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        Companies Law

        1999 (8) TMI 857 - HC - Companies Law

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        Tribunal transfer under debt-recovery law extends to Order 9 Rule 13 applications, leaving civil courts without jurisdiction. A special debt-recovery statute conferring exclusive jurisdiction on the Tribunal for covered bank debt claims also bars civil court jurisdiction in ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Tribunal transfer under debt-recovery law extends to Order 9 Rule 13 applications, leaving civil courts without jurisdiction.

                              A special debt-recovery statute conferring exclusive jurisdiction on the Tribunal for covered bank debt claims also bars civil court jurisdiction in matters within that scheme and transfers pending suits and other proceedings to the Tribunal. An application under Order 9 Rule 13 CPC to set aside an ex parte decree was treated as an "other proceeding" because the remedy is procedural and travels with the transferred dispute. After transfer, the proper forum for such an application is the Tribunal, not the civil court.




                              Issues: Whether, after the establishment of the Tribunal under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, the civil court retained jurisdiction to entertain an application under Order 9, Rule 13 of the Code of Civil Procedure, 1908 to set aside an ex parte decree passed in a suit for recovery of a bank debt.

                              Analysis: The statutory scheme of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 confers jurisdiction on the Tribunal for recovery claims above the prescribed limit, bars the jurisdiction of civil courts in relation to matters covered by section 17, and provides for transfer of pending suits and other proceedings to the Tribunal under section 31. The expression 'other proceeding' was treated as wide enough to include an application under Order 9, Rule 13 of the Code of Civil Procedure, 1908. The right to seek setting aside of an ex parte decree was held to be a procedural remedy that travels with the transferred subject-matter, and the proper forum after transfer is the Tribunal, not the civil court.

                              Conclusion: The civil court had no jurisdiction to entertain the application under Order 9, Rule 13 of the Code of Civil Procedure, 1908, and the matter was required to be dealt with by the Tribunal.

                              Final Conclusion: The transfer of debt-recovery jurisdiction to the Tribunal extended to the pending application for setting aside the ex parte decree, so the revision failed.

                              Ratio Decidendi: Where a special statute transfers exclusive jurisdiction over a class of disputes to a Tribunal and provides for transfer of pending suits and other proceedings, a post-decree application arising from that dispute is also a transferred proceeding and must be pursued before the Tribunal.


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