Act's operation in its applicability to the Union Territory of Delhi.

---

---

Issues: Whether the operation of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 should be stayed in its applicability to the Union Territory of Delhi pending consideration of the writ petition.

Analysis: The Court recorded a prima facie view that the Act, as enacted, may be invalid. It noted the objections relating to alleged discrimination, the absence of counter-claim and set-off before the Tribunal, the effect of the procedure under section 19 on defence rights, and the possible complications if the Act were allowed to operate before the challenge was decided. On that basis, the Court considered it appropriate to preserve the position by granting interim protection.

Conclusion: The operation of the Act was stayed in its applicability to the Union Territory of Delhi.

---