Exclusive debt recovery jurisdiction bars bank action under inconsistent State recovery law; revenue certificate quashed.

Where the Recovery of Debts Due to Banks and Financial Institutions Act applies, its exclusive debt-recovery mechanism prevails over an inconsistent State recovery statute, and the State saving clause does not extend to the M.P. Lok Dhan Adhiniyam. A revenue recovery certificate issued at a bank's instance under the M.P. Act was therefore unsustainable because recovery of bank dues must proceed, if at all, under the central Act or other legally available remedies. The contrary Single Judge view was treated as inconsistent with binding Supreme Court authority and not controlling.

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Issues: Whether a revenue recovery certificate issued at the instance of a bank under Section 3 of the M.P. Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam, 1987 read with Rule 5 of the M.P. Lok Dhan (Shodhya Rashiyon Ki Vasuli) Niyam, 1988 could stand in view of the Recovery of Debts Due to Banks and Financial Institutions Act.

Analysis: The Recovery of Debts Due to Banks and Financial Institutions Act confers exclusive jurisdiction on the debt recovery mechanism for adjudication and recovery of debts due to banks and financial institutions. Its overriding provision prevails over inconsistent State recovery laws, and the saving clause does not extend to the M.P. Adhiniyam. The provisions of the U.P. recovery law considered by the Supreme Court were treated as in pari materia with the M.P. enactment, and the later Supreme Court ruling declared that such State recovery proceedings could not be used by a bank for recovery of its dues. The contrary Single Judge view was held not to govern the field, being inconsistent with binding Supreme Court authority.

Conclusion: The recovery certificate and the consequential proceedings under the M.P. Adhiniyam were unsustainable and were quashed; recovery, if any, was left to proceed only under the Recovery of Debts Due to Banks and Financial Institutions Act or other legally available remedies.

Ratio Decidendi: Where the Recovery of Debts Due to Banks and Financial Institutions Act applies, its exclusive and overriding scheme bars resort to an inconsistent State recovery statute by or at the instance of a bank, unless the State law is saved by the Act.

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