Exclusive Tribunal jurisdiction in bank debt recovery disputes bars transfer to the High Court despite overlapping letter of credit issues.

A special statute conferring exclusive jurisdiction on the Debts Recovery Tribunal for recovery of bank debts requires disputes connected with a letter of credit to be left to that forum. A letter of credit is a separate commercial contract requiring strict compliance with its terms, and related defences such as fraud, irretrievable injustice, or non-compliance may be raised before the Tribunal. Because the bank debt claim and any insurance claim arose from different causes of action, and the statutory scheme excludes civil court jurisdiction while providing for transfer of pending matters to the Tribunal, transfer to the High Court was not justified. The request for transfer was rejected.

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Issues: Whether the petition seeking transfer of the recovery proceeding from the Debts Recovery Tribunal to the High Court deserved to be allowed.

Analysis: The dispute arose from a claim based on a letter of credit, while the proceeding before the Tribunal concerned recovery of a bank debt under the special statute. A letter of credit is a separate commercial contract requiring strict compliance with instructions, and disputes arising out of it can be raised before the Tribunal, including defences such as fraud, apprehension of irretrievable injustice, or non-compliance with instructions. The Court also noted that the special statute confers exclusive jurisdiction on the Tribunal for matters within its scope, excludes the jurisdiction of civil courts in such matters, and provides for transfer of pending cases to the Tribunal. Since the bank claim and any insurance claim arose from different causes of action, and the statutory scheme favored adjudication by the Tribunal, transfer to the High Court was not warranted.

Conclusion: The request for transfer to the High Court was rejected.

Ratio Decidendi: Where a special statute confers exclusive jurisdiction on a tribunal for recovery of bank debts, disputes connected with a letter of credit should ordinarily be left to that forum, and transfer to a High Court is not justified merely because some common issues may overlap with other proceedings.

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