Counter-claims under debt recovery law require prescribed court fee when treated as independent applications and cross-suits.

A counter-claim filed by a defendant under section 19(8) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 is treated as an application under section 19 and carries the effect of a cross-suit under section 19(9). On that basis, Rule 7 of the Debt Recovery Tribunal (Procedure) Rules, 1993 requires the counter-claim to be accompanied by the prescribed court fee. The text states that the counter-claim is based on an independent cause of action and therefore must satisfy the fee requirement.

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Issues: Whether a defendant filing a counter-claim under section 19(8) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 is required to pay court fee under Rule 7 of the Debt Recovery Tribunal (Procedure) Rules, 1993.

Analysis: Section 19(8) permits a counter-claim by the defendant and section 19(9) gives it the effect of a cross-suit, enabling the Tribunal to decide both the original claim and the counter-claim together. Rule 7 requires every application under section 19 to be accompanied by the prescribed fee. As the counter-claim is an application under section 19 and is based on an independent cause of action, it must be filed with the requisite court fee.

Conclusion: The requirement to pay court fee on the counter-claim is upheld and the contention of the petitioner is rejected.

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