Execution proceedings under the Debt Recovery Act can remain in civil court when already underway and transfer would cause delay.

Execution proceedings pending in a civil court when the Debt Recovery Tribunal was established were treated as falling within the expression "suit or other proceedings" in section 31 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, but not in a manner that required transfer where the execution had already advanced. Reading sections 18, 19, 25 and 31 together, the court applied the Act's object of expeditious debt recovery and held that such ongoing execution could continue in the civil court when transfer would cause delay and defeat that purpose. The decree-holder was entitled to receiver-assisted sale of the hypothecated securities.

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Issues: (i) Whether execution proceedings pending in a civil court on the date of establishment of the Debt Recovery Tribunal stood transferred to the Tribunal under section 31 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, and whether such proceedings could continue in the civil court.

Analysis: The statutory scheme shows that proceedings before the Tribunal commence only on an application under section 19, followed, if successful, by issuance of a certificate under section 19(7) for recovery by the Recovery Officer under section 25. The Act defines "debt" broadly enough to include a decree payable or executable on the relevant date. Reading sections 18, 19, 25 and 31 together, and applying the object of the enactment of expeditious recovery, the expression "suit or other proceedings" in section 31 was held to include execution proceedings, but not so as to compel transfer of already pending and advanced execution matters where such transfer would cause delay and defeat the statutory purpose. On the facts, the execution steps had already been set in motion and were continuing before the Tribunal came into existence in the State.

Conclusion: Execution proceedings already pending and underway in the civil court at the time of establishment of the Tribunal were not required to be transferred under section 31 and could continue before the civil court; the applicant was entitled to the receiver's assistance for sale of the hypothecated securities in terms of the decree.

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