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of <h1>Punjab National Bank granted permission to pursue recovery against defaulting respondents in Debt Recovery Tribunal</h1> <h3>Punjab National Bank Versus Amrit Cellulose Ltd.</h3> Punjab National Bank Versus Amrit Cellulose Ltd. - [1999] 97 COMP. CAS. 126 (PUNJ. & HAR.) Issues:Permission to present and prosecute an application under section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 before the Debt Recovery Tribunal, Jaipur.Analysis:The High Court of Punjab and Haryana heard a petition filed by Punjab National Bank seeking permission to present and prosecute an application under section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, before the Debt Recovery Tribunal, Jaipur, against the respondents. The respondents, including the company and its directors, had defaulted on a loan provided by the bank, resulting in a substantial amount due and payable to the bank. The company was ordered to be wound up, and the official liquidator was appointed. The bank sought permission to pursue recovery of the outstanding amount before the Debt Recovery Tribunal. The court noted that there was no legal impediment to granting the bank permission to proceed with the application.The court emphasized the duty of the company court to protect the assets of the company while ensuring the expeditious disposal of suits and proceedings. It was highlighted that granting permission to the bank to prosecute the case before another forum, as provided under the statute, should not face impediments. The court referred to a detailed judgment in a similar case to support its decision. Ultimately, the court allowed the petition, granting the bank leave under section 446 of the Companies Act to present the proposed petition before the Debt Recovery Tribunal in Jaipur. However, the grant of leave was made conditional, stating that any recovery certificate or decree passed by the Tribunal should not be executed against the assets of the company without specific leave from the court.In conclusion, the petition was allowed, and the bank was permitted to pursue the proposed application before the Debt Recovery Tribunal, subject to the conditions set by the court. The judgment highlighted the importance of balancing the protection of company assets with the efficient resolution of legal proceedings, ultimately granting the bank the opportunity to seek recovery through the designated forum.
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