Natural justice in DRT interim orders: ex parte relief without hearing objections was set aside and remitted for fresh consideration.

Interim orders of the Debts Recovery Tribunal were held vulnerable where they were passed without hearing the defendants and without considering their objections. The High Court noted that granting interim relief, directing deposit, and contemplating appointment of a receiver without an effective opportunity of hearing was contrary to section 19(20) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. The orders were also described as laconic, unreasonable, and affected by total non-application of mind. The impugned orders were set aside and the matter was remitted for fresh consideration after notice to both sides and in accordance with law.

---

---

Issues: Whether the interim orders passed by the Debts Recovery Tribunal without hearing the defendants and without considering their objections were liable to be set aside for breach of natural justice and non-application of mind.

Analysis: The Tribunal passed the order granting interim relief and directing deposit and possible appointment of a receiver without considering the objections filed by the petitioners and without affording them an effective opportunity of hearing. Such exercise of power was held to be contrary to section 19(20) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, which requires an opportunity of hearing before passing interim or final orders. The order was also found to be laconic, unreasonable, and vitiated by total non-application of mind, amounting to an error apparent on the face of the record.

Conclusion: The impugned orders were liable to be set aside and the matter remitted to the Tribunal for fresh consideration after notice to both sides and in accordance with law.

---