Counterclaim jurisdiction in bank recovery proceedings under amended section 19 allows the Tribunal to hear defendants' objections and claims.

Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, as amended, expressly authorises the Debts Recovery Tribunal to deal with defendants' counterclaims and the bank's objections in a transferred recovery proceeding. The Tribunal's earlier view that the counterclaim arose from a separate cause of action was not examined on its merits because the amendment clarified the Tribunal's competence. The transferred application was therefore to be decided by the Tribunal, including the counterclaim, and disposed of expeditiously.

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Issues: Whether the Debts Recovery Tribunal could entertain and adjudicate the defendants' counterclaim in a suit transferred to it under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.

Analysis: The suit filed by the bank was transferred to the Tribunal under section 31 of the Act. The Tribunal had originally taken the view that the counterclaim was on a separate cause of action and outside its jurisdiction. The revision was heard in the light of the subsequent amendment to section 19, whereby sub-sections (6), (8), (9), (10) and (11) expressly enabled the Tribunal to deal with counterclaims and the applicant bank's objections. In view of that amendment, it was held unnecessary to examine the earlier order of the Tribunal on its own merits.

Conclusion: The Debts Recovery Tribunal is empowered to consider the defendants' counterclaim and the bank's objections thereto under section 19 of the Act.

Final Conclusion: The revision was disposed of by recognising the Tribunal's competence to adjudicate the counterclaim, and the transferred application was directed to be decided expeditiously.

Ratio Decidendi: Where section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 expressly authorises adjudication of counterclaims and objections, the Tribunal can entertain the defendants' counterclaim in a transferred bank recovery proceeding.

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